PM Modi's 'Make in India' campaign: China may be taking note of India initiative

NEW DELHI: A day before India launched the ‘Make in India’ campaign, China launched a plan to strengthen its manufacturing sector. The Indian embassy in Beijing and consulates in Guangzhou, Shanghai and Hong Kong held events showcasing the 'Make in India' campaign.

If successful, the ‘Make in India’ initiative would hit China’s exports that have swamped India’s markets. India has a huge $36 billion trade deficit with China because of steep rise in imports of manufactured goods.

China is clearly looking to stay ahead, an indication that it takes seriously Prime Minister Narendra Modi’s initiative to revive domestic manufacturing.

At a cabinet meeting presided over by Premier Li Keqiang, China announced tax incentives to encourage companies to upgrade their capital equipment and invest more in research & development. Companies that bought new R&D equipment and facilities after January 1 or possess minor fixed assets will have taxes reduced based on value, it decided. “The meeting also asked government organs to implement new measures as soon as possible to arm “Made in China” with advanced technology and equipment, encouraging more competitive products with high added value,” Xinhua news agency said on Wednesday.

India has so far not offered any incentive. Instead, it has promised to improve the environment for manufacturing.