Our Chairman Shri Rajnish Goenka had a very fruitful and informative meeting with the highly knowledgeable Ambassador of India in China. Mr. Gokhale suggested various bilateral issues, which need to be addressed to further boost and impetus the Indo China trade to reduce trade deficit in India’s favour.
While discussing Mr. Goenka highlighted that India and China enjoy strong bilateral Trade and the Indian MSME sector is poised for a major leap, driven by the high growth with a high level of innovation and seek a long-term partnership with Chinese entrepreneurs and investors, especially in areas like IT and digital, mobile components, automobile ancillaries, mobile screens, camera, antenna and battery to set up their plants as India enter into the next phase of mobile manufacturing. The Modi government’s policy and new tax rules have encouraged electronic product manufacturing in the country, mainly mobile phones.
Several initiatives to bolster growth of the manufacturing sector in India such as Make in India, Digital India and Start-up India, which have made the world’s economic superpowers look at India with “a lot of admiration.
Mr. Goenka also said that China is Facing with double digit increase in Labour Cost and the Chinese Companies have been searching for alternative manufacturing destination and New Markets and they has cumulatively invested $4.07 billion in India and has emerged as one of the fastest growing sources of FDI into India (17th largest in 2016) with around 20 mobile phone firms, mostly component suppliers and contract manufacturers, have started manufacturing in India including Foxconn, Wistron, Pegatron, Delta, Flextronics, Xiaomi, Huawei, LeEco, Vivo and Compal.
Mr. Gokhale said that despite an increase in Bilateral Trade, Sino-Indian investments are far from a smooth sail with the huge trade imbalance and there is a need to discuss the way & means to enhance cooperation between the SMEs of the Two Countries. India’s attempts to gain market access in China for its IT, Agricultural and Pharmaceutical industries have hit a wall for over a decade.
Therefore, while concluding the meeting for making this trade partnership reach its full potential, Mr. Goenka urge his Excellency to participate in the 4th India expo to work with participating Indian and Chinese SMEs to reduce this deficit in the interest of Sustainable Bilateral Trade.
Mr. Gokhale has accepted the invitation as he is keen to support MSMESector.