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The session was presided over by the prime minister and the mayor of Shanghai. The focus was on the India-China opportunity in the backdrop of Make in India. Through the visits of the Chinese premier and of our prime minister, equity and trust have been built.
There are Chinese companies already manufacturing in India. There can be further collaboration through financial institutions and in sectors like telecommunication, capital goods and industrial equipment.
What kind of synergy can Indian business offer?
China views India as a good market. It has a lot of capital and expertise, especially in infrastructure, from which India can gain. The two countries discussed opportunities in pharmaceuticals, information technology and tourism. China has some 100 million tourists going out every year, of which only 200,000 visit India.
India wants an engagement with China for setting up manufacturing units in India. There is talk of a creating a group of businessmen from the two countries.
Did your company individually had a discussion on a possible Chinese partnership?
We do not need capital, and it was more of an exploratory meeting to understand the mood.
Chinese manufacturing has flourished because of low cost but when they come to India do you think their companies will be in a position to replicate the success?
They have a cost advantage which comes from competitiveness. Cost of finance, better infrastructure, cheap utilities, and scale and the speed of project execution make them competitive. China is focussed on manufacturing and offers incentives. Overall, the risk cost is lower.
In India, they will be like any other multinational, but they can bring the added advantage of scale and vertical integration. Though they are good in resource-led manufacturing, the Indian presence can help them in discreet technology and frugal engineering. Besides, India has the advantage in terms of small car and automobile component manufacturing. This competitive strength can be used. We have to make a beginning.
