Chinese investments will not benefit India | Expert Views

The Economic Survey 2024 suggested that India should welcome Chinese foreign direct investment (FDI) to boost manufacturing, increase exports, reduce imports from China, and strengthen our role in global value chains (GVC). Suppose India allows such investments — will the promised gains to manufacturing, exports, imports, and GVC actually happen?

Manufacturing: Let’s understand the impact of Chinese investment on manufacturing with the example of Mr Yang (an imagined name), the CEO of a large Chinese firm making solar modules.

Mr Yang wants to manufacture solar modules in India and compares the costs at each production stage in

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