{"id":33722,"date":"2024-12-14T19:13:58","date_gmt":"2024-12-14T13:43:58","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=33722"},"modified":"2024-12-14T19:13:59","modified_gmt":"2024-12-14T13:43:59","slug":"internal-policy-barriers-china-plus-one-opportunity","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/14-12-2024\/internal-policy-barriers-china-plus-one-opportunity","title":{"rendered":"Internal Policy Barriers Hurdle to Leveraging China-Plus-One opportunity"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>16th Finance Commission<\/strong> Chairman Arvind Panagariya said that India should remain open to investments from China as other developed countries, with the exception of a handful of sectors.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the China-Plus-One strategy?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The China-Plus-One strategy refers to a business diversification approach where <strong>companies move manufacturing and sourcing<\/strong> operations outside China to reduce dependency and mitigate risks.\n<ul class=\"wp-block-list\">\n<li>Countries like <strong>India, Vietnam, Thailand, and Malaysia<\/strong> are prime contenders for this shift.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>It provides benefits like market diversification, technology transfer, and greater global supply chain participation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Factors Responsible for India\u2019s Limited Success in China-Plus-One<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Land Acquisition: <\/strong>Complex and time-consuming land acquisition processes discourage multinational investments.<\/li>\n\n\n\n<li><strong>Labour Reforms: <\/strong>Despite progress, rigid labour laws hinder manufacturing competitiveness and scalability.<\/li>\n\n\n\n<li><strong>Regulatory Bottlenecks:<\/strong> Although the GST has simplified taxation, excessive compliance requirements and bureaucratic delays raise operational costs.<\/li>\n\n\n\n<li><strong>Limited Free Trade Agreements (FTAs): <\/strong>India\u2019s cautious approach to FTAs has limited its participation in global value chains.\n<ul class=\"wp-block-list\">\n<li>In contrast, countries such as <strong>Vietnam<\/strong> actively signed FTAs, offering smoother trade processes and competitive tariffs to global investors.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Policy recommendations\u00a0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Free Trade Agreements:<\/strong> India must expand its FTAs to reduce cross-border tariffs and facilitate smoother participation in global supply chains.<\/li>\n\n\n\n<li><strong>Embrace Chinese Investments: <\/strong>The <strong>Economic Survey 2023-24,<\/strong> too, had made a strong case for seeking foreign direct investments (FDI) from China to boost local manufacturing and tap the export market.\u00a0<\/li>\n\n\n\n<li><strong>Land and Labour Reforms: <\/strong>Further streamlining policies will attract multinationals relocating from China.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concluding remarks<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The NITI Aayog report<\/strong> highlighted that countries like Vietnam and Thailand have leveraged cheaper labour, simplified tax structures, and proactive trade agreements to attract global investments.<\/li>\n\n\n\n<li>Currently India stands at a critical juncture to seize China-Plus-One strategy. Proactive policy reforms will be key to realizing this potential.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/india\/internal-policy-barriers-hurdle-to-leveraging-china-plus-one-arvind-panagariya-9721531\/\" target=\"_blank\" rel=\"noopener\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 16th Finance Commission Chairman Arvind Panagariya said that India should remain open to investments from China as other developed countries, with the exception of a handful of sectors.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-33722","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/33722","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=33722"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/33722\/revisions"}],"predecessor-version":[{"id":33726,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/33722\/revisions\/33726"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=33722"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=33722"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=33722"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}