Chinese cos must set up mfg base in India, says DIPP secretary

Chinese companies should increase investment and set up manufacturing base in India, DIPP Secretary Amitabh Kant said today.
"China must realise that this adverse balance of trade is totally unsustainable in the long run and its important that Chinese companies must relocate their manufacturing bases to India," he said at an event of telecom gear maker Huawei here.
The Chinese firm launched a research and development (R&D) campus here with an investment of USD 170 million.
Investments from China would help in financing the trade deficit. India's exports to China were valued at about USD 14.82 billion while imports totalled USD 51 billion in 2013-14 leaving a huge trade deficit of over USD 36 billion.

The DIPP secretary further said India will be one of the countries with huge demand in future while it the same is coming down in China.
"There is an unique opportunity for Chinese companies to get into India to manufacture," he added.

The Indian government has a launched a massive 'Make In India' campaign to make the country a global manufacturing hub.
Investments from China are extremely low, at about USD 453 million.
Kant further said China is the factory of the world and India is the back office of the world.
"China's future of manufacturing will be determined by its convergence and integration with software. India has produced some of the best programmers in the world and therefore India has a growth potential of integrating manufacturing and software together," he added.