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There Are Ways New Delhi Can Hit Back Against China Which Is Pumping Money Into Countries Around India


10/06/2017


There Are Ways New Delhi Can Hit Back Against China Which Is Pumping Money Into Countries Around India
India is looking to defended its sphere of influence, as China invests millions in the region, even though India has long been the dominant power in South Asia.
 
Reacting to related questions, a panel of experts at the World Economic Forum's India summit said that India must play to its strengths instead of attempting to match Chinese capital.
 
"China has surplus capital to invest — we don't but we can do our own thing in areas of different value...That's still highly appreciated and sought after," said Shashi Tharoor, a member of India's parliament.
 
Right in India's backyard, such as Sri Lanka's southern port of Hambantota and the China-Pakistan-Economic-Corridor, Beijing has funded various infrastructure projects as part of its ambitious Belt and Road Initiative. Delhi had refused Beijing’s invitation to join the Belt and Road project of China and the investments has triggered criticism from New Delhi.
 
Multiple territorial disputes like the Doklam standoff in the Himalayas that ended last month, had marred relations between the two fast-growing economies and the relationships have remained marred and the financial investments has added to the growing rivalry between the two Asian giants.
 
Panelists at the WEF said that Prime Minister Narendra Modi should continue exporting low-cost technology and offering favorable development loans in order to ensure China doesn't eclipse India on its home turf.
 
In South and Southeast Asia, India has emerged as a leader of low-cost tech. the April launch of the International Solar Alliance — New Delhi's brainchild aimed at boosting solar cooperation among member nations was launched in April and this reflects the fact that the country is championing solar energy even as India’s affordable generic pharmaceuticals are highly sought-after in the region.
 
Suhasini Haidar, diplomatic editor of The Hindu newspaper, said that because of the fact aspects such as poverty and weather that ails India are challenges that are similar to other markets in the region and this has put India at an advantage in this arena. She said that "we're setting ourselves up for disappointment," if New Delhi attempts to compete against China's sizable war chest on the investment front. "We need to play to our strengths."
 
Leela Ponappa, India's former deputy national security advisor pointed out that problems of exchange rate and devaluation are helped to be avoided by India for its peers through rupee-structured loans, which helps to support the economic development of South Asian peers.
 
"There's no question of competing with China, why should we?" she said. Modi should simply focus on his country's long track record of building human capacities in South Asia, she continued.
 
(Source:www.cnbc.com)