The Chinese state media on Sunday hailed India's biggest tax reform- the Goods and Services Tax and said the Country's ambition to rise as a great power has received a strong boost from abroad, in the form of massive investment from foreign manufacturers.
India is receiving a “massive influx” of foreign investments which will greatly enhance its ability to develop the manufacturing sector and China should “keep calm” and start working on a more effective growth strategy for the new era, a state-run newspaper said on Sunday.
“This massive influx of investment by foreign manufacturers is of great significance for India’s economy, employment and industrial development,” an article in the Global Times said.
“China should be calm seeing India’s rise. To cope with competition from India, China could start working on a more effective growth strategy for the new era now,” it said.
The influx of foreign manufacturers is addressing some of India’s weaknesses and enhancing its manufacturing ability, with Chinese companies also playing an important role in the process, according to the article.
“This is a repeat of China’s introduction of foreign investment, which is why it is likely that India may succeed.
“If in the past India lacked capital, a developed manufacturing sector and skilled manufacturing workers, the foreign manufacturing inflow is now helping India address the problem, backing up the government’s ‘Make in India’ initiative,” it said.
The article listed a host of foreign companies including some of the Chinese firms which are investing in India.
“It should be pointed out that what is happening in India occurred in China two decades ago.
“Just like what happened with China during its reform and opening-up, the arrival of foreign manufacturing will greatly enhance India’s ability to develop its manufacturing sector, which will help in cultivating a large number of skilled workers, managers and factories,” it added.
(With agency inputs)