Increased FDI inflows from China can help India push exports: Eco Survey
Increased foreign direct investment inflows from China can help increase India's global supply chain participation and push exports, says the Economic Survey.
The Survey said as India looks to deepen its involvement in global value chains (GVCs), it needs to look at the successes and strategies of East Asian economies.
These economies have typically pursued two main strategies - reducing trade costs and facilitating foreign investment.
It added that India faces two choices to benefit from 'China plus one' strategy and that is either to integrate into China's supply chain or promote FDI from China.
"Among these choices, focusing on FDI from China seems more promising for boosting India's exports to the US, similar to how East Asian economies did in the past," the Survey, tabled in Parliament by Nirmala Sitharaman on Monday, said.
Moreover, choosing FDI as a strategy to benefit from the China plus one approach appears more advantageous than relying on trade.
"This is because China