Anupam Manur, assistant professor at Takshashila Institution, was quoted in an article in Hindustan Times by Rajeev Jayaswal, Rahul Singh and Rezaul H Laskar on the subject of Chinese goods and investment in India.
Manur said “As much as the popular sentiment and political will dictates, India is not in a position to hurt China economically, and therefore we should carefully consider our economic position. The key question to ask would be the cost imposed on our own society in an attempt to hurt another country.”
He said by attempting to boycott Chinese goods, India will hurt its own citizens more than the Chinese government. “Every essential item that we import from China will become more expensive and the reality is that we cannot find credible domestic alternatives overnight.”
On curbing Chinese investments, he said, “Chinese investment is a lot trickier than import of goods, as in many cases, it is impossible to distinguish between a private player and the Chinese government.”
“Nonetheless, at a time when India’s investment rate is low and falling, it would be unwise to turn away investments. Therefore, instead of a blanket ban on Chinese investments, the Indian government can use a lot more discretion based on the sector and the level of investment. Sensitive sectors such as banking, telecommunications and defence should attract greater scrutiny, while investment in ‘dumb’ infrastructure such as roads can get an easier pass,” he said.
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