In both business and political circles, a question is often asked, 'How can India correct its trade asymmetry with China?' The answer, paradoxically, lies in greater Chinese investment.
China's growth has been slowing. GDP grew only 4.3% last quarter, and retail sales - indicator of domestic consumption - rose only 1% in June. As the West grows less willing to absorb Chinese overcapacity, China's next move may be to export the factory itself - capital, technology, brands and production. India now has to decide whether it will host this relocation, on its own terms, or whether it will watch others like Vietnam and Mexico grab it, instead. It must also assess whether hosting, done right, can finally correct the imbalance India has lived with for two decades.
