'Indian Growth Cannot Be Built On Chinese Efficiency': EAM Jaishankar Backs Creation Of Domestic Vendor Chain For Manufacturing

External Affairs Minister S Jaishankar called for the creation of a robust domestic vendor chain for the manufacturing sector, rather than relying on Chinese efficiency to fuel Indian growth.

Speaking at the launch of the book "Made in India: 75 Years of Business & Enterprise" by India's G20 Sherpa Amitabh Kant on Wednesday (10 May), Jaishankar said, " I think we need to stop looking for a China fix. Indian growth cannot be built on Chinese efficiency".

"If we are really to sustain and take the economy to a different level we have to create a kind of domestic vendor chain that a serious manufacturing economy will do," he added.

He also said that there is no major country in the world which has sustained or enhanced its global position without some commensurate buildup of manufacturing.

"I have always believed that this focus on services was actually an elegant excuse for being incompetent in manufacturing," he said.

Jaishankar argued that the production-linked incentive scheme (PLI) was India's effort to raise manufacturing capabilities in the country.

The Minister added that India needs to focus on manufacturing to take advantage of opportunities in the post-pandemic world.

Jaishankar highlighted that the country will have to think through its growth strategy and domestic solutions against the backdrop of global challenges, citing the Covid experience and the strategy adopted to deal with it.

"In the name of opening the economy and globalizing, we should not end up de-industrializing this country. We should not allow a level playing field in this country for others to subside their rich. That's economic suicide. We need to be clear that every country must support its manufacturers, must support its businesses. We mustn't allow other businesses enjoy advantages in our country at the expense of others," said Jaishankar.

The Minister also emphasised the need to look at the economy from a strategic perspective and identify the right partners.

"I see 'Make in India' not as an economic programme, not as a manufacturing program. I see it as a strategic statement," he added.