Global Context and Local Policies
Chapter 12: India
The Indian Government is in a dilemma. Should India follow the People’s Republic of China’s transport and logistics strategy manifest in vertically integrated multinational supply chains, a large share of international trade in intermediate and unfinished goods, and openness to foreign domestic investment? Or, prompted by the Global Financial Crisis (2008–09), should India reduce its export dependence on Europe and North America and capitalize upon the prospect of increasing cross-border trade with the Asian-Pacific region, through a comparative advantage in the manufacture of motor vehicles, textiles and garments, information technology (IT) and IT-enabling services? If India is to become a manufacturing powerhouse like China it will need investment in transport and communications infrastructure for just-in-time (JIT) delivery and opportunities to increase its participation in the global production and trading system. Should the Indian Government adopt the counter-strategy of reducing export dependence on Europe and North America to offset volatility, it will need to capitalize on its 1991 ‘Look East’ policy and forge stronger links with the Asian-Pacific Rim to accommodate increasing trade, derive synergies from the fragmentation of production networks, and offer greater access to regional markets for seafood, fruit and vegetables, motor vehicles and apparel (Bhattacharyay, 2010).
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