India has not ignored business with China but need to define the problems and take caution today, said Minister of External Affairs (MEA) Dr S Jaishankar on May 17.
Speaking at a panel discussion at CII Annual Business Summit in New Delhi, Jaishankar said that as far as national security goes, it is more complex with China. "If peace and tranquility in border ares disturbed, would you do business with someone who has barged into your turf. If a country has gone back on written agreements and is doing something on our borders, how can we then say that the business world will continue as normal."
However, while pointing out the issues, Jaishankar also noted that business (with China) has not stopped. "Business in the country has not ignored China. We need to define the problems, and take caution today."
Recently, at an event in Kolkata Jaishankar had noted that there is an economic challenge which is due to "neglect of the manufacturing and infrastructure sectors in the previous years. "Why is Indian business buying so much from China... Is it good to be so dependent on some other source?"
Highlighting more, Jaishankar said we have to put a national security filter, i.e, in a business proposition, we have to evaluate certain national security sensitivities. "Where China is concerned, we will still encourage people to manufacture, source in India. But we have not prohibited to work with China, but there is an Indian alternate I'd rather you work with them. It's good for national security," he added.
Jaishankar also said that another issue built up over last 20 years is trade imbalance. "We have a problem with the business community in India. Business is making price point choices. In the long term, we have to see how to encourage business to do more domestic sourcing. We have to encourage production in India while encouraging businesses to source in India. It is long and painful because we are actually making up for 20-30 years of neglect of manufacturing."
The relations between India and China are strained since the June 2020 clashes in Galwan valley.
Last week, Jaishankar had said that New Delhi hopes for a resolution of the remaining issues with Beijing. The minister asserted that a return to normal bilateral ties hinges on peace and tranquillity at the border.
Further, on relations with other neighbouring countries, Jaishankar said that India is for trade deals if they work foe the country. "Great improvements have happened in regional connectivity. Bangladesh, Nepal has road, rail connections. Access to ports has improved," Jaishankar said, adding that these have great consequences for our eastern and NÉ states. In case of Sri Lanka, working on three proposals --, Land bridge, Fuel pipeline, Rail bridge. These will give market access to Indian products, the minister added.
He also said that with Maldives, development projects are doing well, things are looking constructive.
Moreover, in terms of Pakistan's terror policy, Jaishankar said, "They have to make up their mind. After 2019, many steps by Imran Khan government has downgraded relations."
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