India has to build good relations not only with China but also and particularly with all countries bordering China. We may further strengthen out ties with Russia,Japan and give special attention to Bhutan, Nepal and Afghanistan but with Myanmar, Pak, Uzbekistan, Kyrgyzstan, Mongolia, Taiwan, Vietnam, Laos and Thailand. PRC has offered to fund $300 billion towards our $1 trillion infrastructure over 12th Plan. We may use it in areas we consider appropriate. With rising wages China's competitiveness is on decline and an opportunity for us to boost our exports.So no harm in attending Panchsheel anni. or cooperating on international fora. But we must seize and use opportunities and offers beneficial to us.
Re: Diplomatic jargon is difficult to decipher
by Ramesh on Jun 07, 2014 01:01 AM
Jagadish,
What China offers is a loan. This money has to be paid back probably for an appreciating Yuan. It may not be the cheapest source of fund available in the market. Besides, the risk has to be fully borne by the government.
For infrastructure funding, better models may be available where investors bear the risk. Government can thereby reduce its fiscal deficit, finance social sector investments better and strengthen Indian Rupee.
Indian GDP is around $2 Trillions, hence saving would be around $400 billion each year. Gradually strengthening long term prospects of INR can invite more than $60 billion, risk bearing investments at attractive rates from FIIs. This may be more viable option for India, and comes with less political strings attached.
Re: Diplomatic jargon is difficult to decipher
by Solomon S on Jun 07, 2014 10:52 AM
Is it possible for us to bring down the Trade deficit with China...Even, we are not doing great Business with China from IT Industry
China cannot act like an East Indian Company to India
