BEIJING:
The new Indian government's promise to
deepen economic
reforms will create ripple effect in Asia and may
prompt China to
open-up more to retain its advantages, a leading daily said.
"The
rise of Asia is incomplete without the participation of India. As a regional
power, India's openness will bring a ripple effect to the region. It will also
stimulate China to put more efforts in its own opening up," the article in
the state-run Global Times said today.
"Healthy
competition between the two regional powers in Asia will promote the continuous
integration among Asian
economies and form a global economic engine with powerful driving
forces," it said.
The
"bringing in" and "going out" of the investment are
complementary.
Whether
India's foreign
investment goes smoothly or not depends on how many countries can be
allowed to participate in the economic development process of India, it said.
Citing ASEAN trade
with China which crossed USD 400 billion last year compared to India's which is
around USD 76. 4 billion, it said, "China's advantages in manufacturing
have contributed to the large scale of trade between ASEAN and China. But the
more important reason is that China's degree of openness to ASEAN is higher
than India."
ASEAN
countries will formally launch a unified common market in 2015.
By
then, the integration of market will be enhanced, competitive strength and
capability of attracting investment of ASEAN will also be increased, it said.
"However,
if India wants to take advantage of the platform provided by ASEAN to develop
its economy, it has to increase its degree of openness," it said.
"India
is one step behind China in participating in the integration of regional trade
and economy. This lagging step affects the capability of the Indian economy in
sharing the fruits of development of the regional economy," it said.
"Currently,
the Modi
government wants to catch up by deepening reform. This behaviour is
helpful to neighbouring countries including China," it said.
"If
revolutionary changes can be carried out in India's policies of attracting
investment, the economic integration of Asia as a whole will be
benefited," it said, citing China's proposal for establishing a
Bangladesh-China-India-Myanmar Economic Corridor.
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Saigon Business Corporation Pte Ltd (SBC) is incorporated
in Singapore since 1994.
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