Open Seminar “Can India replace China as a global factory?”

On April 27, 2023, an open seminar was held at the Faculty of World Economy and International Affairs within the framework of the project "India and the challenges of Global Politics", which was devoted to the possibility of India being as economically attractive as China.

The speaker at the seminar was Dr. Sudip Chakraborty from North Bengal University.

At the beginning of the conference, the first word was given Dr. Olga Solodkova, Professor of the School of International Regional Studies who noted that India has every opportunity to become a leading state in terms of economic growth and the potential of the workforce.

The seminar was also attended by Dr. Olga Kharina, Research Fellow in the School of International Regional Studies, students who work on the project "India and the Challenges of Global Politics" Anastasia Lachinova and Sofia Zborovskaya, as well as students of the Master’s program "International Relations: European and Asian Studies" and guests from the HSE and other universities.

Professor Sudeep Chakraborty noted that now China is going through several crises – a crisis related to Covid-19, and a crisis related to the confrontation with the United States. A step back in the economy occurred because of Covid-19. The whole world has moved on, having passed the lockdown period, whereas in China it continues to this day, even after the pandemic. Strained US-China relations since the beginning of the Trump era in the US have led to a trade war.

The professor stressed that many large companies are investing in China, for example, the world-famous Apple Company. Manufacturers in various fields consider it economically advantageous to work with China.

If we turn to history, Mao Zedong was concerned that communism could be destroyed by interaction with the United States. However, later the situation changed, because Deng Xiaoping's position was different – he opened the Chinese economy to global investors. Tax policy and inexpensive prices attracted foreigners to cooperate with China.

However, now there are changes: many foreign companies are leaving China. For example, the same Apple Company is moving from China to other countries, including India, changing the location. Alternatives to the Chinese market are emerging.

In addition, the problem of qualification also manifests itself. Many graduates of educational institutions in India do not have the necessary skills to work in relevant fields. Therefore, the current educational policy is aimed at training the necessary skills starting from the earliest years of study.

In conclusion, Professor Chakraborty said the following: "To replace China as a manufacturing hub, India needs to develop all the necessary infrastructure, train qualified specialists, and create an environment."

The seminar ended with a question and answer session.

This event is an output of a research project “India and the Challenges of Global Politics”, implemented as part of the HSE University Project Group Competition at the Faculty of World Economy and International Affairs.