Asia

China-backed Pak being set up as challenger to India in auto components, textiles

The rapid development of Pakistan's textile industry is a microcosm of China's efforts to boost local economy and manufacturing through the CPEC.

New Delhi, India is likely to face rising competition from Pakistan in sectors including auto parts and textiles in the near future, Chinese state media has claimed.

“Of course, some may argue that there is still a considerable gap between India and Pakistan in terms of manufacturing strength, but with the improved BRI connectivity as well as the steadily growing investments by Chinese companies in Pakistan, the South Asian nation is well poised for a rapid facelift,” the Global Times said in a report.

“And this could pose a new challenge for India as it is likely to face rising competition from Pakistan in sectors including auto parts and textiles in the near future.”

Since 2015, the China-Pakistan Economic Corridor (CPEC) has directly created more than 75,000 jobs in Pakistan. In the meantime, China has also invested heavily in various projects in the country. It is conceivable that once the CPEC construction is fully completed, more investment will be drawn to the country, which will be greatly conducive to improving Pakistan’s manufacturing base, the report said.

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“By comparison, it is undeniable that India has a number of advantages to become a manufacturing power, but it also lacks some fundamental basis for long-term manufacturing development. Some of its most apparent weaknesses such as poor infrastructure, undereducated labour force and trade and investment protectionism will likely be a drag on the long-term growth of Indian manufacturing industry,” the Global Times reported.

To a certain extent, the rapid development of Pakistan’s textile industry is a microcosm of China’s efforts to boost local economy and manufacturing through the CPEC, it added.

For a long time, poor transportation conditions and energy shortage were the two major bottlenecks restricting Pakistan’s economic development and societal progress. The CPEC construction has greatly improved the transportation, power supply, road communication and other infrastructure along the Belt and Road Initiative (BRI) route.

Increased investment Chinese textile companies made in Pakistan as well as the improved connectivity brought by the BRI construction have also contributed to the development of the local textile industry, the report said.

Nevertheless, the economic and social cooperation between China and Pakistan, represented by the CPEC, has been advancing in an orderly manner, playing a significant role in supporting and ensuring Pakistan’s economic and social development, it added.

Source
IANS

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