Source: Global Times
The US "Eurasia Review" website article on December 16, titled: "India's Industrial Dream Faces the Test of Chinese Reality". India is at a critical moment in its economic development. With multinational companies seeking to diversify supply chains and reduce reliance on China, India indeed has the opportunity to become an important global manufacturing and export hub. However, mere opportunities are far from enough. China's rise as a global manufacturing power is the result of decades of precise policies, massive industrial scale, and consistent implementation. For India, the real challenge lies in understanding the depth of this transformation and assessing how much distance it still needs to cover.
World Bank data shows that China currently contributes nearly 30% of global manufacturing output, while India accounts for about 3%. In monetary terms, China produces over $5 trillion in manufactured goods annually, compared to about $500 billion for India. The gap in trade performance is even more pronounced. Despite U.S. high tariffs and technology restrictions, China achieved a $1 trillion trade surplus in the first 11 months of 2025.
The electronics industry highlights this contrast. China produces about 70% of the world's smartphones and is the largest exporter of electronic products. While India's electronics exports are on an upward trend, this significant progress for India is just a normal situation for China. Chinese companies export smartphones worth hundreds of billions of dollars annually, offering highly competitive prices due to economies of scale. This pricing advantage often undermines India's export ambitions, even as global companies expand their assembly operations in India.
China's advantage lies in its dense and highly integrated industrial ecosystem. The export of electronic products from a single city like Shenzhen exceeds that of the entire India. In China's main manufacturing areas, smartphone or electric vehicle manufacturers can almost always obtain all components nearby, thus reducing costs, accelerating production, and achieving rapid innovation. Although clusters in cities such as Noida, Chennai, and Pune in India are improving, their supply chains remain fragmented and highly dependent on imported components.
There are also gaps in logistics. China has gradually reduced logistics costs through efficient ports, railway networks, and highways. However, India's higher logistics costs weaken its export competitiveness. India has invested heavily in infrastructure, but problems such as congestion delays and regulatory obstacles continue to increase manufacturers' costs.
Rare earths add another advantage for China. These minerals are essential for electric vehicles, wind turbines, defense systems, and advanced electronic devices. India's dependence on imported rare earths (mainly from China) has already caused disruptions in its electric vehicle and electronics industries when supply delays occur. Without domestic processing capabilities and key mineral security, India's manufacturing ambitions are fragile.
Institutional factors also pose constraints. For a long time, China's administrative system has adapted to fast approvals, coordinated planning, and deep local government support for industrial development. Indian companies still face obstacles such as land acquisition, environmental permits, and regulatory uncertainty. Even obtaining a business visa for Chinese technicians takes several months.
India's opportunities do exist. But the experience of China shows that becoming a manufacturing giant requires not just minor adjustments, but decades of scaled-up construction, disciplined management, and long-term strategic planning. China's rise as a manufacturing superpower was not accidental. If India wants to build the next global manufacturing center, it must advance the transformation with urgency, clear goals, and the determination to confront structural challenges. (Author: K.S. Venkatachalam, translated by Qiao Heng)
Original: toutiao.com/article/7584964527742026281/
Statement: This article represents the views of the author.