The Wall Street Journal website published on December 29, 2023. It was published in India to shoulders in China. Developing infrastructure was a key article. The author is Mega Mandvia.The full text is as follows:
In the next few years, India has become a visible division of ambitions to be comparable to China ’s manufacturing center.One of the main questions is that India can build the required infrastructure at a fast speed to truly seize the opportunity.Although there have been signs of progress recently, the limited financial space of the Indian government means that more measures need to be taken to attract private investment.
After decades of failure, India is experiencing a manufacturing revival led by Apple and its suppliers.In the fiscal year ended in March 2018, India was still a smartphone importing country; in the last fiscal year, India had become a net exporter of smartphones.Australia's McGli Bank said that about half of India's smartphones are Apple products.
Apple is opening a road for other manufacturers, which may still be watching the "China +1" supply chain strategy centered on India.India's infrastructure is weak, such as road pits and trains, which have discouraged many people.India's actively launched by government -funded infrastructure upgrade plans may alleviate some concerns.
India's infrastructure construction plan is planned to invest 111 trillion in the fiscal year of 2020 to 2025, India's rupee (about 1.33 trillion US dollars) for infrastructure construction.Energy, highways, urban infrastructure and railways account for most of the planning projects.According to the information provided by McGear Bank, the construction speed of the Indian National Highway is six times the level of the level from 2002 to 2010. The average speed of freight trains has increased by more than 50%in the past two years.It has decreased by 80%since 2015.According to data from Gavica Consulting, India's highway network has increased by about 40%over the past ten years to 6.3 million kilometers, ranking third in the world.
India has not had good management of large -scale infrastructure projects in the past, but it has also taken some measures to reduce the problem of delay and cost overrouts by streamlining administrative procedures.Nevertheless, the official data in October 2023 showed that in the 1788 large infrastructure projects monitored by the central government, nearly half of the project progress lags behind the plan and costs about 17%.
India is starting to learn from China's infrastructure model, but there is still a long way to go.According to the data of Bernestein Research Company, the proportion of China's fixed capital formation to GDP (GDP) reached a peak of 45%in 2009, compared with only 25%in 1990.According to data from Bernestein Research Company, the number of India is currently about 30%, which is higher than 20%in the first decade of this century.
In addition, although India may want to further increase public investment in infrastructure, it is probably difficult to reach China's level.
Chasing China may not mean to copy the Chinese model.In order to realize the ambitions in the manufacturing industry, India must find its own development path and upgrade the domestic loud infrastructure.
