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. 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.
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.” if India wants to take advantage of the platform provided by ASEAN to develop its economy, it has to increase its degree of openness.
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. Currently, the Modi government wants to catch up by deepening reform. This behaviour is helpful to neighbouring countries including China.
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 concluded, citing China’s proposal for establishing a Bangladesh-China-India-Myanmar Economic Corridor.