Economic troubles for China will not be great news for
India, which cannot be in ‘sweet spot’ as there would be more negatives than
positives from the ripples of a Dragon dragging the shaky world economy,
Assocham has warned.
“While it is true that fall in commodity prices, linked to
China’s slow demand, is a positive for India, the development is not all that
positive for a host of metal and iron ore producers such as SAIL, Tata Steel,
NMDC and upstream oil producers.
A sharp fall in iron ore, steel and copper prices has equally
hit the Indian manufacturers as any other company in the world,” said an
Assocham paper, which analysed the impact of the problems in China on Indian
If a bubble-like situation erupts from China, the impact will
be seen all around the world to which the Indian economy is too well entrenched
into, the Assocham paper has pointed out. China is number one merchandise trader
in the world with over $4.16 trillion worth of trade, followed by the U.S. with
$3.9 trillion. “If there is a shake-out, a slew of sectors in the global
markets, which get their sizeable chunk of revenue from China - tourism, hotels,
education, health, and others - will feel the immediate impact.
With $94 billion imports and barely $12 billion exports,
India runs a huge trade imbalance with China, the paper has added.
Prime Minister Narendra Modi pitched for early
implementation of the $10-billion TAPI gas pipeline project during his talks
with Turkmenistan President Gurbanguly Berdimuhamedov as the two countries
inked seven pacts to ramp up engagement in key areas such as defence.
During their comprehensive talks, both leaders resolved to
step up efforts against the cross-border threats of terrorism, organised crime
and illegal drug-trafficking as they reaffirmed their commitment for a stable
The Prime Minister identified terrorism as a major threat
facing the region, and said, “We have shared interest in a peaceful and stable
Afghanistan and Central Asia. We have also common purpose in combating terrorism
and extremism in our region.”
Terming the TAPI (Turkmenistan-Afghanistan-Pakistan-India)
project a significant initiative in the relationship between the two countries,
Mr. Modi said he conveyed to Mr. Berdimukhamedov that multiple options such as
the possibility of a land-sea route through Iran for the pipeline should be
The TAPI gas project is an over 1,800-km pipeline with a
design capacity to supply 3.2 billion cubic feet of natural gas a year from
Turkmenistan to Afghanistan, Pakistan and India.
- The pipeline is expected to be operational by 2018 and will carry gas from
the Galkynysh field of Turkmenistan that holds gas reserves of 16 trillion cubic