Its not that ALL of India's Infrastructure will be met by China, but that when a successful foreign power shows what it can do....... it motivates the 90% of the Infrastructure providers from India to do better. ....and explore the extreme possibilities.
Some of the Infrastructure designs are sheer fantastic, but who will dare to build such things?
Xi Jinping arrives today, China set to get bigger role in infrastructure and water
India is back in the great game in Asia. PM Narendra Modi's blitzkrieg through three toplevel summits in September — Japan, China and US — is intimately tied to his vision of the India he wants to create.
After affirming close ties with Japan earlier this month, Modi flies into Ahmedabad on Wednesday for arguably his most important summit. Because it's with China that India will test its strategic opportunities and challenges.
The government promises a rich menu of agreements during the Xi visit. A sample of what may be in store points to a much bigger Chinese presence in the Indian development story.
Two industrial parks in Gujarat and Maharashtra to focus on the power sector and auto components financed by Chinese banks, bringing Bank of China into India for the first time.
If they pass muster, India can invite more Chinese investment as Modi tries to revive the economy and breathe life into a moribund manufacturing sector. The PM understands while India may have some niche capabilities in software and pharmaceuticals, no country has taken off without being a manufacturing power.(That is the only source of employment, besides Infrastructure which will give INFLATION FREE BOOST to the Indian economy and jobs)
With water a top priority for Modi, there's interest in getting Chinese companies to finance and dredge canals and reservoirs to help agriculture and build India's water storage capacities. High-speed railways promise to take up a lot of Chinese investment, as India plans to upgrade tracks, stations and coaches.
Beijing's slowdown can be offset by India's growth opportunity. India will have to play two levels at once — mass manufacturing with China's help and high quality, next generation innovative stuff where Japan and Germany come in.
The Modi government must overcome Indian institutional wariness to an increased Chinese presence. The China opportunity quickly comes up against the Chinese challenge — on the border, inside India's cyber networks, via Pakistan and on the high seas. In a depressing replay of Depsang and the Vietnam oil rig episodes, Xi's visit has been preceded by a reported Chinese intrusion in Ladakh. The PLA pin-pricks, which are rarely "local" incidents, have put an added edge to bilateral ties and underscored India's interest in a quick border settlement.
The conventional wisdom is Xi and Modi being the most powerful leaders of their countries can work out a border deal. Modi has to convince Parliament, but that may be easier than the delicate dance Xi must perform with PLA. Xi may be the unquestioned head of the Chinese military, but he needs PLA on his side as he undertakes tough internal restructuring, targets party corruption and redirects China's export-led economy .
It's not clear whether a territorial deal involving some concession can be easily sold.
In the last couple of years, China has abandoned the pretence of its "peaceful rise", building an expansionist, aggressive persona that's sent Vietnam, Philippines, Japan, India all working to "balance" the dragon in the room. This comes when the US is up to its ears in crises elsewhere -Syria, Iran, ISIS, Ukraine and Af-Pak.(ALL Created by the USA itself---to get the military industrial complex going)
India therefore must create its own strategic space in Asia.One key element is to ensure "distance" between Pakistan and China. Xi's decision to drop the Pakistan leg of his trip should not be seen as a Chinese change of heart.
It's a bonus.