Chinese-Dragon
RETIRED TTA
- Joined
- Jul 9, 2010
- Messages
- 33,932
- Reaction score
- 52
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Our primary focus should be to restore trade balance which got skewed against us for economic mismanagement.
When a country is building up a national manufacturing base, they need to import a lot of capital goods in order to increase their overall production/output.
So in this scenario, a large trade deficit is unavoidable in the short-term. But in the long-term it should turn into a trade surplus.
The problem here... is that the vast majority of India's trade deficit is due to importing oil/gold and consumer goods, not capital goods in the required amount to build a national manufacturing base.
Even a country like China today, with the world's largest manufacturing base, we ordered tens of thousands of industrial robots this year alone.
Luckily, we are at a stage where we can produce the required capital goods domestically, and we even export them in huge numbers.
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