WEBVTT - China’s Tech Grip Threatens India’s Manufacturing Ambitions 0:00:02.720 --> 0:00:07.200 Bloomberg Audio Studios, podcasts, radio news. 0:00:09.720 --> 0:00:15.400 Last year, India's largest company, Reliance Industries, quietly sent hundreds 0:00:15.440 --> 0:00:19.360 of executives and engineers to China. They fanned out across 0:00:19.400 --> 0:00:23.680 industrial hubs on the mainland, including Shinzen and Wushi. They 0:00:23.760 --> 0:00:27.159 were in a race against time. China was about to 0:00:27.240 --> 0:00:31.600 restrict exports of a range of vital technologies, and Reliance 0:00:31.720 --> 0:00:34.800 needed to secure critical equipment and tech to build a 0:00:34.880 --> 0:00:38.760 massive battery factory back home. The employees had just over 0:00:38.800 --> 0:00:41.680 a month to pull it off before those export controls 0:00:41.760 --> 0:00:43.040 were supposed to kick in. 0:00:43.720 --> 0:00:45.520 And what they're trying to do is just make sure 0:00:45.520 --> 0:00:48.320 that the machines they need are first manufactured in time, 0:00:48.680 --> 0:00:51.559 and once they're manufactured, that they actually passed customs and 0:00:51.560 --> 0:00:54.520 they're put on ships and they are moving towards India. 0:00:55.120 --> 0:00:58.800 Alicia Sachdev is Bloomberg's business reporter based in New Delhi. 0:00:59.480 --> 0:01:02.320 She says a race to secure these machines was just 0:01:02.520 --> 0:01:03.840 one piece of the puzzle. 0:01:04.440 --> 0:01:07.640 Well, then now after is something beyond equipment. They need 0:01:07.680 --> 0:01:10.880 access to the know how that makes those machines actually work. 0:01:11.319 --> 0:01:14.200 And that's where Reliance is really stuck now, is to 0:01:14.240 --> 0:01:17.000 really be able to have access to technology even though 0:01:17.040 --> 0:01:17.920 it has the machinery. 0:01:20.840 --> 0:01:25.240 Reliance needs both the equipment and the know how expertise 0:01:25.319 --> 0:01:29.199 that China dominates in the field. The problem is China 0:01:29.360 --> 0:01:31.319 has no plans to share any of it. 0:01:31.360 --> 0:01:33.759 In minutes, so we've got some announcements from China. 0:01:33.800 --> 0:01:37.800 They're looking to implement export controls on rress items and 0:01:37.880 --> 0:01:40.400 also ones that are related to tech. 0:01:40.880 --> 0:01:43.880 China wants to really ring fence the dominance that it's 0:01:43.920 --> 0:01:46.600 built over the last decade. It does not really want 0:01:46.680 --> 0:01:51.200 to lose its edge that it's built painstakingly in manufacturing sectors. 0:01:51.280 --> 0:01:54.200 And for Indian companies which have ambitions to build out 0:01:54.200 --> 0:01:56.080 battery plants for example, time is off. 0:01:56.080 --> 0:02:00.800 The essence the struggle of Reliance and India's back battery industry, 0:02:01.000 --> 0:02:04.600 it's just one piece of a much bigger story. India 0:02:04.680 --> 0:02:09.120 has set an ambitious goal to become a global manufacturing powerhouse, 0:02:09.440 --> 0:02:11.359 an alternative to China. 0:02:11.520 --> 0:02:14.119 Your line Custer Make in India. 0:02:15.919 --> 0:02:18.720 Back in twenty fourteen, Prime Minister and re Render Modi 0:02:18.880 --> 0:02:22.160 launched the Make an India initiative. It promised to grow 0:02:22.200 --> 0:02:26.360 the country's manufacturing sector and create millions of jobs, and 0:02:26.440 --> 0:02:30.120 yet even after billions were invested under the initiative, India's 0:02:30.160 --> 0:02:36.520 manufacturing in critical sectors is now even more dependent on China. 0:02:36.720 --> 0:02:39.760 What the Reliance example really has shown us is that 0:02:39.919 --> 0:02:44.080 in key up and coming sectors like batteries, like sophisticated 0:02:44.080 --> 0:02:48.280 electronics manufacturing, China really holds all the choke points, whether 0:02:48.360 --> 0:02:51.840 it's the supply of fraw materials, whether it's critical machinery, 0:02:52.240 --> 0:02:54.960 whether it's the technology and know how, all of that 0:02:55.040 --> 0:02:57.200 sits concentrated in China. 0:02:58.080 --> 0:03:00.760 In the end, thanks to the fast war of its team, 0:03:01.120 --> 0:03:04.560 Reliance managed to secure more than a billion dollars worth 0:03:04.600 --> 0:03:10.079 of equipment. But Reliance is India's biggest company. Other firms 0:03:10.240 --> 0:03:11.440 haven't been so lucky. 0:03:12.080 --> 0:03:14.760 We are kind of in this race with our hands 0:03:14.840 --> 0:03:17.720 teined behind our backs. The US, for example, which has 0:03:18.200 --> 0:03:22.280 a lot of tech expertise, China, which has manufacturing expertise. 0:03:22.720 --> 0:03:25.400 In India, we kind of have neither at this point 0:03:25.440 --> 0:03:28.360 in time when it comes to these advanced sectors. So 0:03:28.400 --> 0:03:31.359 that's really where our dependence on China kind of holds 0:03:31.400 --> 0:03:31.760 us back. 0:03:40.040 --> 0:03:43.480 Welcome to the Big Take Asia from Homemberg News. I'm Wanha. 0:03:44.000 --> 0:03:46.240 Every week we take you inside some of the world's 0:03:46.240 --> 0:03:50.240 biggest and most powerful economies and the markets, tycoons, and 0:03:50.400 --> 0:03:54.480 businesses that drive this ever shifting region. Today, in the 0:03:54.520 --> 0:03:59.320 show India's Manufacturing Dream and Why I Can't achieve it 0:03:59.640 --> 0:04:03.400 without China, we look at how corporate India is navigating 0:04:03.400 --> 0:04:14.960 a complex geopolitical landscape as it searches for alternatives. The 0:04:15.040 --> 0:04:18.560 factory Reliance is building sits in Jamnagar, a city on 0:04:18.600 --> 0:04:22.760 India's west coast. Mukesh and Bani Reliance, as chairman and 0:04:22.839 --> 0:04:26.160 Asia's richest man, has a bold vision for this place. 0:04:26.760 --> 0:04:30.200 His company is building a sprawling battery plant here the 0:04:30.279 --> 0:04:35.200 foundation of Ambani's green revolution. Here's Ambani's youngest son, Anant 0:04:35.400 --> 0:04:38.280 Reliance as executive director, talking about it. 0:04:38.279 --> 0:04:42.080 It will be unmatched globally in size, scale and integration. 0:04:42.839 --> 0:04:47.599 Five million manners of engineering, forty four million square feet 0:04:47.760 --> 0:04:51.719 of building area, equivalent to four times the size of 0:04:51.760 --> 0:04:53.760 the Tesla Giga factory. 0:04:53.760 --> 0:04:56.840 They say this would be capable of producing everything from 0:04:56.960 --> 0:05:00.800 solar panels to litha min cells and then trees for 0:05:00.960 --> 0:05:04.359 energy storage, even green hydrogen and fuel cells. 0:05:04.720 --> 0:05:09.440 Bloomberg's Alisha Satchdev says this vast renewable energy complex is 0:05:09.480 --> 0:05:12.800 an ambitious plan, but reliance is running up against a 0:05:12.880 --> 0:05:17.520 problem as old as global industry itself. Technology transfer. 0:05:19.200 --> 0:05:22.760 Quite simply, technology transfer is when a company or when 0:05:23.000 --> 0:05:26.080 an entity shares the knowledge and the know how needed 0:05:26.240 --> 0:05:30.280 to manufacture something. So it's not just machines, but the processes, 0:05:30.480 --> 0:05:32.679 the training, the operational ecosystems. 0:05:33.320 --> 0:05:36.560 China understands this well. Back in the nineteen nineties and 0:05:36.600 --> 0:05:40.640 two thousands, it used mandatory joint ventures as a way 0:05:40.720 --> 0:05:45.160 to learn from foreign companies in key industries. It required US, 0:05:45.360 --> 0:05:49.760 European and Japanese firms to share their technology in exchange 0:05:49.800 --> 0:05:54.360 for access to the Chinese market. Over time, those partnerships 0:05:54.440 --> 0:05:59.400 help Chinese companies absorb, refine, and eventually master know how 0:05:59.520 --> 0:06:03.160 in industry like cars, rare earths and batteries. 0:06:03.839 --> 0:06:06.920 In cold light of day, the supply chain for battery 0:06:06.960 --> 0:06:10.400 cells sits entirely in China, whether it's raw materials from 0:06:10.440 --> 0:06:14.560 lithium to cobald to the technology that of course you 0:06:14.640 --> 0:06:16.560 need to make the cells, to the equipment and the 0:06:16.560 --> 0:06:19.720 tooling you need to make the cells also. So that's 0:06:19.760 --> 0:06:22.440 the kind of dependence that we're looking at. And there 0:06:22.440 --> 0:06:27.880 has been this trajectory of China curbing the transfer of technology. 0:06:28.560 --> 0:06:32.520 In October, China timed export controls on some parts of 0:06:32.520 --> 0:06:36.560 the battery supply chain. Some lithium ion batteries can't leave 0:06:36.600 --> 0:06:40.359 the country without government approval. These curbs grew out of 0:06:40.400 --> 0:06:43.800 the tear for war with the US. China has since 0:06:43.960 --> 0:06:46.480 paused its ban on exports of rare earths and other 0:06:46.520 --> 0:06:49.760 critical materials as part of a broader effort to ease 0:06:49.880 --> 0:06:55.800 trade tensions, but still India continues to be largely cut off. Now, 0:06:55.839 --> 0:06:59.160 none of these measures were aimed specifically at India, but 0:06:59.160 --> 0:07:02.760 Alicia says that the spillover has hit India especially hard 0:07:03.200 --> 0:07:05.800 and in many ways the country has emerged as one 0:07:05.839 --> 0:07:06.960 of the biggest losers. 0:07:07.360 --> 0:07:10.960 And that's because while other manufacturing rivals, like in Japan 0:07:11.040 --> 0:07:14.800 or South Korea, for instance, already have some kind of 0:07:15.200 --> 0:07:18.760 leg up in manufacturing tech, India is beginning a lot 0:07:18.800 --> 0:07:22.000 of these industries from scratch, and therefore time is off. 0:07:22.160 --> 0:07:26.920 The essence, the more difficulties we face in actually accessing 0:07:26.960 --> 0:07:30.320 this technology, the gap will keep on widening and it 0:07:30.360 --> 0:07:32.160 will become harder for US to catch up. 0:07:33.640 --> 0:07:38.000 India has set an ambitious goal for advanced battery cell manufacturing. 0:07:38.360 --> 0:07:41.280 Over the next five years, Indian companies plan to build 0:07:41.320 --> 0:07:45.280 a combined one hundred and seventy eight gigawa hours of capacity. 0:07:46.160 --> 0:07:50.200 That's enough to fully charge nearly three million teslas or 0:07:50.240 --> 0:07:53.880 to power around seventeen thousand American homes for a year. 0:07:54.720 --> 0:07:57.280 But Alicia says it's a very distant goal. 0:07:57.720 --> 0:08:00.640 So out of that one seventy eight gigawat that has 0:08:00.720 --> 0:08:04.560 been announced in India, what we do have at present 0:08:05.160 --> 0:08:08.280 is only one gigaward hour, So it's such a small 0:08:08.400 --> 0:08:12.200 fraction of the ambition that India has outlined for itself. 0:08:12.680 --> 0:08:15.119 Almost all the electric vehicles that are sold in India, 0:08:15.120 --> 0:08:18.320 and there are millions of them every year, almost all 0:08:18.400 --> 0:08:23.760 of them bank entirely on important battery cells. 0:08:23.040 --> 0:08:27.280 And beyond batteries, Alicia, where else does China hold kind 0:08:27.280 --> 0:08:31.040 of this strategic squeeze that we've been talking about, well. 0:08:30.920 --> 0:08:34.439 Pretty much all of the core industries that India is 0:08:34.440 --> 0:08:36.760 looking to develop at this point in time. We can 0:08:36.800 --> 0:08:39.360 take a clue from earlier this year. On February one, 0:08:39.520 --> 0:08:42.000 India's Finance Minister and Malassi that I am and delivered 0:08:42.000 --> 0:08:43.520 a speech in the Parliament. 0:08:43.480 --> 0:08:48.440 Scaling up manufacturing in seven strategic and frontier sectors. 0:08:49.000 --> 0:08:52.439 She highlighted seven high tech areas that will form the 0:08:52.480 --> 0:08:56.160 frontier of its manufacturing led growth model. These would include 0:08:56.280 --> 0:09:02.760 advanced chemistry, cells, semiconductors, renewable energy, official intelligence, biotech, space 0:09:02.840 --> 0:09:04.960 tech and defense manufacturing. 0:09:05.600 --> 0:09:09.280 Take semiconductors for example, it's become a big focus for 0:09:09.360 --> 0:09:12.960 the Indian government. The country has committed billions of dollars 0:09:13.000 --> 0:09:17.480 in incentives and subsidies to kickstart chip making plants. The 0:09:17.559 --> 0:09:20.079 problem is it can't do it alone. 0:09:20.559 --> 0:09:23.760 One example that again illustrates the extent of our dependence 0:09:23.920 --> 0:09:27.600 is the Tata Group's advanced chip manufacturing plant in Hulera 0:09:27.800 --> 0:09:30.200 in the western Indian state of good Shad. This will, 0:09:30.200 --> 0:09:32.120 by the way, be the first and the biggest fab 0:09:32.200 --> 0:09:36.640 that India will have in the country, and that itself 0:09:36.640 --> 0:09:40.040 remains dependent on Chinese raw materials like gallium and high 0:09:40.040 --> 0:09:43.400 purity silicon, at least in its initial years. Another area 0:09:43.520 --> 0:09:48.080 where China really dominates in tech is electronics and electronics components. 0:09:48.520 --> 0:09:50.480 So the one big success to all the India has 0:09:50.520 --> 0:09:54.240 had is with Apple. Now, India makes about a quarter 0:09:54.679 --> 0:09:57.440 of Apples iPhones globally, But when you look at what 0:09:57.520 --> 0:10:01.199 India is actually making. We're largely a st the iPhones 0:10:01.240 --> 0:10:03.600 and much of the higher value components in the bill 0:10:03.679 --> 0:10:06.720 of materials that go into that assembly, and all the 0:10:06.760 --> 0:10:11.680 specialized production equipment still traces back to Chinese supply chains. 0:10:12.080 --> 0:10:16.640 Alicia says it's not that China refuses to share technology altogether. 0:10:17.240 --> 0:10:20.800 China does not quite mind sharing technology which is several 0:10:20.880 --> 0:10:26.120 generations behind what it's already pioneering. So that's the kind 0:10:26.160 --> 0:10:27.960 of access that it is okay to give. It's not 0:10:28.000 --> 0:10:31.120 like a blanket man on sharing all kinds of technologies, 0:10:31.160 --> 0:10:34.040 but the really sophisticated tech is something that it does 0:10:34.160 --> 0:10:35.520 want to keep close to home. 0:10:36.240 --> 0:10:39.199 It's a serious roadblock for Prime Minister and arendom Modi, 0:10:39.559 --> 0:10:42.480 who wants to boost manufacturing to make up a quarter 0:10:42.600 --> 0:10:46.920 of India's GDP, but instead of climbing, manufacturer has been 0:10:47.000 --> 0:10:50.560 falling down to just thirteen percent. In twenty twenty four, 0:10:51.240 --> 0:10:54.560 coming up how corporate India is trying to work with 0:10:55.280 --> 0:10:59.559 and around China and what time may be running out. 0:11:13.880 --> 0:11:18.520 The relationship between India and China has never been easy. 0:11:18.640 --> 0:11:22.040 The two countries share a long contested border and a 0:11:22.200 --> 0:11:26.320 history of clashes that continues to shape their mistrust. Today, 0:11:27.160 --> 0:11:30.600 trade between them has grown, and while India has come 0:11:30.640 --> 0:11:33.400 to see China as a vital partner in the region, 0:11:33.920 --> 0:11:38.200 it also regards it as a strategic rival. Bloomberg's Alicia 0:11:38.240 --> 0:11:42.040 Sachdev says that tensions still guide New Delhi's policies. 0:11:42.640 --> 0:11:46.920 Even smaller things like sourcing windshields or like glass parts 0:11:46.960 --> 0:11:51.000 from China. India will impose quality control orders on which 0:11:51.080 --> 0:11:54.400 you know justifiably so because these are parts that can 0:11:54.440 --> 0:11:56.800 be sourced out of India, but companies would prefer to 0:11:56.800 --> 0:11:59.440 buy them from China because of the lower costs. For 0:11:59.520 --> 0:12:03.160 many China Chinese businesses, India is a very lucrative, large 0:12:03.480 --> 0:12:07.320 market for end products. Investing in or accessing the Indian 0:12:07.360 --> 0:12:09.720 market is not exactly something that India has made very 0:12:09.800 --> 0:12:14.240 easy for those businesses. Even something like obtaining visas for 0:12:14.360 --> 0:12:17.360 its citizens is quite hard for the Chinese. At this 0:12:17.400 --> 0:12:21.440 point in time, India hasn't granted weisa to the top 0:12:21.559 --> 0:12:24.480 byd India executive to come and visit India. So it's 0:12:24.480 --> 0:12:27.200 been over five or six years that they've been able 0:12:27.240 --> 0:12:29.360 to even come and see their factories in the south 0:12:29.400 --> 0:12:32.160 of India. So that's the kind of impediment that we're 0:12:32.200 --> 0:12:33.200 really talking about. 0:12:37.000 --> 0:12:39.360 Alicia, I want to ask you something that may seem 0:12:39.440 --> 0:12:43.359 a little obvious, but the Indian government set these ambitious 0:12:43.400 --> 0:12:47.960 goals for high tech manufacturing capacity, right, didn't they realize 0:12:48.000 --> 0:12:52.400 from the outset that they'd need Chinese expertise to reach 0:12:52.480 --> 0:12:53.319 those targets. 0:12:53.960 --> 0:12:56.800 So when India was really just about beginning it's making 0:12:56.880 --> 0:13:01.319 India initiative and formulating these various productions linked incentive programs 0:13:01.360 --> 0:13:04.439 for core industries, I believe it started off with more 0:13:04.840 --> 0:13:08.640 optimism than was possibly warranted at the time. And at 0:13:08.679 --> 0:13:13.079 that time, perhaps what India did not quite fully anticipate 0:13:13.440 --> 0:13:17.280 is that these export controls that China has embugged on 0:13:17.400 --> 0:13:20.840 now wouldn't fold the way they have. Technology was never 0:13:20.880 --> 0:13:23.200 going to be very easy to get, but that had 0:13:23.360 --> 0:13:25.760 really been the order of business for many years. 0:13:26.320 --> 0:13:30.640 In recent weeks, India has eased restrictions on some Chinese 0:13:30.640 --> 0:13:34.200 investment for the first time in nearly six years. Companies 0:13:34.240 --> 0:13:37.600 where Chinese owners hold stakes of ten percent or less 0:13:38.000 --> 0:13:43.439 will now qualify to receive automatic regulatory approval. The hope 0:13:43.520 --> 0:13:47.640 is that this will help boost local manufacturing and possibly 0:13:47.880 --> 0:13:52.880 create space for the technology transfer India badly needs, but 0:13:52.920 --> 0:13:55.880 the door is only partly open. Much of the Indian 0:13:55.920 --> 0:13:59.880 economy remains off limits and only certain types of Chinese 0:14:00.000 --> 0:14:01.199 companies need apply. 0:14:01.679 --> 0:14:04.680 If you look at an auto sector, for instance, where 0:14:04.840 --> 0:14:07.880 India has a thriving local industry which can be disrupted 0:14:07.880 --> 0:14:10.959 by giants like BYD, it is far more skeptical and 0:14:11.040 --> 0:14:14.439 it has actually rejected proposals for investments from a bid 0:14:14.760 --> 0:14:18.559 from a Great Wall Motor. So there is deep strategic 0:14:18.720 --> 0:14:23.200 mistrust between the two countries and that really keeps both 0:14:23.240 --> 0:14:26.240 of them sort of, you know, walking on eggshells around 0:14:26.280 --> 0:14:26.680 each other. 0:14:27.160 --> 0:14:30.240 In the meantime, Alicia says there are other options for 0:14:30.320 --> 0:14:34.680 technology transfer from countries like South Korea, Japan and the West, 0:14:35.040 --> 0:14:36.880 but they come with big trade offs. 0:14:37.560 --> 0:14:40.360 If you go to a South Korea, which Mawny companies 0:14:40.400 --> 0:14:43.320 in India do currently source from, they come at about 0:14:43.320 --> 0:14:46.800 a twenty twenty five percent higher cost than China. That 0:14:47.080 --> 0:14:50.600 is also technology which may not be very suitable to 0:14:50.640 --> 0:14:53.520 the Indian condition. If we're talking about NMC cells or 0:14:53.640 --> 0:14:56.840 nickel manganese co ball cells, these are very high energy 0:14:57.280 --> 0:15:01.600 efficiency and with temperatures soaring in there's always a risk 0:15:01.720 --> 0:15:05.800 of thermal runway incidents, particularly in electric vehicles. So the 0:15:05.800 --> 0:15:09.040 suitability of tech is one aspect, the scalability of tech 0:15:09.080 --> 0:15:11.200 is another aspect, and of course while it all comes 0:15:11.240 --> 0:15:15.000 down too is cost because we are a very highly 0:15:15.080 --> 0:15:18.080 priced and malue conscious market too. And all of those 0:15:18.080 --> 0:15:19.320 things point us back to China. 0:15:20.520 --> 0:15:24.080 For now, Indian corporates have developed an approach to work 0:15:24.120 --> 0:15:28.280 with and around China, flying low on the government radar 0:15:28.520 --> 0:15:30.440 and operating in the gray area. 0:15:31.080 --> 0:15:33.520 One thing that we've actually seen happens a lot these 0:15:33.640 --> 0:15:37.560 days is that deals between Indian and Chinese companies take 0:15:37.640 --> 0:15:41.720 place in third countries. So companies would largely just avoid 0:15:41.840 --> 0:15:44.680 large red flags by meeting in third countries like a 0:15:44.760 --> 0:15:47.400 Singapore in Sri Lanka or Hong Kong or even Thighland 0:15:47.480 --> 0:15:49.880 to conduct their business to get around the difficulty of 0:15:50.320 --> 0:15:55.480 obtaining visas. What's also taking place is that sometimes you 0:15:55.680 --> 0:15:58.440 don't want to appear very high profile in your procurement 0:15:58.440 --> 0:16:01.800 out of China, so large companies will really bank on 0:16:02.720 --> 0:16:06.640 very small suppliers to go the small shipment route. And 0:16:06.680 --> 0:16:09.200 then of course the last thing is that they are 0:16:09.240 --> 0:16:12.040 able to lobby the government that working with China is 0:16:12.040 --> 0:16:15.200 really and imperative it's not something that you can close 0:16:15.200 --> 0:16:18.720 your eyes to. So as a result of those negotiations, 0:16:18.880 --> 0:16:22.440 companies have been able to actually secure some amendments to 0:16:22.880 --> 0:16:26.400 the very harsh investment screening criterias that India had put 0:16:26.440 --> 0:16:29.760 in place five or six years ago. So a bunch 0:16:29.800 --> 0:16:33.800 of workarounds are enabling that business sort of lusk continue 0:16:33.920 --> 0:16:37.000 to happen even in these sort of really fraud times. 0:16:39.960 --> 0:16:42.280 And are these workarounds, I mean, are they the key 0:16:42.320 --> 0:16:45.119 to really solve India's China problem. 0:16:45.320 --> 0:16:48.920 The workarounds do help, but they don't fully solve the 0:16:48.960 --> 0:16:51.920 extent of the problem that we are seeing because large 0:16:51.920 --> 0:16:54.800 scale manufacturing, in the kind of large scale tech transfer 0:16:54.800 --> 0:16:57.560 that we're talking about cannot be on the point, remain 0:16:57.640 --> 0:17:01.760 low profile. And the binder is really that Chinese companies 0:17:02.000 --> 0:17:04.679 can end up having very little say in the face 0:17:04.880 --> 0:17:09.639 of government directives. If China does want to restrict access 0:17:09.680 --> 0:17:13.240 to technology, even though It's companies would find that it's 0:17:13.280 --> 0:17:16.560 in their commercial interest to work with certain countries or 0:17:16.600 --> 0:17:20.879 certain companies, it can kind of hold them back. So 0:17:20.960 --> 0:17:25.680 it does need a diplomatic breakthrough at some level for 0:17:25.760 --> 0:17:27.520 this problem to be fully resolved. 0:17:28.080 --> 0:17:30.960 So what can India then do to break this cycle. 0:17:31.560 --> 0:17:33.280 To break through, the. 0:17:33.200 --> 0:17:37.159 Only option before India is to really identify the next 0:17:37.280 --> 0:17:41.280 window and really catch the next generational lead in technology. 0:17:41.760 --> 0:17:46.399 For many existing industries, the ship may have sailed for India, 0:17:46.480 --> 0:17:50.639 for example, it could perhaps be physically. The advantage India 0:17:50.680 --> 0:17:54.520 has is in the vast population that it has and 0:17:54.520 --> 0:17:57.400 the immense amount of data that it can generate, and 0:17:57.440 --> 0:18:01.160 of course the vast demand that it has for these 0:18:01.240 --> 0:18:04.440 advanced technologies. So it does have the potential to offer 0:18:04.560 --> 0:18:07.119 scale in all of these industries, but it needs to 0:18:07.119 --> 0:18:10.520 figure out the next window in terms of when it 0:18:10.600 --> 0:18:13.680 can do that instead of now just trying to put 0:18:13.800 --> 0:18:23.600 nearly catch up to where China has a clear dominance already. 0:18:29.200 --> 0:18:32.359 This is The Big Take Asia from Bloomberg News. I'm wanha. 0:18:33.080 --> 0:18:35.800 To get more from The Big Take and unlimited access 0:18:35.840 --> 0:18:38.760 to all of Bloomberg dot Com, subscribe today at Bloomberg 0:18:38.760 --> 0:18:42.120 dot com slash podcast offer. If you like the episode, 0:18:42.200 --> 0:18:44.480 make sure to subscribe and review The Big Take Asia 0:18:44.560 --> 0:18:47.480 wherever you listen to podcasts. It really helps people find 0:18:47.520 --> 0:18:49.879 the show. Thanks for listening, See you next time.