New Delhi: Noting that the relationship with China is important and significant, Prime Minister Narendra Modi has said that there is need to urgently address the “prolonged situation on our borders” so that the abnormality in bilateral interactions can be put behind and hoped that peace and tranquillity will be restored on the borders through positive and constructive bilateral engagement.

In an interview with Newsweek, PM Modi also said that India, as a democratic polity and global economic growth engine, is a natural choice for those looking to diversify their supply chains.

India has said that relations with China cannot be normal if peace and tranquillity in border areas is disturbed. A military standoff was triggered along Line of Actual Control (LAC) by actions of the Chinese military in eastern Ladakh in May 2020 and some “friction points” remain to be resolved. The two countries have held a series of meetings between senior commanders and of Working Mechanism for Consultation and Coordination on India–China Border Affairs (WMCC).

Prime Minister Modi told Newsweek that stable and peaceful relations between India and China are important for not just the two countries but the entire region and world.

“For India, the relationship with China is important and significant. It is my belief that we need to urgently address the prolonged situation on our borders so that the abnormality in our bilateral interactions can be put behind us,” he said.

“I hope and believe that through positive and constructive bilateral engagement at the diplomatic and military levels, we will be able to restore and sustain peace and tranquillity in our borders,” he added.

Narendra Modi is the first PM to be on Newsweek cover after Indira Gandhi.

Answering a query on China and the Quad, he said the US, Australia, Japan, India, China, all these countries are members of many groups.

“We are present in different combinations in different groups. Quad is not aimed against any country. Like many other international groupings, like SCO, BRICS and others, Quad is also a group of like-minded countries working on a shared positive agenda,” he said.

Quad is a diplomatic partnership between Australia, India, Japan, and the United States committed to supporting an open, stable and prosperous Indo-Pacific that is inclusive and resilient.

The Prime Minister said that the Indo-Pacific region is the engine of global trade, innovation and growth and the security of the Indo-Pacific is important not only to the region, but to the world.

“Through shared efforts and implementation of development projects in the Indo-Pacific in the areas of climate action, disaster management, strategic technologies, reliable supply chain, health security, maritime security and counterterrorism, the Quad countries are demonstrating their vision of a free, open and inclusive Indo-Pacific,” he said.

Answering a query on competing with China, PM Modi said India is now globally considered most suited for manufacturing world-class goods at a competitive cost.

He said India is a perfect destination for those who want to set up trusted and resilient supply chains.

“India, as a democratic polity and global economic growth engine, is a natural choice for those looking to diversify their supply chains. We have undertaken transformative economic reforms: Goods and Service Tax, corporate tax reduction, bankruptcy code, reforms in labor laws, relaxation in FDI norms. As a result, we have made significant improvement in ease of doing business. We are striving to make our regulatory framework, our taxation practices as well as our infrastructure at par with global standards,” he said.

“We believe that when a country with one-sixth of the world’s population adopts global standards in these sectors, it will have a big positive impact on the world,” he added.

The Prime Minister said India’s policies that encourage businesses and entrepreneurship, coupled with world-class infrastructure and availability of skilled talent have yielded results.

“We have major global manufacturing entities setting up shops in India. We have initiated Production Linked Incentive schemes to strengthen manufacturing capabilities in India. These PLI schemes extend to 14 sectors such as electronics, solar modules, medical devices, automobiles, among others,” he said.

“Given our strengths, India is now globally considered most suited for manufacturing world-class goods at competitive cost. Apart from producing for the world, the vast Indian domestic market is an added attraction,” he added.