You're partly true. There're two stages of CPEC.
First, drag Pakistan out of electricity crisis, improve transportation and interlink across different regions, this will pave the way to further industrialization. You have stable supply of electricity, smooth transportation, enough young labors, except stable politics and security, all conditions are met to develop industries. That's why majority of fund are spent in power plants and transportation. Gwadar port in fact is not the major project if you calculate the portion of fund spent in Gwadar port which can be grouped into transportation.
Second, there will be many industrial parks constructed in Pakistan, this will attract many private capitals to open factories in the parks, majority of these investment will be manufacture, this is not necessarily *low end* as some people think, this is also not necessarily *relocate*. The business is changing toward e-Business, faster delivery to end customer. E.g. If an Arab customer place an order to buy an electronic toy for his kid on Alibaba, the toy is manufactured in Guangdong, the customer has to wait a week to get the package. Or this customer buy the toy from a retailer in his city, he has to pay more than 50% for the same product than from the internet. If the toy manufacture establish a factory in Pakistan, he will pay probably less than buy from Alibaba since the toy is manufactured in Pakistan in lower cost than China, furthermore, the toy will be delivered faster than shipping from China. This is only one possible scenario in today business. The toy producer is *expand*, not *relocate* its business in Pakistan. The machines required to produce toys are same as in China, not necessarily *lower end* compared with the factory in China.
Well, you're right that Pakistan need manufacture, this is the final goal of CPEC. If you check the map, from Middle East to East Africa, to South Asia, there're 2 best place to develop manufacture, the first is India, the second is Pakistan. So it's obvious that once Pakistan successfully establish its manufacture base, it will very conveniently distribute its goods to India, Middle East, East Africa, or even Europe. Of course, India will have to face competition from Pakistan, just like India will face competition from BD in garment industry. Indian traders will procure the products from Pakistan because it's cheaper than made in China and sell slightly cheaper than before to earn more money, is this a real threat to India?