THE GROWTH FACTORIES
India Today|August 26, 2024
Modi’s vision of a 10 trillion economy has spurred policy shifts that aim to transform India into a global manufacturing powerhouse. But China’s dominance poses a challenge
Anilesh S. Mahajan
THE GROWTH FACTORIES

The first Economic Survey of Modi 3.0 dropped a bombshell when it made a case for getting Foreign Direct Investment (FDI) from China to help India improve its participation in global supply chains through exports.

Even as Union commerce & industry minister Piyush Goyal quickly scotched speculations about easing Chinese capital inflows, the economic survey-tabled a day before the Union budget to provide an overview of the Indian economy's performance has set off a debate.

China is India's largest trade partner, with export/ import volumes exceeding $118 billion (Rs 9.9 lakh crore, at the current exchange rate) in 2023-24. But India's trade deficit with China is also the highest at $85 billion (Rs 7.14 lakh crore), not including Chinese products reaching its shores through free trade agreements (FTAs) with ASEAN countries.

This gap was less than a billion dollars at the turn of the century when China joined the World Trade Organization (WTO). Since then, China has transformed itself into a bustling "factory of the world", capitalising on lower environmental compliances, surplus and cheaper labour, as well as economies of scale. It was producing enough to flood global markets with much cheaper products, especially when other emerging economies like India and Brazil continued to struggle with their own reforms to open up to foreign capital.

In fact, the share of manufacturing in India's GDP declined from 15.93 per cent in 2001 to 13.35 per cent in 2022, despite the economy expanding by about a 6 per cent compound annual growth rate (CAGR).

Denne historien er fra August 26, 2024-utgaven av India Today.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra August 26, 2024-utgaven av India Today.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA INDIA TODAYSe alt
Decoupling Dilemma
India Today

Decoupling Dilemma

As Tensions Between India And China Thaw And The Trade Between Them Grows, India Faces The Tough Task Of Keeping Cheap Chinese Imports At Bay While Encouraging Those That Its Domestic Industry Needs

time-read
6 mins  |
November 25, 2024
Killer Stress
India Today

Killer Stress

Unhealthy work practices in Indian companies are taking a toll on employees, triggering health issues and sometimes even death

time-read
10+ mins  |
November 25, 2024
Shuttle Star
India Today

Shuttle Star

Ashwini Ponnappa was the only Indian to compete in the inaugural edition of BDMNTN-XL, a new international badminton tourney with a new format, held in Indonesia

time-read
1 min  |
November 25, 2024
There's No Planet B
India Today

There's No Planet B

All Living Things-Environmental Film Festival (ALT EFF) returns with 72 films to be screened across multiple locations from Nov. 22 to Dec. 8

time-read
2 mins  |
November 25, 2024
AMPED UP AND UNPLUGGED
India Today

AMPED UP AND UNPLUGGED

THE MAHINDRA INDEPENDENCE ROCK FESTIVAL PROMISES AN INTERESTING LINE-UP OF OLD AND NEW ACTS, CEMENTING ITS REPUTATION AS THE 'WOODSTOCK OF INDIA'

time-read
2 mins  |
November 25, 2024
A Musical Marriage
India Today

A Musical Marriage

Faezeh Jalali has returned to the Prithvi Theatre Festival with Runaway Brides, a hilarious musical about Indian weddings

time-read
2 mins  |
November 25, 2024
THE PRICE OF FREEDOM
India Today

THE PRICE OF FREEDOM

Nikhil Advani’s adaptation of Freedom at Midnight details our tumultuous transition to an independent nation

time-read
2 mins  |
November 25, 2024
Family Saga
India Today

Family Saga

RAMONA SEN's The Lady on the Horse doesn't lose its pace while narrating the story of five generations of a family in Calcutta

time-read
2 mins  |
November 25, 2024
THE ETERNAL MOTHER
India Today

THE ETERNAL MOTHER

Prayaag Akbar's new novel delves into the complexities of contemporary India

time-read
2 mins  |
November 25, 2024
TURNING A NEW LEAF
India Today

TURNING A NEW LEAF

Since the turn of the century, we have lost hundreds of thousands of trees. Many had stood for centuries, weathering storms, wars, droughts and famines.

time-read
1 min  |
November 25, 2024