Wednesday, April 17, 2024

The Global Economy Needs a New Powerhouse. India is stepping up: Report

Immigration News

Fidel Rahmati
Fidel Rahmati
Fidai Rahmati is the editor and content writer for Khaama Press. You may follow him at Twitter @FidelRahmati
Representative Image: Prime Minster of India-Narendra Modi.

Global manufacturers are moving outside China, and India is stepping up to seize the opportunity. This fiscal year, the government will spend the most on capital investments—nearly 20% of its total budget—in at least ten years.

The current Indian government might assert that the country, which may have recently surpassed China’s population, is now reaching its economic potential.

“India is on the cusp of huge change,” said Nandan Nilekani, a founder of Infosys Ltd., one of the nation’s largest technology services companies. He said that India has quickly created the capacity to support tens of thousands of startups, a few billion smartphones and data rates that rank among the lowest in the world.

On the one hand, the rising US-China trade war and geopolitical escalating between Beijing and Washington and China’s Covid-related lockdowns and restrictions provide an excellent opportunity for India and Vietnam. Supply-chain analysts say these two countries will be the big beneficiaries as companies move toward a “China-plus-one” strategy.

According to Morgan Stanley, India will drive a fifth of global growth in this decade, making it one of just three countries capable of generating annual production growth of more than $400 billion.

In addition, recent India’s proactive leadership has been praised by global leaders. The founder and executive chairman of the World Economic Forum (WEF), Klaus Schwab, praised Prime Minister Narendra Modi’s leadership in a divided world and said India is a bright spot amid the global crisis.

This comes amid the report by IMF indicating that India is better off than many global economies. The document stated that India’s growth rate is 6.8 % for the current fiscal year, while 6.1 for the following financial year has been estimated. 

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