India can't fully replace China's manufacturing role..!?

Companies all over the world are looking to manufacture their products and lead the way. In this, china has been in the lead for a long time and has made a place for itself. india is also currently working on developing itself as a major producer. However, india has to face some challenges to become a leader in the world of manufacturing. This article discusses these challenges and what india needs to do to emerge as a top manufacturer in the future. Let's talk about that. An economic report released by Finance minister Nirmala Sitharaman on monday noted that economic relations between india and china are very complex and intertwined.
This means that China's dominance in the global production and distribution of goods is very strong. Even with supply disruptions caused by the ukraine war, China's dominance has not waned. china is unlikely to completely withdraw from its manufacturing sector. Instead, it wants to continue to dominate international supply chains. This is a big challenge for India. In recent years, india has emerged as a faster-growing economy than china, which has suffered a slowdown due to some structural issues. However, the size of the indian economy remains a fraction of China's. This is another big challenge for India.Similarly, india needs certain minerals if it is to achieve its green energy goals. However, production of such rare earth minerals is high in China. This is a matter of concern for countries around the world, the study says. india is working hard to become the number one producer globally. But India's plans are lagging behind as china is the fastest-growing economy. china plays a major role in the production of various products. As a result, indian companies are forced to buy raw materials from China. There are also fears among the world that china may stop supplying raw materials for political reasons.

What should india do to compete with China?: To compete with china, india needs to increase its domestic manufacturing capacity. The study suggests that in some cases it may work in partnership with technical assistance from China. india is losing heavily in trade with China. In 2023-2024, India's exports to china were just $16.65 billion. But imports from china were $101.75 billion. As a result, india has a trade deficit of $85.08 billion. The study suggests that there will be some respite from such problems as India's domestic production increases.
For more interesting updates wa click and follow Indiaherald WhatsApp channel

Find out more:

Sowmiya Sriram

22/07/2024 10:05 PM