India is seen as a reliable partner while China’s image has been tarnished, with many considering Beijing to be unpredictable, reported German publication Der Spiegel.
During the coronavirus pandemic, the government imposed extremely strict lockdowns, which unsettled many. Moreover, President Xi Jinping has proclaimed himself the country’s eternal leader and has also continued to maintain friendly relations with Russian President Vladimir Putin despite Russia’s invasion of Ukraine, reported Der Spiegel. In response, a huge number of companies are suddenly rushing to find alternatives to their factories in China.
“I’ve never received so many senior representatives from German companies as I have in the last six months,” says Rajesh Nath, from the Indian branch of the influential German trade association VDMA, which represents the machinery and equipment manufacturing sector.
New Delhi is watching the world’s shifting balance of power with heads of state and senior company executives from across the globe wooing India.
Meanwhile, India has established a multibillion-dollar subsidy program to attract companies interested in producing things like semiconductors, batteries and mobile phones in India – a plan that has been praised even by critical economists.
Today, the Indian economy has left the British in the dust. The country’s steel factories are among the largest in the world, and more than 50 per cent of all children in the world will receive at least one vaccine produced in India during their lifetime.
India has a vibrant film industry (Bollywood) and has also produced an extremely successful diaspora. Sons of Indian middle-class families are in control at both Google and Microsoft, while a third, Ajay Banga, is set to be confirmed as president of the World Bank in the coming weeks, reported Der Spiegel.
Also, India’s rise is good news for the West. Within several years, the country is likely to become the world’s third-largest economy behind the US and China, essentially becoming a third economic anchor in a multipolar world.
In recent years, India has grown ever closer to the West, though it doesn’t necessarily share all of the West’s values, however, India also isn’t a country harbouring dreams of annexing islands and shares American and European concerns about Chinese dominance in Asia, reported Der Spiegel.
India is already home to strong IT and pharmaceutical industries. According to forecasts from JP Morgan in the US, some 25 per cent of all Apple smartphones will be produced in India just two years from now.
The Taiwanese firm Foxconn has also recently announced the construction of a new mega-factory in the country. “Made in China” is morphing into “Made in India,” reported Der Spiegel.
Prime Minister Narendra Modi also sees digitalization as a means of achieving one of his most important goals: the elimination of poverty and the government has made significant progress toward that target: More than 400 million Indians have escaped poverty in the last 20 years.
PM Modi is even using his current G-20 presidency to further his narrative of India’s rebirth. New high-speed trains are going from city to city. Around 80 new airports are to be built in the coming years, reported Der Spiegel.
This year, the Indian economy is expected to continue on its growth path, with forecasts calling for an uptick of 6 percent. Among the world’s largest economies, only Saudi Arabia is forecast to experience stronger growth. And when India hosts this year’s G-20 summit in September, the eyes of the world will once again be trained on the country.
India’s economic rise holds promise for the country and beyond. It is now the world’s most populace country and will likely soon become the third largest economy on the globe. For decades, economists have been predicting that India’s time would come.
Even as the global economy is stumbling, India has remained stable. The International Monetary Fund (IMF) is projecting that India will contribute 15 per cent of global growth in 2023, reported Der Spiegel.
India replaced China on April 14 as the world’s most populace nation. Close to every fifth person on the planet lives in India. India’s population is young, younger than China’s. Salaries are relatively low, and the nation’s potential is enormous. Many currently believe that India’s moment has finally arrived, and the country is gripped by optimism.
Singapore-based political scientist Kishore Mahbubani recently said during an interview with Fareed Zakaria on CNN. Referring to Indian Prime Minister Narendra Modi, he added: “I don’t know how Modi did it, but he’s woken up a sleeping giant.”
The investment bankers from Morgan Stanley even announced recently that “India’s decade” is just starting.
(This news report is published from a syndicated feed. Except for the headline, the content has not been written or edited by OpIndia staff)
