India will be the next China.. ?
India will be the next China..!? While many countries around the world are reeling from recession, india does not seem to have any such problem. Although growth has been slow, the US is not as bad as the UK. Due to this, the attention of international countries has turned towards India. On the other hand, china , which is said to be the manufacturing plant of the world, has been in a tense situation in recent years. Many companies are facing problems amid the strict restrictions of the Chinese government. Many companies are planning to do their business outside of China. India's largest market is expected to attract international companies to India. Amid the problems already existing in china , apple has started to increase its production in India. In order to encourage foreign investments in india , the indian government is doing many things like investments, roads, fixed income investments, and facilities needed to set up factories here for international companies to increase their production. Above all, various incentives such as tax incentives and subsidies are available to the companies that do their manufacturing here through some schemes including PLI. The growth rate of continuous domestic companies has also started to grow significantly after Corona. So this can also lead to an increase in India's production. After all, in india , which is the second largest country in the world with the largest population , the population is another important reason for the interest of international companies. Even today in india , the government provides many subsidies for everything from solar to electric vehicles and batteries. As the future demand may increase the demand for the above products, the production of these may lead to an increase. It will be sufficient to meet India's demand rather than exporting these products. This may lead to a reduction in imports from neighboring countries. Inflation in india is higher than the target. The banking sectors have improved. Necessary funds are being provided. This is expected to further push up capital expenditure. Despite facing the worst impact on economic growth since Corona, the narendra Modi-led government is handling it very carefully. In particular, it is providing various benefits to drive the country's economy in the long run. Meanwhile, the government had to deal with public health, student education, and the environment during the Corona period. Due to this, the fiscal deficit in india was very high. But despite all these challenges, india continues to implement successive projects. Investments in india are continuously increased through the government's PLI scheme. It has also increased employment opportunities. It is expected that employment opportunities will continue to increase through this. It is expected that this will definitely help the development of india in the long run. On the other hand, problems continue to mount in China. The initial recession, the collapse of the real estate sector, China's strict control over corporates, and the subsequent zero-covid policy have continued to impact China's growth. As a result, investments in china have started to decline. Meanwhile, exports to most Asian suppliers have started to decline due to the recession. India's exports saw a significant decline last November. Growth in the industry has been at a slow pace. Meanwhile, the unemployment rate is over 8%. Interest rates are likely to continue to rise. So the situation may get worse. If the war in ukraine escalates and the problems in china subside, it may again have an impact on India. This may reduce cash flow for indian companies. Especially when the central bank is increasing the interest rate, banks are forced to increase the interest on deposit funds. Meanwhile, India's growth rate forecast for next year remains slow. It is in the midst of an international recession. However, long-term growth is expected to remain positive in India. india may attract more investments than china in particular.
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