Goldman Sachs: India and China will be the Global Titans in next 50 years
The historical evidence of ancient civilisations beyond doubt conveys the factor that both the Asian countries India and China have been the predominant center with abundant resources and balanced economy, & trade with other nations around the world. After the rise of eastern powers both politically and economically they dominated the Asian influence and it widened larger after the outbreak of industrial revolution during the mid 17th century.
The tables are moving and these two Asian countries (India and China) are moving equally with remarkable statistical visions in their economic policies which are getting updated by detaching the factors that pull back their future insights. Recently, these two countries have developed as the epicenters of global trade. The neoteric report of Goldman Sachs ensured that and it has gathered the attention of many global countries in which the two Asian countries would grow as the largest economies in 2075.
The five notable factors which contributed to transforming the economy of India and China are as follows.
Geo-Political Impact
Both India and China are in the major position in the geo-politics and they have replaced many of their previous policies, stands & even perspectives which aligned ideal to their economic visions. The head of global economics research at Bank of America, Claudio Irigoyen has stated in 2023 that India’s neutral position in the geo-politics has attracted the global investments and benefited the economy predominantly. China, majorly plays a vital role in the geo-politics of South Asian Countries and their economy through trades. In addition to that they maintain a trade partnership with highly influential nations like the USA, Russia and other EU nations.
Economic Strategies and Vision
The economic strategies of the two countries includes the Vision 2047 of India which aims to turn the economy of the country to $30 trillion with the increase in the per capita income of $2,600 to $18,000. The other policies focus on the industrialization, human capital development, and digital transformation of essential sectors. The significant “Make In India & Startup India” projects the encouragement of exports of Indian products larger by deducting the foreign imports especially the electronics and pharmaceutical. China’s Vision 2049 has invested in futuristic technologies including AI, 5G and green energy to showcase the technological dominance against the western innovations. They also insisted on infrastructure development in trade and economic ties with the global countries. This helps China to balance their domestic consumption and idea of self-reliance.
Global Markets
China’s Belt and Road Initiative (BRI) is one of the heavily invested infrastructure projects which aims to connect the countries of Asia, Africa and Europe which uplifts the trade of various nations with China in large. There are two more infrastructure projects which are named “Silk Road Economic Belt” which connect China with Russia, Europe, Central Asia, South Asia and East Asia through roads. The other one is the “21st Century Maritime Silk Road” which crosses countries through the sea with China. These will majorly lift their trading around the world. Whereas, India aims to reach $1 trillion before 2030 through exports in the global markets. The rejuvenating “Production-Linked Incentive scheme” falls under FTI (Foreign Trade Policy) of India to catalyse the economic trades in the manufacturing sectors. The FTI primarily focuses on enhancing the E-Commerce Export Hub.
Influence of Regional Economies
Based on the reports given by the European Commission it justifies the surging economy of India which was measured by Purchasing Power Parity. It is estimated as 4% in 2000 which has now increased to 7.5% in 2023 and in 2030 it could rise around 10%. It further unfurls India’s regional economy which has raised predominantly due to the 70% of GDP from the policies like “Make In India and Startup In India” which whip up the internal productions and trade. China has strengthened their internal infrastructure policies to promote their regional economy. BRI, CPEC (China-Pakistan Economic Corridor), China Western Development Strategy, Yangtze River Economic belt are constructed to create a ripple effect in the country’s regional economy.
Global Investments in China & India
List of International Companies invested in China
- Hon Hai Precision (Foxconn)
- Volkswagen
- Apple
- General Motors
- CP Group
- HSBC
- Robert Bosch
- Toyota
- Samsung
- BMW
The FDI in China has been estimated as $96.29 billion in the year 2024 till October, whereas the first half of the year has attracted around $69.93 billion. The FDI on the technical sector has increased upto 19.5%.
List of International Companies invested in India
- Temasek
- GIC of Singapore
- Warburg Pincus and International Finance Corporation
- Varde Partners
- Amansa Capital
- Jungle Ventures
- WestBridge Capital
- Tiger Global and Info Edge Ventures
The FDI in India has reached an ultimatum of $1 trillion in 2024, says the reports of DPIIT (Department for Promotion of Industry and Internal Trade).
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