India All Set To Become New Growth Engine, Not China: S&P

Asia has been going through some significant changes in the last few years; one of the major changes happening is the shifting of the global manufacturing hub from China to India. Many companies, including giants like Apple and Tesla, are also looking to establish manufacturing units in India. Apple has even started pumping out its iPhones from India.

Now, the American analytics company S&P has published a report called, ‘China Slows, India Grows’, which states that India would be the next growth engine for Asia-Pacific. The agency has projected that India’s GDP will grow at a rate of 6.4% this year and the next year. In 2025, this rate is expected to go up to 6.9%, and for the year 2026, the growth rate is projected to be 7%. Recently, India’s IT minister said that India is looking to generate around $8 to $12 billion in investments for semiconductor manufacturing plants from chipmakers around the world. This statement came after the inauguration of a chip-manufacturing plant by one of the biggest American tech companies, AMD. 

The report also stated that the disputes with China in the region have urged the Western world to decrease its reliance on the Chinese supply chain and look for a manufacturing that is much more stable and plays well with other countries. India is one of the fastest-growing economies in the world. Global brokerage company Morgan Stanley also pushed India from 6th rank to first rank in its report. Also, The International Monetary Fund published its world economic outcome last month, projecting India’s GDP growth to around 6.3%. This is a 20 basis point or 0.2% increase from the July projections.  

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