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China’s economy punctured, India’s economy in ‘Top Gear’… Will India be able to surprise the occasion?

India’s progress is running at the speed of a rocket. India has become the fastest growing economy in the world. The speed at which we are growing, it seems that very soon we will become the third largest economy in the world.

China Vs India Economy: India’s progress is running at the speed of rocket. India has become the fastest growing economy in the world. The speed at which we are growing, it seems that very soon we will become the third largest economy in the world. Global rating agencies, increasing foreign investment, increasing exports and strong market are helping India achieve this goal. While India’s economy is growing rapidly, everything is not going well in its neighboring country and China, which is the second largest economy in the world. From China’s banking crisis to real estate crisis, we are hearing news every day and now chaos has started in China’s stock market too.

China’s increasing deficit 

Why is China ruining? 

 China itself is responsible for its own destruction. If we talk about the reasons, the biggest reason for the ruin of China is foreign direct investment. China is gradually falling into recession. According to Bloomberg report, foreign direct investment (FDI) coming into China is decreasing. China’s FDI has been the worst in 30 years. The foreign investment received by the country in the last year 2023 was only 33 billion dollars, which is 82 percent less as compared to the year 2022. In the year 2023, China’s direct investment liabilities came down to 33 billion dollars, which is the lowest since 1993. Is.

The most important pillar of China’s economy is its real estate sector, which is in serious crisis for the last few years. China’s largest real estate company Evergrande has gone bankrupt. Clouds of crisis are looming over China’s property market. The real sector crisis has also engulfed the banking sector. Banks giving loans to real estate developers are also getting into trouble. These tensions have put pressure on China’s stock market. At the same time, the deepening tension with America is also a major reason for the decline in China’s stock market. At the same time, China’s weak growth rate is driving investors away from it, this year China’s growth rate is expected to fall to 4.6 percent as compared to 5.2 percent in 2023. If it continues like this, it will be the worst performance for China’s economy in 10 years.  

What benefit does India get from this condition of China? 

China has always been unhappy with India’s progress. Now the situation is such that foreign companies and investors are looking at India as a replacement for China. Global investors are continuously looking for an alternative to the declining Chinese market and India is presenting its strong claim for the same. Indian stock markets are making records one after the other and are getting record breaking returns from short term to long term. According to experts, India’s stock market will prove to be good for long-term investors. Goldman Sachs believes that the Nifty index is currently around 22,000, which will reach 23,500 by the end of 2024. A large number of retail investors in India. I am joining the stock market. An average of $2 billion per month is being purchased by domestic institutional investors. IMF revised India’s growth rate and increased it. It is estimated that India’s GDP will grow at a pace of 6.7 percent in 2024, while China’s GDP growth estimate is 4.6%. At the same time, foreign companies are turning to India. Big companies like Apple, Micron, Foxconn want to set up their production hubs in India. Whatever these companies were doing in China, they want to do in India. That means China’s declining economy is an opportunity for India.

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