Western companies inclined to invest in India as against China !

Washington – Various economists have said that China would be the biggest economy in the world by 2028 considering the policies it has been presently working on and if these policies were successful as it has been shown in the recently published Bloomberg report. The report, however, also says that despite China’s attempts, its dream would not be fulfilled. This report is pessimistic from China’s point of view, in a way; but it is optimistic for India. One of the reasons for it is, that out of the 23% of European investors who have left China, the maximum number of investors have invested in India. Investment is increasing even in Indonesia and Vietnam.

 Possibility of China-America conflict in future   

Out of the American companies which have already invested in China, 50% might leave China because the conflict between these two biggest economies in the world might increase, and it would become difficult for the USA to trade with China.

Reasons for investors getting discouraged to invest in China ! 

1. The foreign investors found it difficult to invest in China during the Corona pandemic period owing to its ‘zero-tolerance’ policies. With China’s very stringent policies related to Corona, the rate of its economic growth has remained at  5% only while its unemployment has increased by 6%.

2. China’s economy is mainly dependent on the real estate business, which received a big blow last year, and the problem is not going to be solved soon.

3. In the background of the Russia-Ukraine war, if China attacked Taiwan; or if the anti-China agitations staged in Hong Kong were forcibly crushed; or if China started military action against its neighbouring countries, there would be no future for investments in China and therefore, the foreign investors are leaving China.

4. In such a situation, if India would be successful in drawing investors towards India, the economists feel that India can be the world’s new hub for businesses.