So now India to be 'benefited' from ‘this loss' of China
Saturday - January 4, 2020 12:04 pm ,
Category : WTN SPECIAL
Historical decline in industrial production in China
China's economy affected by the trade war, many Chinese companies can start plants in India
JAN 04 (WTN) - The global economic slowdown has affected the economies of the world in some way. According to the International Monetary Fund (IMF), 90 per cent of the world's economies have been affected in some way by the economic slowdown. For your information, let us know that there are many reasons responsible for the economic slowdown, but the US-China trade war is also one of the main reasons for the economic slowdown. As you know, China is currently the second-largest economy in the world, but the economy of China with an expansionist mindset has suffered a major setback.
Let us know that China is suffering a lot due to the ongoing trade war with America, and industrial production in China has come down to the lowest level of 17 years. According to media reports, the growth rate of industrial production in China fell to a 17 and-a-half year low in August last year. According to the data, in the month of July last year, China's industrial production growth rate was 4.4 percent, which is the lowest level since February 2002.
According to international trade experts, the decrease in industrial production in China will have an impact on the whole world. This is why because of the production of Chinese industries is in demand and supply all over the world. Not only this, raw materials are supplied from many countries of the world for China-based industries. In such a situation, the decrease in production and sale of products in China shows how deep the impact of the economic slowdown is. As we told you earlier that China is the second-largest economy in the world that is why by the year 2000, China's share in the world's economic activity was about 7 per cent. But it is now estimated that China's share of the world's economic activity has reached nearly 19 per cent.
Actually, Chinese products have so much reached in countries all over the world that many products in the world are determined by the Chinese economy. For your information, let us know that about half of the steel, copper, coal, and cement produced in the world supple to China. In such a situation, if China reduces or stops the purchase of this raw material, then their prices will be affected and their prices will start falling.
As you know, China and India are the neighboring countries, and India imports a lot of goods from China. Let us know that China's share in India's total imports is about 16 per cent. China is the fourth largest export market for India. As far as India's exports to China are concerned, for your information, let us know that China's share in India's exports is 4.39 per cent. In such a situation, due to reduced industrial production in China, India will not be affected much.
But India can get the biggest benefit of the low industrial production rate of China. This is why because of many foreign and Chinese companies producing goods by setting up factories in China may turn to India due to losses of production due to trade war. For your information, let us know that during the US-China trade war, many foreign companies have decided to set up its factory in India instead of China, seeing the impact on their business. It is natural that if these companies come to India, then, on one hand, their products will be sold cheaply in India, on the other hand, it will also provide employment to a lot of people.
Not only foreign companies but also Chinese companies which sell their products in India, due to trade war they can start their production in India. Not only this, if companies from China and other countries come to India for setting up, it will help India in terms of infrastructural facilities. While all this depends on future conditions, but according to the International Monetary Fund, soon the Indian economy will become a faster-growing economy than the Chinese economy.
However, the International Monetary Fund states that the GDP growth rate in India in the current financial year is low due to the uncertainty of corporate and environmental regulators and weaknesses of some non-banking financial companies, but it is expected that the Indian economy will grow in the coming financial year. The economic growth rate will pick up the pace again, and the Indian economy will be one of the fastest-growing economies in the world.
JAN 04 (WTN) - The global economic slowdown has affected the economies of the world in some way. According to the International Monetary Fund (IMF), 90 per cent of the world's economies have been affected in some way by the economic slowdown. For your information, let us know that there are many reasons responsible for the economic slowdown, but the US-China trade war is also one of the main reasons for the economic slowdown. As you know, China is currently the second-largest economy in the world, but the economy of China with an expansionist mindset has suffered a major setback.
Let us know that China is suffering a lot due to the ongoing trade war with America, and industrial production in China has come down to the lowest level of 17 years. According to media reports, the growth rate of industrial production in China fell to a 17 and-a-half year low in August last year. According to the data, in the month of July last year, China's industrial production growth rate was 4.4 percent, which is the lowest level since February 2002.
According to international trade experts, the decrease in industrial production in China will have an impact on the whole world. This is why because of the production of Chinese industries is in demand and supply all over the world. Not only this, raw materials are supplied from many countries of the world for China-based industries. In such a situation, the decrease in production and sale of products in China shows how deep the impact of the economic slowdown is. As we told you earlier that China is the second-largest economy in the world that is why by the year 2000, China's share in the world's economic activity was about 7 per cent. But it is now estimated that China's share of the world's economic activity has reached nearly 19 per cent.
Actually, Chinese products have so much reached in countries all over the world that many products in the world are determined by the Chinese economy. For your information, let us know that about half of the steel, copper, coal, and cement produced in the world supple to China. In such a situation, if China reduces or stops the purchase of this raw material, then their prices will be affected and their prices will start falling.
As you know, China and India are the neighboring countries, and India imports a lot of goods from China. Let us know that China's share in India's total imports is about 16 per cent. China is the fourth largest export market for India. As far as India's exports to China are concerned, for your information, let us know that China's share in India's exports is 4.39 per cent. In such a situation, due to reduced industrial production in China, India will not be affected much.
But India can get the biggest benefit of the low industrial production rate of China. This is why because of many foreign and Chinese companies producing goods by setting up factories in China may turn to India due to losses of production due to trade war. For your information, let us know that during the US-China trade war, many foreign companies have decided to set up its factory in India instead of China, seeing the impact on their business. It is natural that if these companies come to India, then, on one hand, their products will be sold cheaply in India, on the other hand, it will also provide employment to a lot of people.
Not only foreign companies but also Chinese companies which sell their products in India, due to trade war they can start their production in India. Not only this, if companies from China and other countries come to India for setting up, it will help India in terms of infrastructural facilities. While all this depends on future conditions, but according to the International Monetary Fund, soon the Indian economy will become a faster-growing economy than the Chinese economy.
However, the International Monetary Fund states that the GDP growth rate in India in the current financial year is low due to the uncertainty of corporate and environmental regulators and weaknesses of some non-banking financial companies, but it is expected that the Indian economy will grow in the coming financial year. The economic growth rate will pick up the pace again, and the Indian economy will be one of the fastest-growing economies in the world.
