India to be the next manufacturing King all over the world. | The world will soon see the glory of India.

 

India to be the next manufacturing King all over the world:

Who is the new manufacturing king in the world? If this question will be asked a few years from today, the answer may be India instead of China. This is because the cost of construction in India is one of the lowest in the world. It has been claimed in the annual report of US News, according to India has become the cheapest country in the world in terms of manufacturing cost, leaving behind China and Vietnam.

The timing of the survey results can be encouraging. The government is continuously engaged in these efforts to make in India hub of global manufacturing. This mission started with the self-reliant India campaign launched two years ago during the first wave of Corona. Large companies around the world have started manufacturing in India through the government's schemes like Production Linked Incentive ie PLI.

Apart from this, India's rating sector has also benefited greatly from reducing the burden of compliance. This is the reason why in this survey, on a scale of 100, India has got full 100 marks in terms of cheapest manufacturing. US News & Reports rated 85 countries on 73 parameters. However, despite scoring full marks in manufacturing costs, India lagged behind the rest of the countries in many other parameters.

India scored 16.2 in Favorable Tax Environment, 18.1 in Not Fair, 9.9 in Financially Stable Sub-Segment, 3.5 in Transparent Government Policies, 1.9 in Equal Income, and 4.3 in Safety. At the same time, he was able to score 2.3 marks in the Public Health segment. Based on the results of all segments, India was ranked 31st in the 73 parameters on which 85 countries were measured. In the Open for the Business category, India is ranked 37th, China is ranked 70th and Vietnam is ranked 47th.

Based on the overall score of all the parameters, Switzerland has topped the list. In the last few years, China has progressed based on its manufacturing and the basis of India's growth has been the service sector. But now India's manufacturing sector has also become attractive, due to which together with service they can make such a combo that India can get a strong double engine for growth.

The world will soon see the glory of India:

Fed up with the pace of India's economy, the legendary global research agency Morgan Stanley is constantly changing its estimates. Morgan Stanley had predicted just a week ago that India would overtake Japan to become the world's third-largest economy by 2029-30. Now Morgan Stanley estimates that India will be able to do this feat only in 2027.

Whereas the previous estimate claimed to overtake Germany to become the fourth-largest economy in 2027. Morgan Stanley has reiterated that for the next 10 years, the Indian economy will be the fastest in the world. According to the research agency, the current size of India's GDP will increase from $ 3.4 trillion so far to two times i.e. $ 8.5 trillion.

India will add $400 billion to its GDP every year, which is less than only the US and China. The Indian economy is estimated to account for 20% of the total global growth in the next 10 years. The market capitalization of the stock market is also expected to increase from $3.4 trillion to $11 trillion by 2032 to reach third place in the world.

According to the report, the market cap of the Indian market will reach that level only if the domestic and global environment is favorable for it. According to Morgan Stanley, the Indian economy can maintain an average annual growth rate of six and a half percent for the next 10 years. The same China will grow at an average annual growth rate of 3.6% for the next 10 years.

The reason for the decline in the growth rate of China compared to India is that the working population in India is continuously increasing, while the population of the elderly is increasing in China. Due to this now the working people are decreasing there. The average age in India is less than 11 years compared to China. 

Many global companies can take their manufacturing plants out of China and take them to other countries including India in such a situation. India's export market share is expected to double and the services export market to triple in the next 10 years. The share of e-commerce is expected to increase from 6.5% to 12.3% and the number of online shoppers is expected to increase from 250 to 700 million. 

The number of Internet users is also estimated to increase from 650 million to 96 million. According to Morgan Stanley, the Indian economy has benefited from the reduction in GST, corporate tax, and Production Linked Incentives Scheme. 

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