By 2028, will India overtake China and gain a place in the world economy? Achi-News

China, the strongest country in the world, is reporting a slowdown in its economy for several reasons. This situation in China, which was a supplier of many materials and technologies to the world, is a great opportunity for countries like India, which are achieving a milestone in their economy. India has every chance to overtake Beijing China as the world’s next growth driver by 2028 and take its place in the world economy.

India’s stock market continues to boom due to foreign exchange and new trade agreements from the Centre. Aircraft makers like Boeing are taking record orders from Indian airlines like Air India and IndiGo.

However, India’s economy is much smaller than China’s. India has a $3.5 trillion economy, while China has a $17.8 trillion economy. However, recently India has been making great progress in the economy.

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What should India do to overtake China?

According to a Bloomberg report, India needs to focus on global economic growth to overtake China faster. India will only be able to overtake China if it takes these kinds of initiatives, including building better infrastructure, upskilling and participation of the workforce, building better cities to house all those workers and attracting more factories to provide jobs to them.

The Modi government is trying to make the Indian economy more competitive. Modi has taken India’s fast-moving economy as his election agenda, promising to take the country’s economy to the “highest position in the world” at a rally last year.

Modi’s focus on the economy

Accordingly, the Government of India’s allocation for infrastructure in the financial year 2024-2025 has tripled from ₹ 11 lakh crore five years ago.

Modi plans to invest ₹143 lakh crore in the six years to 2030 to improve railways, roads, ports, waterways and other critical infrastructure.

At the same time, the Modi government has tried to curb inflation by banning wheat and rice exports.

At the beginning of this decade, the Government of India came up with around ₹ 2.7 lakh crore incentive programs to promote domestic manufacturing.

Companies get tax breaks, lower land rates and capital from states to set up factories in India.

Bloomberg Economics reports that India’s economy will accelerate to 9 percent by the end of the decade, while China’s economy will slow to 3.5 percent.

This signals that India is on track to overtake China as the world’s biggest growth driver by 2028, economists say.

It is also estimated that India can reach that milestone by 2028 on the basis of purchasing power parity.

India stands out as the only country with a population large enough to compensate for the retiring factory workers in advanced economies and China.

Bloomberg Economics estimates that around 48.6 million middle-skilled workers work in factories in India.

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There is a growing shortage of young workers in China. During the same period, India is likely to acquire 38.7 million such workers in the near future. These developments are powerful tools for India to overtake China.

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