‘Indian economy under PM Modi offers ‘real alternative’ to China’

 

 

 

 

 

WITH the benchmark indices in the Indian stock market hitting new highs, FDI inflow burgeoning and strong investments happening in infrastructure, while China continues to reel under its property crisis, accelerated capital outflow and economic concerns, several experts believe that New Delhi offers a “real alternative” to Beijing, CNN reported.

 

The report further highlighted that market watchers are quite keen on Prime Minister Narendra Modi’s return to power for a third straight term in the upcoming Lok Sabha polls which will bring greater predictability to economic policies.

Financial professionals around the world are noticing India’s development since 2014 under PM Modi, who has said he wants the nation to become a USD 5 trillion economy by 2025. Notably, the optimism around the world’s most populous nation is in stark contrast to the mood found in China, which is grappling with a myriad of economic challenges, including an accelerated flight of capital from the country, CNN reported.

 

The Chinese stock markets have suffered a protracted slump since recent peaks in 2021, with more than USD 5 trillion in market value having been wiped out from the Shanghai, Shenzhen and Hong Kong bourses. Foreign direct investment (FDI) plunged last year, and fell again in January, down nearly 12 per cent compared to the same month in 2023. On the other hand, India’s stock market, is hitting record highs. The value of companies listed on India’s exchanges surpassed USD 4 trillion late last year. According to CNN, the future appears even brighter as India’s market value is expected to more than double to USD 10 trillion by 2030, according to a Thursday report by Jefferies, which would make it “impossible for large global investors to ignore.”