India influence on China’s Economy?

India these days is gaining a worldwide recognition at all levels. In the past decade, China has come up with the top exporter of goods not only to India but in the southeast as well. China is the largest country population wise, and so is its economy. The relation of China and India as trading partners shares a long history. Hence the effect of Indian on the China’s Economy cannot be overruled.

There has been a recent slowdown in the China’s economy, which is beneficial for India in many ways. The China’s GDP or Gross Domestic Product growth rate has declined from 7.3 to 6.9%. This slowdown is definitely encouraging the Indian manufacturing industries to began their own manufacturing at comparatively higher rates. “Make in India” is the slogan that we should follow. The slowdown in China’s economy has withdrawn attention from all around the globe.



India will have a bad impact on the export of India in cotton, copper, iron and steel will be further affected. India’s policy of foreign direct investment or FDI can get the consumers from worldwide as the manufacturing cost of the goods in china’s market has also increased now.

In the last decade, China has severely affected many industries, including toy companies. Around 40% of the companies have shut down. Around 20% of them are on the verge as China has the largest toy industry in the world. The basic strategy of China is the bulk production as well as bulk consumption. This strategy combined with low prices has enabled China to affect many other kinds of industries as well.

To protect the local industries and companies from Chinese goods, there must be a regulation in the taxes and the investment policies. India must equally need to work on the efficient use of its energy and resources.