In the past decade, the Indian economy has maintained a rapid growth trend, which is evident worldwide. So, can India become another global manufacturing powerhouse after China?
The main favorable conditions for India to become a manufacturing powerhouse include the following points.
1. The international environment for India's manufacturing development under the influence of India-US relationship. The United States and the West need India as a reliable strategic partner.
2. Human resources and the connection with the world. India is the country with the largest population of working age, and its social environment and educational background are quite compatible with western developed countries.
3. The developed modern service industry under the guarantee of perfect legal system. Compared to the backward manufacturing industry, India's modern service industry is well-developed, accounting for over 60% of its GDP.
4. The Modi government has invested heavily in the construction of infrastructure, which shows his ambition. The IMF says that capital expenditure and productivity improvement will be the biggest driving forces for India's economic expansion in the coming years.
The unfavorable factors that constrain India's manufacturing development include the following two points.
1. Influenced by India's culture, nationalism, caste system, religious contradictions, and gender discrimination, the entire society's problems of corruption, inefficiency, and regional imbalance are still evident.
2. Due to the backwardness of the manufacturing industry and the existence of the caste system, the quality of Indian workers is uneven, and the structure is severely polarized.
