The recent slowdown of Chinese economy can prove to be a boon for India when it comes to making India a manufacturing hub. China as an economy has not being down well in the past two years and the recent devaluation of yuan by four percent has proved to be a major jolt for the stock market. For a country whose growth rate was 15 per cent a few years back, the recent slowdown has proved to be a major drawback for China.
China who adopted export-led manufacturing model and sustained it many years is down finding it tough, primarily because of the cost of labour increasing and global manufacturers looking at alternate markets to make their export hub. India seems to have made the right announcements at the right time and the ‘Make in India’ initiative has opened the door for global investment in the manufacturing sector of this country.
Another important and positive factor for India is the political stability, which global investors always look for. The Modi-government has given the right signals and global investors are more than eager to start manufacturing in this country. Moreover, there are no major Chinese investments in the Indian stock market so India is less likely to face any major hiccups from Chinese slowdown.
This is the right time for India to make the move and experts feel that we should take this opportunity to make India an electronic manufacturing hub.