According to the government s chief economic advisor, while the world is not currently in the golden era of globalisation, global trade volumes do not definitely say if the world is becoming more fragmented
China+1: India s rise in global manufacturing challenges China s dominance. From Make in India to Make for the World, Narendra Modi s vision fuels India s rejection of Chinese influence and the Asian nations is becoming a great candidate for China+1 strategy. As India gains ground, China s decline signals a shift in global supply chains. However, India grapples with policy gaps in its industrial strategy
Foreign Direct Investment: While Chinese firms have been improving their competitiveness, some foreign companies are opting to leave China. Earlier in October, Mitsubishi Motors announced that it would withdraw from production in China, according to Nikkei Asia report.
Mark Mobius, a seasoned emerging market investor, views India as a safe haven for investment amidst global challenges. India ranks as the second-largest portfolio in Mobius Capital Partners after Taiwan. India can become a big gainer from businesses or manufacturing companies moving away from China, he added.
Chinese President Xi Jinping has assured foreign investors that their rights and interests will be protected, as the government seeks to address economic concerns and unpredictable policymaking. China is facing challenges in attracting foreign investment due to depleted funds and cautious investors. The crackdown on foreign consultancy firms, regulatory tightening, and geopolitical tensions have also led to foreign capital leaving the country.