Wen Chun Gongzi
Don't underestimate the Indians, even if India is weak now, we can't take it lightly!
When Modi took office in 2014, he raised his arms and chanted the grand slogan "Make in India".
At that time, Prime Minister Narendra Modi pledged with great ambition that India's manufacturing sector would account for 25% of GDP by 2022, making it an important pillar of the country's economic growth.
According to statistics, in 2022, the share of manufacturing in India's GDP reached only about 13.3%, well below the expected target of 25%. This suggests that despite some progress, India's manufacturing sector is not growing to the level that the Modi government would have liked.
While the development of India's manufacturing sector has failed to meet initial expectations, the RBI remains optimistic about the future of the Indian economy. The Reserve Bank of India predicts that by 2032, India is on track to become the world's second-largest economy, after China, while the United States will be in third place.
Why should we not underestimate India? Because India is now the largest in the world in terms of population and its demographic structure is still quite good, mainly because there is enough young labor.
According to data released by India, as of 2022, only 6.9% of India's population is over 65 years old, and the median age of the population is only 27.9 years. This young demographic structure has given India a huge market size and an abundant pool of cheap labor. The increase in the young population has brought about two significant economic effects: first, the huge market size, which provides a broad space for the consumption of various goods and services, and second, the provision of a large number of cheap labor, which is particularly important for labor-intensive industries.
International capital is keenly aware of the potential of the Indian market, and many multinational companies such as Apple, Foxconn, Xiaomi and VIVO have made large-scale investments in India. These companies are bullish on India's low-cost labor and high-growth potential market, hoping to take their place in this land of opportunity.
Well-known companies such as Apple, Foxconn, Xiaomi, VIVO, etc. have made large-scale investments in India. This is enough to show that the Indian market is still promising.
India's economic growth in recent years has indeed been impressive, but the sustainability of this growth is a complex issue that is influenced by a number of factors.
One of the key factors is the foreign investment that has contributed significantly to the Indian economy. With the gradual development of India's domestic industry, when these multinational companies have gained a foothold in the Indian market, the Indian government has begun to take a series of measures to restrict the withdrawal of foreign investment. This practice of "India makes money and India spends" undoubtedly worries many foreign-funded enterprises. Whether it is technology giants such as Samsung and Apple, or consumer electronics manufacturers such as Xiaomi and VIVO, they have all been restricted and suppressed by the Indian government to varying degrees.
Second, India's economic development still faces some fundamental challenges. Infrastructure, education and religion are the key factors restricting the further development of India's economy. Despite India's large population base, a large part of the population is not well educated, which limits the potential and productivity of the labor market. Therefore, it remains to be seen whether India will be able to turn its demographic dividend into a driver of economic growth.
What's more serious is that there is not only a huge gap between people in India, but also different beliefs. These are extremely frustrating problems that are not easy to solve in the short term.
It is a natural vision for any country to aspire to become a great power or great power. The construction of a strong country is not only the rise of the economy, but also requires breakthroughs in many fields such as science and technology, culture, and education.
History has taught us that the realization of this dream is not achieved overnight, but needs to be down-to-earth and move forward step by step. How can an unrealistic, big, empty slogan like India's dream come true?