Raghuram Rajan feels India replacing China is a premature thought

Raghuram Rajan a well-known name in Indian finance believes comparing India to China is a premature thought.

Ayush
Ayush
Former Governor of the Reserve Bank of India

At the moment India showed tremendous potential to be a world leader. Not only in terms of manufacturing but also in terms of Geo-politics. Many famous companies like Apple start moving their manufacturing units from China to India. Ex-RBI Governor of India Raghuram Rajan believes that India replacing China is not going to happen anytime soon. It’s a process that takes a long time. While addressing the World Economic Forum press in Davos, Raghuram Rajan said India replacing china at the global level was too premature a thought. Still, India is trying to make a place in Global economic growth. Meanwhile, China is already a leading sector in a number of businesses.ย  However, Ex-Governer also feels that tables can turn around as India is the fifth largest economy. It is growing and has tremendous potential of expanding.

 

Ajit Gulabchand(Chairman & MD of HCC) believes a lot of challenges are coming for India this year. The WEF(World Economic Forum) in its chief economist outlook survey describes the recession is like to hit this year. Furthermore, inflation will peak in terms of food and energy. In the server, it is believed that South Asia like India and Bangladesh, will be benefited from the inflation. As global trends show, manufacturing units are starting to move to these countries. “A slight recovery of the China economy can boost global growth. Still, it has 12 months to go.” Rajan added.

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Rajan furthermore added, “Aware of the fact, China fighting against the pandemic. If this goes on long it might affect the outside world. But any improvement in China can soften the price in the outside world.” When asked about India and China comparatively, Raghuram stated that India has tremendous potential to grow. But right now, it is far behind China. Furthermore, he noted that most policymakers focused on housing and labor markets. According to the report, the United States found a lack of housing sales. Eventually, this fails to make the price down.

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