Global Economy: China’s decline in global economy, a golden opportunity for India and America

The growing distance between America and China is a testament to America’s dynamism and stability. For nearly two decades, China played the role of the world’s factory, but today it is facing many economic challenges. Nearly a third of China’s real estate sector is in deep trouble and its collapse is also impacting its banking sector. China’s dominance in the global economy is declining, which is revealing the strength of America and India.

Good news for India’s economy

America is the world’s largest economy and its contribution to the global economy is increasing. According to the IMF, the US share is likely to reach 26%, the highest in the last two decades. A decade ago the US contributed more than the EU and the UK, but now the US contributes more than their combined contributions.

Meanwhile, China’s share is declining and is likely to fall to 17% in 2024. The growing distance between the US and China is a testament to America’s dynamism and stability. For nearly two decades, China played the role of the world’s factory, but today it is facing many economic challenges. Nearly a third of China’s real estate sector is in deep trouble and its collapse is also impacting its banking sector.

China Plus One Policy

Foreign companies and investors are now turning their backs on China, while many foreign companies are adopting the “China Plus One” policy. The problem of unemployment is increasing rapidly there and China-America tension is not decreasing. There are tensions between China and the United States over a number of issues, and the Chinese government has promoted stricter regulations in the name of national security, forcing foreign companies to comply with emissions limits on its soil.

The contribution of the EU and Britain to the global economy was 30% in 2006, which has now declined to about 21%. Even in 2006, China’s share was five percent, which increased to about 19% in 2020, but since 2021 it is facing a continuous decline.

IT sector is playing a big role

At present, growth is being seen in almost all sectors in India, but there are some sectors which are playing the role of top performers. Among these, IT is at number one, followed by healthcare, FMCG, renewable energy and infrastructure. Talking about the IT sector, Statista’s report states that currently it is a sector with a market size of $26.73 billion, which will become a sector of $44 billion by 2029.

In this regard, when we asked a senior technical expert working at Amity Software what he thinks about the current growth rate in the IT sector. He said that at present there is a lot of demand for software in the market. Indian companies are also getting projects from America, Canada and other countries. One reason for this is to provide the best service at the lowest cost. He says that his company is also paying attention to this.