India’s Business — Beyond Demographics
At many world occasions/forums, Indian policymakers represent India as an emerging export competitive hub — especially in manufacturing ‘Make In India’.
Do it make India vulnerable? Or Should India create a growth model based on its 1.3 billion population? The topic is debatable for policymakers.
Let’s view India based on its vulnerability with respect to trade!
India has a huge trade deficit with China and many countries in the world. However, trade relations with the US are in surplus mainly due to Pharma and Information technology Industries in India.
Again! If there is a slowdown in the US and EU countries India trade is at risk. Similarly, countries like China are vulnerable in terms of trade. And hence, It would never engage in war, and should maintain peace across borders and territories like Akshay-Chin and Arunachal Pradesh. [This could be one of India’s diplomatic move!]
On the Export’s side, half of India’s export is in the top 4 countries, leading with the US.
The US, UAE, China and Hong Kong count half of the exports in India. And that makes India vulnerable!
Yes, in the time of de-globalization and events like the US-China trade war India needs to find ways to increase its exports beyond these 2 countries — mainly the US, which counts more than 23%.
India is definitely at risk — based on its concentrated portfolio — in trade. And policymakers should address these concerns.
