India Bound for Manufacturing Shift

As China looks to wean its economy off a heavy dependence on investment and exports, India is embarking on the very same growth model that could see the South Asian nation assuming the role of the world’s factory floor within the next decade.

Prime Minister Narendra Modi has articulated in recent speeches and through policy actions that Asia’s third largest economy is in need of a growth model which centers on export-oriented manufacturing, heavy infrastructure building and urbanization.

“This suggests a shift from India’s current services-driven growth trajectory to an East Asian growth model based on the mass deployment of labor and capital,” Sanjeev Sanyal, global strategist at Deustche Bank wrote in a report.

If India succeeds, it has the potential to become the factory of the world, Sanyal said in an interview with CNBC, a role assumed by China in the past decade.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza