The emergence of China as an economic power in recent decades has changed our world. Meanwhile, India remained stranded with the status of a poor neighbor. But now, after Beijing’s ironclad anti-pandemic policy, and as it clashes with Washington on trade and technology, not a few multinationals are considering India as a worthwhile base for operations.
Thanks to this, the Indian economy, despite prolonged and enormous problems of poverty and infrastructure, is looking to rival its neighboring superpower. Statistics that had previously done Beijing proud are being flaunted in New Delhi: GDP growth is 7 percent this year, thanks to economic liberalization in the private sector, a rapidly growing working population, and the reconfiguration of global supply chains.
India can already rely on a well-educated, English-speaking middle class, which has helped the country develop sectors such as pharmaceuticals and information technology. To consolidate its rise, it will need to sustain the growth of the manufacturing sector and become an export powerhouse. Will it be able to do so? In fact, the former British-ruled nation has just surpassed the United Kingdom in terms of GDP. By a curious coincidence Rishi Sunak, the current British prime minister, is of Indian origin. India has thus become the fifth largest economy in the world.