COVID-19 pandemic may be good news for India’s economy or may be bad for China
Due to the adoption of free-market principles in China, it has become emerging market economy and one of the world’s most hyped investment locations due to promising opportunity to many companies and investors.
Today, in China, the epicentre of the COVID-19 pandemic, it appears that its economy is to be going down. In the first two months of this year, its economy was already damaged due to pandemic and now number of foreign investors and foreign companies are stepping out from the China and looking to Invest in other Asian countries and India can grab these opportunities.
An overview on China Economy: China is the second largest economy in the world with GDP of $14.4 Trillion (2019). But, in 1950s, China it was counted among the poor society and from 1978, under the leadership of Chinese leader Deng Xiaoping (China’s Economic Reformer) and Chinese government decided to break with its Soviet style economic policies by gradually reforming the economy according to free-market principles. And opening up trade and investment with the West, in the hope that this would significantly increase economic growth and raise living standards keep focus on Heavy Industries for the economy growth. And today, China is the world leader in manufacturing and also produces almost half of the world’s crude steel (World 1,869.9 Mt and China – 996.3 Mt in 2019).