India's growth is outshining China's, but it may soon it hits limits, writes Christopher S. Tang.
About the author: Christopher S.Tang is a distinguished professor at the UCLA Anderson School of Management.
The stars are lined up for India in 2023. In August, the country landed a spacecraft on the moon. Then Modi hosted the G20 summit in New Delhi, highlighting India’s growth on the global stage. First, India has been attracting FDI to further develop several sectors including services, computer software and hardware, telecommunications, automobiles, pharmaceuticals. For example, in 2019, the Indian government relaxed its FDI policy by allowing 100% foreign direct ownership in contract manufacturing, along with smaller shares in single-brand retail trading and digital media.
Third, to create jobs for Indian workers, boost economic growth, and promote exports, India imposed higher tariffs and introduced the “production-linked incentives” scheme in 2020 to provide companies with incentives for sales of products manufactured in India. This scheme has expanded into a $24 billion program focusing on 14 areas including auto components, automobile, electronics systems, telecom equipment, etc.
Unlike China, India’s constitution grants a high level of autonomy to its 28 states, which undermines the ability of the central government to stimulate the economy at the national level. Modi’s 2017 national goods-and-services tax was a notable effort to overcome the balkanization of the economy. But without a centralized system to control the economic development of different states, collaboration and coordination across different states can be challenging.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
India had an impressive year in space—and it’s just getting startedIndia's upcoming space goals include a 2026 crewed mission, plus sending an orbiter to Venus and Mars, too.
Read more »
Islanders' Semyon Varlamov impressive in shutout winWhen backup goalie Semyon Varlamov plays like he did Saturday, earning a shutout in a 2-0 Islanders win, it means things are going according to plan.
Read more »
House Of The Dragon Animation Offers Impressive Recreation Of Aegon, Sunfyre & DreamfyreA new fan-made House of the Dragon animation offers an impressive recreation of Aegon, Sunfyre, and Dreamfyre and drops hints for season 2.
Read more »
Dan Lanning speaks on Oregon's impressive victory over UtahOregon Ducks head coach Dan Lanning stopped by to talk with Jenny Taft about the Ducks' dominant victory over the Utah Utes.
Read more »
10 Most Impressive Canon Force Powers Jedi & Sith Have Never Used In The Star Wars MoviesThe Jedi and the Sith possess an impressive number of powers in the Star Wars movies, but several remarkable Force powers never made it to theaters.
Read more »
42 Cheap But Impressive Problem-Solving ProductsThis leggings organizer is about to make your dresser drawers weep with gratitude.
Read more »