China slowdown opens avenues for India's economy

Subject

The impact of China's slowdown on India.

Significance

Finance minister Arun Jaitley has seen the slowing of China's economy as the 'moment' for India to assert its own claims to growth. Already benefiting from the decline in global commodity prices, India's 'Make in India' campaign aims to seize a larger share of global manufacturing and investment from China. Yet there is a downside: China is itself a major trade and investment partner for India.

Impacts

• Land acquisition hurdles will be overcome most easily at the regional level.
• India's skills gap is large but the government has yet to prioritise educational reform and to finance vocational training sufficiently.
• Increased China-India strategic competition could undercut bilateral economic cooperation.