{"id":141804,"date":"2021-10-19T18:25:30","date_gmt":"2021-10-19T12:55:30","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=141804"},"modified":"2021-10-22T17:56:06","modified_gmt":"2021-10-22T12:26:06","slug":"slide-in-chinas-gdp-growth-and-implications-for-india","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/slide-in-chinas-gdp-growth-and-implications-for-india\/","title":{"rendered":"Slide in China\u2019s GDP growth and implications for India"},"content":{"rendered":"\n

Synopsis: <\/strong>Growth slow down in China can impact global economic recovery and India in particular.<\/p>\n

Introduction<\/strong><\/h5>\n

China\u2019s third-quarter GDP growth slowed to 4.9%<\/strong> as industrial output rose way below expectations in September, according to data released by the country\u2019s National Bureau of Statistics.<\/p>\n

A slowing Chinese economy is worrying wrt trade and the overall loss of momentum to the global post-pandemic economic recovery. India too can be affected adversely.<\/p>\n

What are the reasons behind economic slowdown in China?<\/strong><\/h5>\n

Massive fuel crunch and worries of a systemic crisis in its real estate business precipitated by the Evergrande fiasco, and a souring of business sentiment amid the federal government\u2019s crackdown on multiple Chinese sectors and marquee companies.<\/p>\n

How China’s growth output is being affected?<\/strong><\/h5>\n

Loss of Capital to sustain Growth:<\/strong> According to a Reuters report, businesses were less keen to invest in new projects amid the federal government\u2019s crackdown on multiple Chinese sectors.<\/p>\n

Power Crisis: <\/strong>The power shortage had a \u201ccertain impact\u201d on normal production. Factories and units across the country had to curtail output due to surge in coal prices.<\/p>\n

Real estate sector Crisis<\/strong>: The drop in fixed asset investment is being primarily attributed to a perceptible slowdown in real estate investments. In August, real estate major Evergrande warned of a default and subsequently missed payments to investors in its offshore US dollar-denominated debt.<\/p>\n

Why the present situation may be of concern to India?<\/strong><\/h5>\n

India could be impacted, given India\u2019s deepening trade with China and its import dependence. For example,<\/p>\n

Import dependence<\/strong>: India imports items such as smartphones and automobile components, telecom equipment, active pharmaceutical ingredients, and other chemicals mostly from China. India\u2019s trade deficit with China increased to $46.55 billion in the first nine months of 2021, up from $29.9 billion in the year-ago period.<\/p>\n

Increasing Bilateral trade<\/strong>: India\u2019s total trade with China touched $90.38 billion during the January-September period, and is likely to cross $100 billion by the end of the year. According to India\u2019s Commerce Ministry data, China was India\u2019s top trading partner in the April-July period.<\/p>\n","protected":false},"excerpt":{"rendered":"

Synopsis: Growth slow down in China can impact global economic recovery and India in particular. Introduction China\u2019s third-quarter GDP growth slowed to 4.9% as industrial output rose way below expectations in September, according to data released by the country\u2019s National Bureau of Statistics. A slowing Chinese economy is worrying wrt trade and the overall loss… Continue reading Slide in China\u2019s GDP growth and implications for India<\/span><\/a><\/p>\n","protected":false},"author":10316,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10351,8689,216],"class_list":["post-141804","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-chinas-gdp-growth-and-india","tag-effect-of-policies-and-politics-of-developed-and-developing-countries-on-indias-interests","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704836229},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/141804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10316"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=141804"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/141804\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=141804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=141804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=141804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}