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5) The Chinese economic slowdown will have significant impact on the Indian economy. Discuss.(250 words)

Topic Effect of policies and politics of developed and developing countries on India’s interests,

5) The Chinese economic slowdown will have significant impact on the Indian economy. Discuss.(250 words)

Economictimes

 

Why this question

China is the world’s second largest economy and an important trade partner of India. In this context it is important to discuss the impact of Chinese slowdown on india.

Directive word

Discuss- this is an all-encompassing directive which mandates us to write in detail about the key demand of the question. we also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.

Key demand of the question.

The question wants us to write in detail as to how Chinese slowdown may impact Indian economy- in bad as well as the good way.

Structure of the answer

Introduction- write a few introductory lines about the  Chinese economic slowdown. E.g China’s economic growth cooled to its slowest in 28 years in 2018. China’s Dec exports unexpectedly fell 4.4% from a year earlier, with demand in most of its major markets weakening. Imports also saw a shock drop, falling 7.6% — the biggest decline since July 2016.

Body-

DIscuss in points as to how Indian economy could be affected due to Chinese slowdown. E.g

  • China has the biggest share in India’s imports, at more than 16%.
  • It is also the fourth largest export market for the country, with a 4.39% share. So the impact on India is unlikely to be huge.
  • If yuan weakens, it makes imports from China cheaper; excess capacities in China could lead to dumping of products. This could hurt Indian companies.
  • India’s exports of raw material to China could suffer.
  • On the positive side, India could become a destination for Chinese companies; it would make economic sense for Chinese companies to shift manufacturing of products they sell in India.
  • India could  also gain from Chinese help in infrastructure.

Conclusion– based on your discussion, form a fair and a balanced conclusion on the given issue.

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