India has a high population of 6% based on its solid demographic structure and policy support It is expected to maintain growth, especially in recent years, and it has strengthened its ties with the United States. The Indian government actively manufactures various fields such as electronics and telecommunications. This is actually in line with the expansion of U.S. Indo-Pacific intervention while fostering strengthen high-tech and military exchanges.
The Indian government‘s excessive protectionism, poor institutions, and infrastructure lead to its own industrial development. It acts as an obstacle to productivity improvement and has clear limitations as a global production base. Furthermore, India’s high-power transmission and distribution losses (17%) and insufficient large ports infrastructure such as (India’s executive director among the world’s top 50 ports) is very poor compared to China high value-added goods and significant mass production challenges.
The government policy raises trade barriers, including Asia’s highest tariff rate (18%). As a result of companies focusing on domestic demand rather than exports, their own innovation engines have weakened. On the contrary, side effects such as increased dependence on the outside world occur. Due to the nature of India, where the authority of local governments is strong due to different religions, races, etc. Establishment of production bases by foreign companies due to the complexity of taxes and laws compared to other countries. Therefore, India’s economy will be difficult to replace China for a considerable period of time in the future, but its growth in consideration of potential and geopolitical benefits.
