India—Ready to Step into China’s Shoes?

PGIM Fixed Income

September 2019

Gerwin Bell, PhD, Lead Economist, Asia Global Macroeconomic Research

India may be well placed to replicate China’s rise over the last three decades but the chance of success rests on India being able to drastically increase domestic savings and economy-wide productivity. The current situation, with China losing cost competitiveness and being in the crosshairs of a trade conflict, offers an opening for India. It is now important for India to focus on essential reforms and its vision to shift to an investment- and export-led growth model.