The International Monetary Fund (IMF), in its latest World Economic Outlook report, has highlighted a significant global shift in manufacturing production towards emerging markets like India and China, as advanced economies lose competitiveness.
This trend indicates that emerging economies like India are becoming key players in the global manufacturing landscape.
The IMF’s latest World Economic Outlook report highlights significant shifts in global manufacturing towards emerging markets like India and China. It projects India’s GDP growth to moderate to 7% in 2024 and 6.5% in 2025 as pandemic-induced demandwanes.
“Manufacturing production is also increasingly shifting toward emerging market economies–in particular, China and India–as advanced economies lose competitiveness’ said IMF in its report.
The IMF report also noted that there is also a broader shift in consumer behaviour from goods to services. This shift is fueling growth in the services sector in both advanced and emerging markets.
Vanguard
