'China's net exports = 26% of India’s GDP': Finfluencer lays bare stark economic truth

[Beijingwalker]

'China's net exports = 26% of India’s GDP': Finfluencer lays bare stark economic truth​

Despite initiatives like the Production-Linked Incentive (PLI) scheme, launched in 2020 to strengthen domestic manufacturing, India’s dependency has only grown, raising questions about its global competitiveness.​

Business Today Desk
Updated Jan 17, 2025, 9:54 AM IST

Akshat Srivastava, founder of Wisdom Hatch, in a post on X laid bare the economic chasm between India and China with a stark comparison: while China’s trade surplus stands at a staggering $1 trillion—26% of India’s GDP—India grapples with a $73.5 billion trade deficit.

“Both countries were net importers until the late ’80s. Today, China is building next-gen exports in robotics, semiconductors, and AI. India? Our biggest hope seems to be exporting smart people and relying on remittances,” he wrote.

The numbers reflect a deep reliance on Chinese imports, especially in critical sectors such as electronics, chemicals, and renewable energy. Despite initiatives like the Production-Linked Incentive (PLI) scheme, launched in 2020 to strengthen domestic manufacturing, India’s dependency has only grown, raising questions about its global competitiveness.

Economists argue that India needs structural reforms to address this imbalance.

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Deloitte India’s Rumki Majumdar advocates for increased investment in research and development: “India must enhance its manufacturing competitiveness by moving up the value chain and incentivizing local production.”

With Union Budget 2025 around the corner, experts are urging decisive measures. Expanding the PLI scheme to include more sectors, diversifying supply chains, and encouraging foreign direct investment (FDI) are some of the strategies being discussed.

Gopal Jain, Managing Partner at Gaja Capital, recently called for a pragmatic approach: “India must welcome global investments and focus on creating mutually beneficial trade partnerships. This is crucial for reducing dependency and strengthening our economic resilience.”

 

[SoulSpokesman]

@Beijingwalker

Your tallel than mountain fliend is even worse in any comparative.

Regards

 

[Puncher]

the proverty thrashold per person in USA is $14580 in 2023 vs Chinese per capita income of $13000 in 2024.. just a data point for you @Beijingwalker

 

[Beijingwalker]

the proverty thrashold per person in USA is $14580 in 2023 vs Chinese per capita income of $13000 in 2024.. just a data point for you @Beijingwalker

And India's? why you guys have to drag US in every thing? What does it have to do with US? This article is about trade surplus and deficit.
True that US also suffers massive trade deficit, but US can just print money, can India?

 

[AjayGhatak]

Dont shoot the messenger folks, he is telling you only the truth. If it makes you unhappy make and export things.

If you do not like "influencers", here is an Indian journalist (a centrist, not extremely left leaning or pro congress one) saying EXACT same thing....

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[Puncher]

And India's? why you guys have to drag US in every thing? What does it have to do with US? This article is about trade surplus and deficit.
True that US also suffers massive trade deficit, but US can just print money, can India?

Why do you need to scrape the internet to post a nonsensical comment like this? Why don’t you have the courage to say that Chinese domestic consumption is slowing down significantly, hence leading to a ballooning trade surplus?

 

[Puncher]

Dont shoot the messenger folks, he is telling you only the truth. If it makes you unhappy make and export things.

If you do not like "influencers", here is an Indian journalist (a centrist, not extremely left leaning or pro congress one) saying EXACT same thing....

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We all appreciate the achievements of the Chinese economy. However, this time around, their ballooning trade surplus is due to sluggish domestic consumption growth and U.S. companies importing en masse and hoarding cheap Chinese goods before Trump moves into the White House and imposes sanctions

 

[Beijingwalker]

Why do you need to scrape the internet to post a nonsensical comment like this? Why don’t you have the courage to say that Chinese domestic consumption is slowing down significantly, hence leading to a ballooning trade surplus?

Why I have to scrape, it's just today's news.

 

[Beijingwalker]

We all appreciate the achievements of the Chinese economy. However, this time around, their ballooning trade surplus is due to sluggish domestic consumption growth and U.S. companies importing en masse and hoarding cheap Chinese goods before Trump moves into the White House and imposes sanctions

US trade war against China has been around for over 5 years alreadly ,and China's surplus just increased instead of decrease, besides, the share that US exports in the overal China's foreign exports dropped sharply in recent years, now China's biggest trading partner is Asean.

Where are all those exports going?​

The officials emphasized China’s efforts to expand trade with countries participating in its “Belt and Road” initiative to expand infrastructure construction and trade across much of the globe. Trade with those countries accounted for about half of China’s total trade last year

 

[Beijingwalker]

We all appreciate the achievements of the Chinese economy. However, this time around, their ballooning trade surplus is due to sluggish domestic consumption growth and U.S. companies importing en masse and hoarding cheap Chinese goods before Trump moves into the White House and imposes sanctions

 

[AjayGhatak]

We all appreciate the achievements of the Chinese economy. However, this time around, their ballooning trade surplus is due to sluggish domestic consumption growth and U.S. companies importing en masse and hoarding cheap Chinese goods before Trump moves into the White House and imposes sanctions

The bigger issue at hand is that they can and are exporting MASSIVE amount of commodities and specialised goods. To the point they are undercutting even after any tariff. And they due to surpassed domestic demand, they can pump out even more. Not to mention their carefully managed currency, which should be 10x higher if it were free floating, makes it impossible to replace them on cost alone.

The even bigger point is that now India's trade deficit vis a vis China is so massive that it is a strategic vulnerability. If China turns off the tap of cheap imports, a lot of Indian businesses will fold and it will trigger a massive recession in India while having almost NO impact on China because India forms an insignificant part of Chinese trade.

So yes, it is a very real and very present vulnerability that no amount of argument can fix. The only way around is to manufacture, manufacture and then some more manufacture. Start with what ever can be done, do not worry if it is only screw driver manufacturing, just do it and build over time.

Also attract captial like crazy. Ask the left leaning populists to shut their mouth. Devalue currency and make trade the top most priority.

 

[harpy1]

China export is 50% greater than USA
Triple Germany and France UK
Five times Indian exports
And the rest of the world is just tiny

It's not just India which incidentally is the fifth largest gdp and exporter in the world regardless

 

[Thinking]

Akshat Srivastva can't lead a fatman to a buffet, let alone give someone a sound financial advise.

 

[Thinking]

Dont shoot the messenger folks, he is telling you only the truth. If it makes you unhappy make and export things.

If you do not like "influencers", here is an Indian journalist (a centrist, not extremely left leaning or pro congress one) saying EXACT same thing....

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For more detailed information, see our cookies page.

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Idiotic comparison. Not only INDIAN PCI is measly 2700 USD (and falling), India simply can't enact policies that can lead to massive "export" oriented economy. It can't even build livable cities!

These losers can't give you means to all achieve all the BS they spout.

 

[AjayGhatak]

Not only INDIAN PCI is measly 2700 USD (and falling)

This is false. India's GNI per Capita (aka PCI) is NOT falling. It is 2700 but it is not falling at all.

Source : https://data.worldbank.org/indicator/NY.GNP.PCAP.CD?locations=IN

India simply can't enact policies that can lead to massive "export" oriented economy. It can't even build livable cities!

Again, you got it backwards. Countries raise income first and then build liveable cities.

These losers can't give you means to all achieve all the BS they spout.

I am not sure which year you were born in, but there has been massive progress in India. Its just that when compared to China it has been extremely slow. Had there been no China, India would have been considered a very strong case of economic turn around. Its once you put it along side China, you understand how slow India has been and so behind it is.