The shine of the Chinese economy faded in front of India! China’s GDP was lower than expected in April-June

China GDP Declines: Despite ending the lockdown imposed after Kovid, the shine of the Chinese economy seems to be fading. Between April and June, the second quarter of 2023, China’s GDP has been 6.3 percent less than expected. That is, in the second quarter of the current year, the Chinese economy has grown at the rate of 6.3 percent. Which is much lower than the RBI’s estimate for the April to June quarter for India. RBI has expressed the expectation of the Indian economy to grow at the rate of 8 percent during the first quarter of 2023-24 from April to June. That is, in terms of the pace of economic development, India is proving to be heavy on China.

Investors are leaving China!

In today’s date, China is India’s biggest trading rival country. These days the growth projections of the economy of India and China are discussed all over the world. Under the China Plus One Policy, the world’s big companies which are already present in China are increasing their investment in India. That is, even the investors of the stock market are leaving China and investing in the Indian stock market. A big example of this is that since March 24, 2023, the Indian stock market is witnessing a one-sided boom.

Unilateral rise in stock market due to FPI

Due to the increasing investment of foreign investors, Sensex has been successful in crossing the historical figure of 66,000 and Nifty 19500. Whereas after the release of China’s GDP figures, there has been a decline in the stock market there. The concern of China is that the pace of economic development is going to slow down there. A decline is being seen in China’s exports to other countries. China’s GDP in the second quarter has been 6.3 percent, which is much better than the figure of 4.5 percent in the first quarter. But it is less than the estimates of the market and experts.

India’s economic growth rate is better than China

Where China had grown at the rate of only 4.5 percent in the first quarter. While the Indian economy grew at a rate of 6.1 percent better than expected between January and March in the fourth quarter of the financial year 2022-23, due to which the GDP was 7.2 percent in the entire financial year. And it is expected that the pace of development of the Indian economy is going to be even more spectacular between April and June in the first quarter of 2023-24. RBI has projected an economic growth rate of 8 percent in the first quarter of April-June. While the condition of India’s biggest rival China’s economy is not much better. One, the pace of development is slowing down there. On top of that, foreign investors are also eager to take their business from China to other countries, due to which China seems to be facing a double blow.

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