China Stimulus: What It Means for Indian Manufacturing & Stock Market

Published on: October 01, 2024 - The long-awaited stimulus offered by China last week has injected both hope, and money into the Chinese economy and stock market. Put together $187 billion both in monetary and fiscal stimulus is a lot more than what was expected. As things seem right now, China’s resurgence is imminent. This is mostly bad news for India, but perhaps a few silver linings could soften the blow. If Chinese factories spring back to life with the new stimulus, then the diversification to India or the China + 1 strategy may be pushed aside for now, or forever. India’s pivot to a being a manufacturing-led economy on the back of a sleeping dragon may remain just a pipe dream, unless there is real value India could add.