SNW(SH:600628) Sou Hu Cai Jing·2025-11-25 10:44Core Viewpoint - India's rapid economic development has led to speculation that it may surpass China to become the new global manufacturing hub, with the government promoting the "Make in India" initiative [2][6]. Economic Status of India - On May 24, 2025, India's economic scale was reported to have surpassed Japan, with projections to overtake Germany within three years, positioning India as the world's fourth-largest economy [6]. - Despite the impressive GDP figures from the service sector, India's industrial and agricultural sectors remain underdeveloped, raising concerns about the sustainability of its economic growth [12][10]. Challenges in Industrial Development - India's industrial development is hindered by several factors, including inadequate infrastructure, high transportation costs, and frequent changes in tax policies that deter foreign investment [18][20][24]. - The country faces significant power shortages, particularly during peak summer months, which affects factory operations and overall productivity [21]. - The quality of the labor force is also a concern, as many young workers lack the necessary skills and training, impacting the overall industrial output [23]. Comparison with China - China's manufacturing sector is shifting westward due to rising labor costs in the southeast, while its well-established infrastructure and resource availability provide a competitive edge over India [26][30]. - The transition of manufacturing to China's central and western regions is supported by lower labor costs and improved infrastructure, which India currently lacks [28][30].