2024-04-11 18:41:30
New Delhi: China has acquired enmity with the entire world. The result has become very dangerous. Fitch has changed China’s sovereign credit rating outlook to negative. In other words, Dragon Fail is on his report card. Negative rating indicates increasing risks to the economy. Its effect is beginning to be seen. There is a change in the strategies of companies. He has started becoming disillusioned with China. Frustrated with the fabricated policies, they have started turning towards India. At the same time, India is in full force. The projections of all the financial institutions seem to be in its favor. Now the Asian Development Bank (ADB) has also changed its growth estimates and increased it.
By showing everyone an eye, China has taken the flying arrow away. Dragon’s relations with most of the countries including America, Europe and India, which consume its goods, have deteriorated. Only China’s aggression is responsible for this. As soon as rating agency Fitch made its outlook on China negative on Wednesday, it described the move as ‘disappointing’. This change in Fitch’s outlook shows that more challenges await China. This could be a double whammy for him. China is already troubled by slow growth. Fitch’s move may make foreign loans expensive for it.
Companies forced to change strategy
The conditions in China have forced the companies working there to change their strategies. Damson Tech is one of them. The company has started planning to bring its manufacturing work from China to India. Damson manufactures power banks, small speakers and mobile related products. Damson Technologies is planning to transfer half of its manufacturing work from China to India. For this, the company will make an initial investment of Rs 150 crore in the current financial year. Ritesh Goenka, MD of electronics manufacturing service provider Damson Technologies, has said that the company is currently manufacturing equipment in China. Now there is a plan to transfer half the manufacturing work to India. The reason for this is the sanctions of many countries on China along with the benefits being given under government schemes in India. Damson manufactures and sells products under its own brand name ‘Just Corsica’.
India is running in development
Goenka said, ‘Many countries have imposed various types of restrictions on China. When we export from China to America, there is a 25 percent duty. It is only five percent when exported from India. The company is setting up a factory near Ahmedabad. An investment of Rs 50 crore is being made in this. Apart from this, an investment of Rs 100 crore is being made in marketing, research and development along with creating a team of about 350 employees. The company will initially produce chargers, cables, power banks, TWS earbuds and home audio systems. However, China will continue to produce and supply smartwatches and smart glasses.
Meanwhile, the Asian Development Bank (ADB) has revised India’s growth projections for the financial year 2024-25 citing strong services sector along with public and private investment. ADB has increased it to 7 percent from the earlier 6.7 percent.