Business News / China's dominance in global economy is decreasing, America and India are dominant

Vikrant Shekhawat : May 04, 2024, 08:06 AM
Business News: America is the largest economy in the world and its contribution to the global economy is increasing. According to the IMF, the US share is likely to reach 26%, the highest in the last two decades. A decade ago, America's contribution was more than that of the European Union and Britain, but now America's contribution has become more than their combined contribution.

Meanwhile, China's share is declining and is likely to fall to 17% in 2024. The gap between America and China is growing and is a testament to America's dynamism and stability. For nearly two decades, China played the role of the world's factory, but today it is facing many economic challenges. Nearly a third of China is engulfed in deep crisis in the real estate sector, and its collapse is also affecting the banking sector there.

China plus one policy

Foreign companies and investors are now turning their backs on China, while many foreign companies are adopting the policy of “China Plus One”. The problem of unemployment is increasing rapidly there, and China-America tension is also not decreasing. There are tensions between China and the United States over a number of issues, and the Chinese government has promoted stricter regulations in the name of national security, forcing foreign companies to face limits on emissions on its soil.

China's declining share

In the year 2006, the contribution of European Union and Britain in the global economy was 30%, which has now come down to about 21%. China's share was also five percent in 2006, which increased to about 19% in 2020, but from 2021 it is facing a continuous decline and this year its share is estimated to be up to 17%. During this period, Japan's share is also expected to decline to about 4%.

In 2006, Japan's share was about eight percent. India's share in the global economy is continuously increasing and this year it is expected to reach four percent, equal to Japan. India is currently the fifth largest economy in the world and is expected to overtake Japan soon.

IT sector is playing a big role

At present, growth is being seen in almost all sectors in India, but there are some sectors which are playing the role of top performers. Among them, the first number is IT, followed by healthcare, FMCG, renewable energy and infrastructure. Talking about the IT sector, Statista's report says that currently it is a sector with a market size of $26.73 billion, which will become a sector of $44 billion by 2029.

On this, when we asked a senior tech expert working in Amity Software, what he thinks is the pace of growth being seen in the IT sector right now. He told that currently a lot of demand is being seen for software in the market. Indian companies are also getting projects from America, Canada and other countries. One reason for this is to provide the best service at a low price. He says that his company also focuses on this.