New Delhi [India], February 28 : India has the potential to produce technology at a lower cost than China if it can master and manufacture it efficiently, said World Bank Country Director Auguste Tano Kouame. He highlighted that India's large workforce gives it a competitive edge in the global market.
In an exclusive conversation with ANI, Kouame explained how economic growth affects a country's ability to compete. "From an economic perspective, when countries experience income growth, their comparative advantage shifts. Typically, as incomes rise, labor costs increase, making it harder to compete with lower-cost economies. So today, if you take a given technology, assuming India masters that technology produce it, it will produce it at a lower cost China and be able to sell it at a lower cost China. So of course, the rest of the world would buy from India," he said.
The key question, according to Kouame, is identifying the industries where India has a cost advantage. While China is known for its efficiency and speed, India has the potential to match or even surpass it in certain sectors.
One such area is green technology. India's domestic market already demands green solutions, making it a promising sector for development. By focusing on green technology, India can build expertise, meet domestic needs, and position itself as a global supplier of eco-friendly products.
He said, "India's domestic market already demands green technology solutions, and by focusing on this sector, India can develop expertise quickly".
Beyond green technology, India also benefits from strong trade ties with various countries. If India can manufacture efficiently at a lower cost, it can become a preferred global trading partner.
He added, "I think India should have the confidence. Also, that as a trading partner, India has good relationship with many countries in the world. So if India can really produce at a lower cost and more efficiently, you know, we can be hopeful that other countries will want to buy. India can be a good exporter for goods and services."
While India has significant potential, challenges remain. One major challenge is job creation. With a rapidly growing workforce, India needs to ensure enough employment opportunities. If enough jobs are created, it will not only strengthen the labour market but also drive economic growth and social inclusion.
Another challenge is sustaining high growth in a tough global economic environment. While India has a strong domestic market, it also depends on exports. However, global trade restrictions and slowing economic growth worldwide make it harder to access international markets. India must navigate these obstacles strategically.
Despite these challenges, he noted that India has consistently grown at an average of over 7 per cent in the past three to four years, even during unfavourable global conditions. The COVID-19 pandemic and rising trade barriers did not significantly slow down India's growth.
Kouame that by implementing key internal reforms, investing in strategic industries, and leveraging its workforce, India can strengthen its global position. If done right, India can not only compete with China but also move closer to its goal of becoming a developed country by 2047.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor