In its latest World Economic Outlook, the International Monetary Fund (IMF) has highlighted a major shift in global manufacturing from advanced economies to emerging markets, with India and China leading the change. This trend underscores the growing influence of emerging economies in the global manufacturing landscape.
The IMF report forecasts India’s GDP growth will moderate to 7% in 2024 and further to 6.5% in 2025, as demand driven by pandemic recovery fades. “Manufacturing production is increasingly shifting toward emerging market economies–in particular, China and India–as advanced economies lose competitiveness,” stated the report.
Additionally, the report points to a shift in consumer behavior from goods to services, boosting growth in the services sectors of both advanced and emerging markets.
