India can produce and sell technology at a lower cost than China: World Bank

India has the potential to produce technology at a lower cost than China if it can efficiently master and manufacture it, stated World Bank Country Director Mr. Auguste Tano Kouame. He emphasised that India’s large workforce provides a competitive advantage in the global market. As economies grow, rising incomes lead to higher labour costs, making it harder to compete with lower-cost nations. However, if India successfully masters a given technology, it could produce and sell it at a lower cost than China, attracting global buyers. Green technology is a key area in which India holds promise, as domestic demand for eco-friendly solutions already exists. By developing expertise in this sector, India can meet local needs and position itself as a global supplier. Strong trade ties with multiple countries further enhance India's prospects as a preferred manufacturing partner.   

Despite its potential, India faces challenges, particularly in job creation. With a growing workforce, ensuring sufficient employment opportunities is crucial for economic growth and social inclusion. Another hurdle is sustaining high growth amid global economic uncertainties, trade restrictions, and slowing international markets. However, India's economy has expanded at an average of over 7% in the past three to four years, even during adverse conditions like the COVID-19 pandemic and rising trade barriers. He stressed that with strategic internal reforms, investment in key industries, and efficient workforce utilisation, India could strengthen its global standing, compete with China, and progress toward becoming a developed nation by 2047. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.