Chinese slowdown brightens prospects for Indian manufacturing: Experts

With China facing economic slowdown on account of domestic and geo-political reasons, India needs to spruce its manufacturing sector to attract investment and emerge as an alternative global sourcing hub, said experts.

The Chinese economic growth is expected to moderate to 3.5 per cent this year due to various reasons, including disturbances in the property sector and frequent Covid-induced lockdowns.

Besides, the growing tension between the US and China over Taiwan may escalate into geopolitical instability adversely impacting sourcing of inputs and equipment from the world's second largest economy. These developments will have some positive spillovers for India, Sujan Hajra, chief economist Anand Rathi Shares & Stock Brokers said.

"First, uncertainties in China can increase the attractiveness of India as an alternative global sourcing hub. Second, in the emerging market fund allocation by global investors, the share of India can increase at the cost of China," he said. After June, global rating agency Moody's has again slashed China 2022 growth forecast. As per the latest report, the second largest economy in the world expected to grow at 3.5 per cent from earlier projection of 4.5 per cent.