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India vs China: The Battle for Manufacturing Supremacy in the Global Market

In Depth Analysis

By KEVIN FRENCHPublished 7 months ago 5 min read
1, CC BY 3.0 <>, via Wikimedia Commons

The manufacturing industry is a significant contributor to the economic growth of any country. India and China, both being populous nations, have immense potential in this sector. However, the manufacturing industries in both countries have had different journeys, and their paths have been influenced by various factors, including wars and geopolitical conflicts. In this article, we will explore the India-China war on manufacturing, its history, current status, and future possibilities.

The history of India and China's manufacturing industries goes back centuries. India was once known as the "Golden Bird" due to its thriving manufacturing industries, including textiles, metalworking, and shipbuilding. However, the country's manufacturing sector declined during the British Raj, as the colonial power pushed India into a raw materials-based economy, exporting raw materials and importing finished goods.

On the other hand, China's manufacturing industry began to take off after the establishment of the People's Republic of China in 1949. The government invested heavily in infrastructure, and the country's vast population provided a cheap and abundant labor force. The manufacturing industry became the engine of China's economic growth, and the country quickly became known as the "factory of the world."

The first major conflict between India and China that impacted their manufacturing industries was the Sino-Indian War of 1962. The war led to a temporary suspension of economic ties between the two countries, and India began to implement protectionist policies to build up its domestic manufacturing industry. The government established various public sector enterprises in industries such as steel, heavy engineering, and defense. However, these measures did not have a significant impact, and India's manufacturing industry continued to lag behind.

China, on the other hand, continued to invest in its manufacturing industry and opened up to foreign investment in the 1980s. The country's manufacturing sector grew rapidly, and it became a major player in the global market. China's accession to the World Trade Organization (WTO) in 2001 further boosted its manufacturing industry, as it opened up new opportunities for exports.

The India-China war on manufacturing intensified in the 21st century. India's government launched the "Make in India" campaign in 2014, with the aim of boosting the country's manufacturing industry and making it a global manufacturing hub. The campaign aimed to attract foreign investment, improve infrastructure, and ease regulations for businesses. However, the campaign has not yet achieved its intended impact, as India's manufacturing industry still faces several challenges, including a lack of skilled labor, inadequate infrastructure, and complex regulations.

China's manufacturing industry, on the other hand, has continued to grow and dominate global markets. The country's low labor costs, large-scale production, and efficient supply chain management have made it an attractive destination for foreign investment. China has also invested heavily in research and development, leading to the emergence of new industries such as electric vehicles and 5G technology.

The ongoing COVID-19 pandemic has further highlighted the differences between India and China's manufacturing industries. The pandemic led to disruptions in global supply chains, and countries around the world began to reevaluate their dependence on China for critical supplies. India, with its large pharmaceutical industry, saw an opportunity to fill the gap and began to ramp up production of drugs and medical supplies. However, India's manufacturing industry faced several challenges, including supply chain disruptions, labor shortages, and regulatory hurdles.

China, on the other hand, was quick to recover from the pandemic and resume its manufacturing activities. The country's government launched several measures to support its manufacturing industry, including tax breaks and subsidies for businesses. China's manufacturing sector also benefited from increased demand for products such as personal protective equipment (PPE) and electronics, which saw a surge in demand during the pandemic.

Looking to the future, the India-China war on manufacturing is likely to continue. India's government is taking steps to boost its manufacturing industry, including implementing reforms to ease regulations and improve infrastructure. The government has also launched several initiatives, including the Production Linked Incentive (PLI) scheme, which aims to boost domestic manufacturing in key sectors such as electronics and pharmaceuticals. The government has also announced plans to increase investment in research and development and build a skilled workforce to support the manufacturing industry.

However, India still faces several challenges, including the need to improve its infrastructure and ease regulations to make it easier for businesses to operate. India also needs to address the issue of its skilled labor shortage, which has been a long-standing challenge for the country's manufacturing industry. The country will need to focus on upskilling its workforce and providing them with the necessary training to support its growing manufacturing industry.

China, on the other hand, will continue to dominate the global manufacturing industry, thanks to its large-scale production, efficient supply chain management, and investment in research and development. The country's government has also announced plans to shift towards high-end manufacturing and increase investment in emerging technologies such as artificial intelligence and 5G. However, China also faces challenges, including rising labor costs and an aging workforce, which could impact the country's long-term growth prospects.

The India-China war on manufacturing is not just about the two countries' economic competitiveness but also their geopolitical ambitions. Both countries see manufacturing as a key driver of economic growth and a means of strengthening their geopolitical influence. The rivalry between the two countries extends beyond economic competition, and both countries are investing in their military capabilities to assert their dominance in the region.

In conclusion, the India-China war on manufacturing is an ongoing battle between two economic giants. While China has been dominating the global manufacturing industry for several decades, India is taking steps to catch up and establish itself as a global manufacturing hub. Both countries face several challenges, including the need to improve infrastructure, upskill their workforce, and address regulatory hurdles. The outcome of this war is uncertain, but what is clear is that the winner will be the country that can successfully navigate these challenges and emerge as a dominant player in the global manufacturing industry.

industryeconomybusiness wars

About the Creator


I am a financial expert and author, helping others achieve financial freedom through practical and psychological strategies. I have helped thousands of people improve their financial literacy and reach their goals.

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Excellent work. Looking forward to reading more!

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  • Kamrul Hassan7 months ago

    Excellent work. Looking forward to reading more!

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