EDITALK

It's the Time of India!
But, with New Hinderances on the Sidelines!

It was not very long ago, that India as a Nation, was generally considered as one of the weaker economies globally, and at times, even looked down upon, by some of the much more affluent economies of the world and pooh-poohed at, in this connection, to a very great extent. In other words, as a country, it was most of times dismissed or rejected, as not worth being seriously considered, because by all world standards, it was still an economically poor country. However, much to the world's absolute amazement and surprise, the last decade or so, most economically affluent nations across the world, have been left astonished and as much as bewildered and even perplexed at India's galloping growth trajectory, which was so steadily but surely, being constantly demonstrated by the nation, in any field that one looked at, whatever or whichever it be. The country as a whole, has very ably and with dedication and determination, steered itself, through a complete and remarkable transformation and change for the better, from what it used to be and how the world looked at it, in those past years. In fact, it would not be entirely incorrect on our part, if we say, that this wholly unexpected transformation, has had many world leaders wonder and mull over, as to how India managed to bring about such a dramatic turnaround! As a matter of fact, only a year ago, our esteemed Finance Minister, Mrs. Nirmala Sitharaman, when reading out the Union Budget for FY 2024-2025 on February 01, 2024 had said, “We envision a prosperous and inclusive India, in which the fruits of development reach all regions and citizens, especially our youth, women, farmers, OBCs, Scheduled Castes and Scheduled Tribes.” She highlighted the Ruling Government's vision for Amrit Kaal in India, making the country an empowered economy. Stating that, “Our vision for the Amrit Kaal to follow, includes a technology-driven and knowledge-based economy with strong public finances, as well as a robust financial sector," she shared the economic agenda for achieving this vision, which would primarily focus on three priorities, these being: • facilitating ample opportunities for citizens, especially the youth, to fulfil their aspirations, • providing strong impetus to growth and job creation; and last but not least, • strengthening the country's macro-economic stability. So, it's definitely the Samay of Bharat (India's Time). Today, when we talk about Superpowers, the first ones that come to our minds are America, the European Union and China. But, here's another country in the world that's moving very fast towards becoming a global Superpower - India, the fastest growing major economy in the world. India is already considered a potential Superpower due to its economic growth, population and rapidly expanding military. In 1947 when India gained independence from British rule, it was amongst the poorest countries in the world. Even in 1991, its economy was smaller than thatof France and Britain. But today with a GDP standing at $4.150 trillion USD, it's more than that of France at 3.1 trillion USD and Britain at 3.5 trillion USD. In 2014, our economy ranked 10th in the world, but today, India has already become the 5th largest economy in the world with a massive economy of 4.150 trillion USD. In less than 10 years, the country has overtaken 5 major economies of the world - Canada, Russia, Italy, France and Britain. It is now the fastest growing major economy in the world with an average GDP growth rate of 6.5% to 7%. The country is well poised and very much on its way to soon becoming the world's 3rd largest economy, surpassing both Japan and Germany by 2027. Factors such as Economic Boom, Demographic Favour and Construction coupled with Infrastructure Boom, have helped India catapult forward at great speed. Now, even if we look for instance, at our own industry - the Horological Industry, while most countries across the world went through a rather lacklustre and lean period last year and their businesses did not fare as well as most did in the earlier immediate post pandemic period, mainly due to the slowdown in China, India on the other hand, did rather well for itself. Most companies big, medium and small did well and in fact grew their businesses as compared to the previous year. They not only continued to launch new and technologically advanced time-telling creations, but they also kept increasing their footprint across India, by adding new showrooms not just in the metro towns, but also in the Tier 2 & 3 cities, in different geographies of the country. Indian Companies such as Titan, Maxima, Designer and Logues in the Watch manufacturing segment, Companies in the watch retail segment and Global companies also based in India such as Timex, the Fossil Group, Casio, Seiko etc., have all done extremely well for themselves. This is a fact, which was also corroborated during the Samaya Bharati 2025 Inauguration Ceremonies, not just by the Distinguished Special Guest Ms. Smriti Irani and Distinguished Guest of Honour Mr. Praveen Khandelwal, the Heads of Titan Company, Fossil India Group and Seiko, but also by many of the Achievers at the Movers of Time Awards 2025. They all said, in one loud and clear statement, that this is India's Time and opportunities to grow for the Indian Horological Industry and Trade are huge and only waiting to be tapped in the correct time frame, which is the immediate future. However, having said this, the Indian Horological Industry has to also understand and be aware of some threats that exist on the sidelines. which are about how China is quietly attempting to slow down India's manufacturing might and growth. The Far East Asian country is in fact in the process of quietly tailoring its global investment strategy to slow or even stall India's rise as a manufacturing rival. As companies move supply chains out of China, Beijing is channelling outbound investment to select countries, while deliberately steering it away from India. It's also no secret that China's inbound foreign direct investment (FDI) has collapsed by 99% since 2021. Yet, rather than pulling back globally, Chinese companies are going outward, trying to reshape global production networks. Meanwhile, India too, is facing unexpected headwinds in its bid to replace China, as the world's manufacturing factory and hub. The numbers reveal a clear story. Data from Rhodium Group shows that China's inbound FDI fell to $4.5 billion in 2024, its lowest in more than three decades. But, on the flip side, Chinese outbound FDI is taking off in an entirely new direction. Once focused on acquiring assets in the US, Japan and Europe, Chinese capital is now flowing into greenfield projects, such as factories, battery plants and industrila parks, in countries like Hungary, Mexico, Morocco & Brazil. In Europe, Hungary has become China's favourite destination receiving a$7 billion investment from battery giant CATL and a new BYD EV factory. Morocco too, has emerged alongside, as a surprising hub for Chinese EV supply chains, leveraging its trade deals with both the US and the EU. Hence, China's strategy has much more to it than just economic. It's using what some analysts call "industrial diplomacy," selectively rewarding nations with FDO based on geopolitical alignment. Beijing's strategy shifts dramatically, when it comes to India. Despite our population overtaking that of China and the Indian economy growing at 6.5% last year, Chinese firms are holding back. Behind the scenes, Beijing has discouraged companies like BYD and Foxconn from expanding further in India, fearing that this could accelerate India's climb, up the value chain. Its export controls have quietly restricted key industrial inputs such as solar equipment, EV components and electronics machinery bound for India. The motive and intention appears clear - which is, to prevent India from repeating China's own 1990a success story. There are some other local factors too, initiated by the Indian bureaucracy knowingly or unknowingly, which in some ways, are also contributing in this strategy change affected by China, especially for India. Therefore, even though Yes!, it's India's Time no doubt, but Indian Manufacturers too, have to now start thinking and planning Out-of- the-Box, and seize the opportunities that are available, to ensure that not just our Industry, but the entire Nation continues to march forward towards growth and a healthy future. The global situation too, with the ongoing wars between Israel - Gaza and Russia - Ukraine, has already caused enough geo- political uncertainty, besides the more recent tariff wars on import and export duties happening between the US, India as well as other World Nations, that have come in post Donald Trump taking over as the President of the United States of America, not knowing which way these tariffs are headed. India, in a very short period of less than a decade, brought itself back remarkably on its tracks, through a painstaking effort, and now moving forward in FasTrack Mode. Let's all together, as an Industry, thus resolve and pledge to ensure, that our own Success Story Continues unhindered and that it doesn't Derail - in the direction of attaining a Glorious and 'Viksit Bharat' (Developed India) by 2047 - the Dream Vision and Mission of our Prime Minister Narendra Damodar Modi and the Country's Government. So, Let's Do It!!

Hemal M. Kharod