On the other hand, India is still a rising economic power. As its development model focused on domestic demand and services, India’s growth has been more moderate than China. Nevertheless, it is now the fastest-growing economy in the world and has reached a stage where it is too big to ignore. To add, it is the world’s most populous country with one of the largest percentages of working age population.
Asia remains a high-growth region led by two of its largest emerging economies, China and India. Both countries are expected to contribute about half of global growth in 2023. Singly, either one of these dominant markets offers a range of investment opportunities; but together, their complementary strengths reveal a deeper and wider pool of stock choices.
China is already a major economic powerhouse, having grown at around 9% per year since it began to reform its economy in 1978. Recognising that its high-growth model based on investments, lowcost manufacturing and exports has mostly reached its limits, the government is accelerating the pivot towards domestic consumption and innovation to sustain long-term economic development.
