ASIA’S NEW ECONOMIC POWERHOUSE: INDIA’S RISE AND ITS IMPLICATIONS FOR CHINA’S

ASIA’S NEW ECONOMIC POWERHOUSE: INDIA’S RISE

Abstract

In the last twenty years, India has gone through a transformation phase of being an economic backwater to being a threat to the long period of supremacy of China in Asia. Basically, the research in this paper seeks to examine the structural processes of India's growth, such as liberal economic reforms, digital innovation, youthful population, and active trade policy and their effects on regional power relations. Using a comparative prism, it explains how the Make in India and Digital India initiatives of India are aimed at destabilising the Chinese domination in manufacturing and technology. The case studies of the manufacturing industry, digital economy and trade flows show that there are both opportunities and strategic frictions that define the India-China relationship. The discussion on the reformulated role of multilateral organisations such as BRICS, WTO, and the Quad in the mediation and cooperation of tensions is also discussed in the paper. It suggests that it will be up to the ability of both India and China to strike a balance between competition and cooperation in the future to become stable. The results show that it will be necessary to balance such a changing economic competition through delicate trade measures and industry-oriented approaches, and communication between countries.