The World Bank, which has predicted that it will not take long for China to become the world's number one economic power, indicates that China is heading towards a severe economic crisis. The World Bank also points out that China's slowdown may affect the economic growth of East Asian countries. At the same time, the economic experts of the World Bank also testify that economic growth is fast in some other East Asian countries except China.

The fact that the Indian economy is gaining strength while the Chinese economy is weakening is an active discussion in the world economic circles today. The basis for these discussions is the level of foreign investment coming to both countries.

China's $19 trillion economy is experiencing a rapid slowdown in growth due to some fundamental domestic problems. One of the main reasons for this is China's shrinking population and its aging population.

An economy with a shrinking population cannot sustain long-term growth of more than three percent. China is also facing serious problems in the real estate sector. The construction sector used to contribute thirty percent of the GDP. Now it has decreased by 20 percent. The scene began to face decline with the collapse of Evergrande, China's largest real estate company. Later, 15 to 20 percent of the real estate companies were in debt. This has resulted in massive unemployment among the youth. The unemployment rate in China is as high as 20 percent. It is observed that the unnecessary regulations and imposition policies implemented by President Xi Jinping have shaken the foundations of private sector real estate companies.

China's energy sector is also facing a major crisis. China, the world's largest fuel consumer, accounts for 60 percent of its electricity generation from coal. A decline in coal production is slowing energy production and thus economic growth.

By 2021, countries have started to recover from the ravages of Covid, but it is estimated that China, the centre of the disease, is still not completely free. The nation is still haunted by the shutdowns and fallout from the Covid-19 era.

China has been trying to move away from investment-led growth to consumption-led growth, but the move has yet to succeed. Along with the GDP, the stock index is low in China. The Shanghai stock index is now at its lowest level since March 2007. A decade ago, China contributed 40 percent of global economic growth. This weakening of China will create adverse conditions in the global economy and stock markets.

As developed nations begin to adopt a Chinese plus-one policy, other nations will benefit and cut China out of supply chains. Economists believe that this situation will turn out to be good for India. When the developed countries beat China, the opportunity will naturally be for India. As foreign investments increase, India's GDP will continue to grow in the coming years. It is also likely to remain above seven percent. India was only the 10th largest economy in the world in 2013 and is now in the 5th position. The global financial scene estimates it will reach the third position in 2027-28.

Dr. V K Vijaykumar, a financial expert, says that India will achieve a wealth accumulation of 8 trillion dollars by 2023 through the stock market. In the next ten years, it will reach the pinnacle of economic prosperity in the Indian financial system.The world is witnessing the crumbling of China's valueless pragmatism that whether the cat is black or white, catch the mouse.

(Writer is former President of FOKANA and Chairman of NAMAM (USA))