NEW DELHI: India’s rupee may gain some short-term stability, but strengthening the manufacturing sector will be crucial for ensuring its long-term resilience, China’s Global Times has said. The report highlighted India’s 7.8% GDP growth in the April-June quarter and argued that the country needs to expand its ability to earn foreign exchange while sustaining the economic momentum.
The Chinese publication suggested that India could benefit from China’s extensive manufacturing experience in sectors such as electronics, electric vehicles and automobile components. According to the report, greater Chinese manufacturing investment could strengthen supply chains, develop local suppliers and improve India’s export competitiveness, potentially helping the country improve its external economic balance.
The report also argued that increased foreign capital inflows could provide short-term support to the foreign-exchange market and ease pressure on the rupee. Over the longer term, stronger domestic manufacturing and higher exports could generate additional foreign-exchange earnings, providing a more sustainable foundation for currency stability.
Global Times further noted that India has been easing some trade and investment restrictions involving China and suggested that faster progress could boost industrial capacity.
The publication maintained that while foreign investment may offer immediate support to the rupee, the currency’s lasting strength would ultimately depend on a stronger manufacturing base, higher exports and a more resilient economy.
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