India vs. China Economy: Key Differences for Investors

Yanko Hristov, Head of Institutional Sales and Business Development at Alaric Securities on “Business Start”

The global debate on the India vs. China economy intensified in 2025. China built strength through manufacturing and exports. India, however, follows a different path.

According to Yanko Hristov of Alaric Securities, India cannot be called “the next China.” Instead, it offers unique investment opportunities in technology, finance, and retail markets.

Why India’s Stock Market Stands Out

At Money Expo India 2025, Hristov praised the financial literacy of Indian investors. He highlighted upcoming regulatory reforms aimed at reducing volatility. These reforms will make the markets more attractive for local and global participants.

India’s exchanges also outpace many global peers. Over 5,500 companies list in India, compared to 1,800 in London. Once companies reach a revenue threshold, they must go public. This rule channels capital into growing enterprises and strengthens the market.

This perspective aligns with insights shared by Anton Panayotov, Vice-Chairman of the Bulgarian Business Leaders Forum and CEO of Alaric Securities. In a recent interview, he observed that India mirrors China 20 years ago, driving Europe and the U.S. to strengthen ties with the country. His view underscores India’s rising global role while highlighting its different trajectory in the India vs. China economy debate.

Options Trading and Retail Investors Drive Growth

Investor behavior also sets India apart. In 2023, options trading surpassed stock trading in popularity. Contracts reached $83 billion, compared to $11 billion in the U.S.

Retail investors drive this surge. Their activity continues to hit record highs. Hristov noted that India’s government prioritizes the domestic market, which further empowers local traders.

Structural Challenges Holding India Back

India’s progress faces obstacles. The country remains less open to foreign direct investment. Global investor confidence has also declined due to Donald Trump’s tariffs.

Another challenge is manufacturing. Unlike China, India lacks a strong industrial base. Instead, its growth relies on technology and financial services, two rapidly expanding sectors.

Best Sectors to Invest in India vs. China

China dominates manufacturing and exports. India, however, shines in other fields. For those comparing the India vs. China economy, the top Indian opportunities lie in:

• Technology – powered by IT services and fintech innovation.

• Financial Services – boosted by reforms and rising demand for capital markets.

“For now, Indian companies pay little attention to their global image,” Hristov said. “But that may change soon.”

India Is Not the Next China and That’s a Strength

The India vs. China economy debate shows two very different stories. China thrives on manufacturing. India grows through consumption, fintech, and retail-driven markets.

Investors should not expect India to mirror China. Instead, they should see India as a country offering a sea of opportunities in technology and finance.

Watch the full interview in the video.

Source: BloombergTV Bulgaria

This material is not an investment recommendation.