From economic growth prints to the shift in supply chain, two Asian heavyweights - India and China - have divergent tales to narrate; one cheering a rise and another striving to arrest the fall.

Amid a trade war with the US and other factors, China, claimed to be world's factory floor, is increasingly losing exports and seeing a dip in production of various items ranging from wines to iPhones. Meanwhile, India's economy has made a strong recovery from the challenges caused by Covid-19, despite ongoing global economic difficulties. On the contrary, China's economic growth is expected to ease amid many challenges, including troubles in its once-booming real estate sector; prompting many investors to drive away their bets to India.

The property sector crisis of China is a huge load on its economy and is looking for a rescue. China's main problem revolves around the collapse of its property market. Many prominent developers in China have struggled to complete their projects and are burdened with an enormous amount of debt that they are finding increasingly difficult to repay or refinance.

China's property crisis is in tandem with the rise and struggles of China Evergrande and Country Garden, two of the largest developers in China, which amassed a collective debt burden of around $500 billion and are under severe stress now.

So, here is another area where India is looking cement some gains while China stays on the losing side. In what may make Adani and Birla happy is a forecast that India's demand for cement, crucial for property development, will see steady growth, while the same might stay low in China in 2024 due to troubles in the property sector.

To be sure though, profit margins of cement producers in China could stabilise, while the quicker increase in production capacity might restrict the improvement of profit margins in India, Fitch said in a note.

Divergent cement demand in India & China

Fitch expects China will continue to see less demand for cement because the problems in the property market will continue, and the building of new infrastructure will not happen as quickly. The investment in properties is expected to stay low because developers are still struggling to sell properties and have limited money available, it added.

"Stress in the property market has also adversely affected local governments’ financing conditions amid sliding land sales, which will constrain their ability to boost spending on infrastructure projects," Fitch said.

(With inputs from agencies)