Can India overtake China is coming years?

Re: Can India overtake China is coming years?

DID India grow faster than China last year without anyone so much as noticing? Many pundits, including this newspaper, have speculated about when India’s growth might outpace China’s.

China grew by 10.3% last year. But today a colleague pointed me to the IMF’s latest World Economic Outlook (Table 1.1), released earlier this week. It says that India grew by 10.4% in 2010. How can that be?

India has two idiosyncrasies in the way it reports its GDP figures. First, it reports growth for the fiscal year, not the calendar year. So the 8.6% estimate refers to the 12 months ending on March 31. That in itself makes little difference. But the second idiosyncrasy is more important. India typically reports its GDP “at factor cost”. That means it adds up all the income earned in the course of producing the country’s goods and services. Other countries, including China, typically report their GDP “by expenditure”, adding up all the spending on domestically produced goodies. Since every purchase is a sale, expenditure should equate to income: every rupee spent by one person is a rupee earned by someone else. But a couple of things get in the way: taxes and subsidies.

http://www.economist.com/blogs/freeexchange/2011/04/india_outpaces_china

Re: Can India overtake China is coming years?

In my visits over the next 25 years, Kolkata — and much of India — seemed little changed. China, where the national bird was jokingly said to be the crane, would be transformed every year or two, while Kolkata was always the same: a decrepit city where barefoot men pulled rickshaws beside fetid canals.

That’s why India has been a bit of an embarrassment for those of us who believe in democracy, especially when compared with China. The Communist Party in China did a much better job fighting poverty than democratically elected Indian governments. India tolerated dissent, but it also tolerated inefficiency, disease and illiteracy.

But after my trips to India and China this year, I think all that may be changing. Despite the global economic slowdown, India’s economy is now hurtling along at more than 8 percent per year. Yep, India is now a “tiger economy.”

The technology zones around Bangalore in southern India have been booming for years, but what is changing is that the rise is gaining traction across the country — even here in Kolkata. It’s stunning to see the new high-rise towers in Kolkata, new air-conditioned shopping malls, new infrastructure projects, new businesses.

In elections this month, the longtime Communist Party government here in the state of West Bengal was ousted, and the new chief minister is a woman and a dynamo, Mamata Banerjee. After the latest elections, she’s part of a broader trend of charismatic female politicians: one-third of India’s people are now ruled by chief ministers who are women.

The northern state of Bihar used to be even more of an embarrassment. For many years, gangsters played a major role in government there, and nothing worked. I once visited a health clinic in Bihar where employees dumped medicines in a pit in the ground, so they wouldn’t have to dispense them. I visited a school in Bihar where teachers never bothered to show up. I visited villages where gangsters raped, robbed and ruled at their pleasure. Businesses fled, kidnapping became rampant, and Bihar seemed hopeless.
Yet Bihar has, wondrously, turned around since 2005, when a reformer named Nitish Kumar took over as chief minister. There are still enormous inefficiencies, but crime has been suppressed, corruption has diminished, and the local economy is booming at double-digit rates. And if Bihar can turn around, any Indian region can.

Look, India still lags far behind China, it faces risks of Pakistani extremism, it needs further economic reforms, and it too readily accepts inefficiency as the natural order of the universe. India’s education and health system is a disgrace, especially in rural areas; Bangladesh does a much better job, despite being poorer. But change is in the air in India. Infant mortality is dropping, voters are pushing for better governance, and I think India has three advantages over China in their economic rivalry in the coming decades.

First, India’s independent news media and grass-roots civic organizations — sectors that barely exist in China — are becoming watchdogs against corruption and inefficiency. My hunch is that kleptocracy reached its apogee and is now waning in India, while in China it continues to get worse. I’ve written scathingly about India’s human trafficking and oppression of women, but it’s also true that civil society is addressing these issues.

Second, China’s economy may be slowed by the aging of its population, while India’s younger population will lead to a “demographic dividend” in coming decades. (Indian overpopulation is still a problem, but the average woman now has 2.6 children, and the figure is dropping.) Likewise, China already reaped the economic advantages of empowering its women, while India is just beginning to usher the female half of its population into the formal labor force.

Third, India has managed religious and ethnic tensions pretty well, aside from the disgraceful anti-Muslim pogroms in Gujarat in 2002. The Sikh challenge in the Punjab has dissipated. Muslims have been president of India three times, and are prominent in business and the movie industry; perhaps as a result, India has the world’s third-largest Muslim population (after Indonesia and Pakistan) but few jihadis. And while India has sometimes behaved brutally in Kashmir, civil society watchdogs are pressing for better behavior there. In China, by contrast, tensions with ethnic Tibetans and Uighurs are worsening.

http://www.nytimes.com/2011/05/29/opinion/29kristof.html?_r=1

China’s autocrats are extraordinarily competent, in a way that India’s democrats are not. But traveling in India these days is a heartening experience: my hunch is that the world’s largest democracy increasingly will be a source not of embarrassment but of pride.

Re: Can India overtake China is coming years?

Well I am very sure that the way India is going, it will overtake China in about 1000 years and become the leading economy of the world.

Re: Can India overtake China is coming years?

Well i don't think so, India can overtake China in next 100 years.

Re: Can India overtake China is coming years?

India needs to be a manufacturing powerhouse like China. Heavily reliant on services, India must shift economic gears toward manufacturing if it is to maintain near-double digit growth and, more importantly, absorb the more than ten million people set to join the workforce annually in the coming years. India boasts a vibrant corporate sector, a huge domestic market, and a favorable demographic outlook that, with better training, education and government policies, could turn it into a global force in manufacturing.

India, only spends just 3 percent of GDP on education, must ratchet up the skill levels of its workers if it is to take full advantage of the "demographic dividend" of a surge in its working age population.

Most Indians who work do so in the informal sector and have little or no training. Literacy has risen sharply but among the 74 percent who can read, just 2.2 percent have technical or vocational training

Re: Can India overtake China is coming years?

800 million people in poverty and you are tiger ??? come back to reality a few elite have the money and making the money rest of country is in disaster.

Re: Can India overtake China is coming years?

China is rapidly putting their foot prints all across South East Asia as well. They are helping to build East Timor as well. They have built presidential palace, foreign ministry buildings, roads as well sea port. And matching India to these kind of developments?..it would be day dreaming definitely. China in fact is way ahead of the game.

Re: Can India overtake China is coming years?

No harm in trying to match China. Healthy competition is good. The Chinese I have come across are very hard working and sincere. So I have no problems coming 2nd to them.

The super wealthy in Inda do not do much for the masses - and field is far from level. All abaord the prosperity express.

Re: Can India overtake China is coming years?

It is very confusing, one hand, Indians are saying that economy of India is growing and is competing China and things like these and on the other hand, I have seen very small % of expat Indians moving back to India ( and most of them not for economic reasons) and huge chunks are waiting or trying to get out of Shining India????

So what to believe? the facts govt presents telling everyone how Good Economy has been or the fact that Indians are running out of India as if there is a wild-fire there???

Re: Can India overtake China is coming years?

Not quite sure what conclusion you are trying to draw from that little nugget of information :)

What you have said about India holds true for Chinese as well. Very small % of expats moving back and huge chunks waiting to come out. Take a look at the employment based Green Card stats in the US, and the top two countries are India & China ;)

Re: Can India overtake China is coming years?

People coming to US is credit to the nice system US has. Even folks with money from India/China come here for the experience - university, industry etc.

It cannot be denied there has been progress. But of course much more needs to be done for the poor.

Re: Can India overtake China is coming years?

Here is the gist of Indian economy, per Indian govt figures if you make more than 12 rupees a day you are above the poverty line.

In last 10 years

Surge of immigrants from India baffles border officials in Texas

Re: Can India overtake China is coming years?

now you have made me more confused, as per my information ( correct me if i am wrong) the stable economic growth is founded on the bold part in your quote... if it is not, then it is called economic bubble, as it cannot be sustained for longer period....

Re: Can India overtake China is coming years?

this is one, i was surprised to learn that Indians would do anything or pay any amount to be in Middle East, where for sure they are not going to get more than USD 250 dollars a month and to my surprise they are happy with the amount… now that is red-flag for the country telling others how amazing it is, or may that is why they are telling other how Amazing and Incredible India is…

Re: Can India overtake China is coming years?

In my opinion India will not/cannot overtake China in the coming years due to India's political system. There are political parties pulling from all directions with the net result that very little actual progress is made. China on the other hand has an autocratic government which despite all its negatives is capable of taking strong decisions that help the country.

That being said, India is still positioned to be the second largest economy in the world. Thats some progress for a country thats just 65 years old :)

Re: Can India overtake China is coming years?

You heard the term "on paper" or "paper tiger" :)

Re: Can India overtake China is coming years?

You are talking about China , India will take over , yes take over, not overtake USA in coming years. India will replace US troops in Iraq and Afghanistan. Pakistan will be dependent on dole out from India. India’s Ahimsa will be adopted by all the nations of the world and we will all live happily ever after. :@:
If India can overtake China , because of population advantage , why can’t India take over USA which is 1/5th of India’s size population wise. :silly:

Re: Can India overtake China is coming years?

but they are trying that, by getting into USA by any mean..

Re: Can India overtake China is coming years?

"Originally Posted by Southiehttp://www.paklinks.com/gs/images/buttons/viewpost-right.pngPeople coming to US is credit to the nice system US has. Even folks with money from India/China come here for the experience - university, industry etc.

It cannot be denied there has been progress. But of course much more needs to be done for the poor"
We are doing a good job of confusing each other :slight_smile:
The bold part in my quote refers to the US system’s positives. Indians come here to benefit from the excellent US system of education, industry etc. I was providing a reaspn why Indians (and Chinese) gravitate to US - even if some of them may have enough money at home.

Of course, majority of Indians are stil belowo poverty line. I dont have stats - but I suspect the trend is that this percent is decreasing.

Re: Can India overtake China is coming years?

the point is, as the thread title says, can indian economy take over China, it is not about the point that yes there are some areas to cover…
letts ee, as you have mentioned in one of your replies, 1) System 2) University 3) Industry
these three are the foundation stone for any economy to grow and for the analyst to predict the growth in next 20 odd years… do we see “Nice” system in place where anyone having ability can grow??? or atleast if such kind of system in the process to being implemented?

2ndly, the education standards, and we do not need to know that the Asian education have got some of the lowest standards in the world, the kind of education provided may produce somebody who can read and write but certainly not someone who can think..

3rd, this is the corner stone, the frist two provide the infrastructure for this, Industry is driven by researh and development which comes from the above two… what is there Indian Industry is producing for the world, even the shampoo and soap used is from Lever Brothers or from P&G or some other international brand, the local brand either consumed by the very low income locals or exported forthe use of some Indians staying abroad…( it was just an example), in short there is nothing or very few items India produces which are essential for global consumption…

the whole point is, with lack of these basis, where do you go??? are you living in Economic Bubble where Emirate of UAE, Dubai used to live in ???