Is India the next China?
Amid all the uncertainties, it is not impossible that India could become the next China, or that China could become the next India.
In many aspects, India too is also moving towards becoming a state-owned enterprise like China. The current situation, while not bad, is pretty bad. It is not yet the right time to give a thumbs up to Narendra Modi’s economic policies. However, if things move along as per expectations, India might just make it in the Chinese league by the end of his term of five years.
Indians should not be disheartened,
as Modi has introduced a series of good measures that could usher in a new era of economic transformation. It’s a little too early to give India a thumbs up, but things are moving in the right direction. In five years, the situation might become very different.
As many as 59 million jobs were created between 2004 and 2014, but 36 million people lost jobs, rendering it difficult to discuss any substantial unemployment scenario in India without considering unemployment generated by the recent demonetisation. For the labour force, demonetisation comes as a boon to enable formal financial transactions. Overall, demonetisation will produce direct and indirect benefits to all economic agents. It is clear, in all the consequent debates and discussions, that job losses will come to a bare minimum, and job losses arising from the current round of cash-based transactions are also likely to be lower than in previous episodes. The CII report claims, demonetisation is expected to add only 1.1% to India’s GDP by 2019.
Things look pretty good in India’s economic scenario, but not too good either, unlike in China.
The reason why India could become the next China lies in its education, which is behind China in terms of overall development.
For example, while the Chinese government has been focusing on upgrading the education system, Indians are still just worried about getting admission to top colleges. This is not the way to go, as China, while moving ahead in terms of education, has a lot more work to do in terms of personal development.
China’s GDP growth has consistently grown over the past ten years. It is the good news for all Indians,
irrespective of their education level. China is the most populous country in the world, with a population of 1.36 billion.
This makes China India’s biggest economic rival.
It’s been proven that education leads to better living standards, with education boosting personal, social and professional opportunities. People who have better education experience more social opportunities. Therefore, it makes sense for an Indian to become a part of the economy which is moving towards becoming a state-owned enterprise.
Want to know what China’s GDP growth looks like in the last ten years?
(Know more about China’s economy? Find out this report from Shanghai Daily)
India has just emerged as the world’s fastest growing major economy. If China manages to become the world’s biggest economy in the coming years, then the next step will be for India to become the world’s second largest economy. The next ten years are going to be the decisive time for India.
China is already close to becoming the world’s largest economy, and its GDP growth has just reached 6.9 percent for a second consecutive quarter, the longest uninterrupted streak of growth in nearly three decades. In contrast, India’s GDP growth has stagnated at around 5.6 percent for six consecutive quarters.
Things are changing rapidly in China. The future looks bright for all Chinese people. But is the same for India’s people.
China’s growth prospects are much brighter, and its GDP growth has been at an average of 8.3 percent for the past ten years.
A 10% annual GDP growth rate for an economy with a large working population comes as a huge challenge. China has demonstrated extraordinary efforts in the last ten years, and it seems, there is not much that India has left in order to achieve this goal.
China’s GDP growth looks a lot like India’s growth prospects in the coming years.
China’s GDP growth looks like India’s growth prospects in the coming years, but are the two situations really equal?
A look at China’s GDP growth looks a lot like a look at India’s GDP growth in the coming years. But a look at China’s GDP growth looks like an opportunity for India.