China and India have emerged on the global economic landscape as prominent leaders. They have attracted lot of international recognition in the recent decade.
China has authoritarian governance which believes in imposing rules. China’s authoritarian p
olitical system can result in political and social unrest and can blow away all the gains achieved by them in single shot. India has democratic system of governance where people’s voice is respected and given due forum to exercise their rights. India on the other hand has better legal infrastructure though not without its flaws has been largely effective system. China lacks better legal system has seen in their suppression of trade union and labour rights.
China boasts of impressive infrastructure in terms of better roads, airports and trains. China’s impressive infrastructure comes at the cost of aggressive investment strategy. China invests more than half of its GDP in infrastructure development which can be detrimental to the economy in long run. India is working to improve upon its infrastructure but most of its projects are mired in corruption. India needs to build effective mechanism to monitor its investments in infrastructure.
China has good GDP rate at double digits and shows promise of sustaining the same. India on other hand has been struggling to keep up consistent GDP growth. Inspite of not being able to keep up impressive GDP rates, India has open and competitive economy. India fares better in terms of several macroeconomic factors like burgeoning middle class, abundance of raw materials, young population, better monetary control mechanisms and well regulated banking system.
India’s growth has been fuelled by liberalisation policies which have resulted in class of young entrepreneurs who have built several thriving businesses and world class ones too. India’s corporate elite boasts of knowledge and capabilities to take on the global elite. India has rich class of English speaking manpower who drive the IT and BPO companies. India has emerged as world leader in IT and shows signs of sustained growth in years ahead. China has rampant piracy which has resulted in Knowledge based industries shunning them and embracing India which is better equipped.
India’s young population gives good demographic dividends in long run. China on the other side has ageing population which can create huge expenditure towards pension and other health benefits.
India has largest gas hydrate deposits which can make it significant voice in energy production by reducing on carbon footprints.
India has country as better and stronger economy at the grassroots level and is well equipped to march ahead in years to come. India has to improve on several fronts like infrastructure, strengthening existing legal system and bringing down corruption. China appears to be short term bet but in terms of long term growth India offers to prosper. Raghav....prasadyrg@gmail.com
Need to explore more vibrant avenues.
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