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Doklam or not, China remains a shining example for India
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Doklam or not, China remains a shining example for India
ECONOMICTIMES.COM
Aug 29, 2017, 01.23 PM IST
http://economictimes.indiatimes.com/news/economy/indicators/doklam-or-not-china-remains-a-shining-example-for-india/articleshow/60270686.cms
Call it neighbour’s envy or historical similarities, India likes to compare itself with China in all respects. China’s rapid rise to a global power from an economy smaller than India’s just a few decades ago fires Indian imagination: If China can, why can’t India?
The Niti Aayog report cites China’s success in various sectors and suggests India too can emulate it. For example, in the trade and industry section, it says, “Productivity as measured by value added per worker in manufacturing in China is estimated to be nearly three times that in India. Correspondingly, average manufacturing wages in China are three times that in india.”
The Niti Aayog report cites China’s success in various sectors and suggests India too can emulate it. For example, in the trade and industry section, it says, “Productivity as measured by value added per worker in manufacturing in China is estimated to be nearly three times that in India. Correspondingly, average manufacturing wages in China are three times that in india.”
This is just one of dozens of such comparisons. It says India must replicate the Chinese strategy by developing two Coastal Employment Zones, one on the east coast and the other on the west coast. It cites Chinese city Shenzen as the most dramatic example of urbanisation.
“Until as recently as 1980, the region consisted of a group of fishing villages. But thanks to rapid growth of services and industry, today, it is among the most urbanised spots on the face of earth,” the report says in the section on urbanisation.
There is hardly any economic aspect in which the report does not draw a comparison with China or offer it as an example to follow.
There is hardly any economic aspect in which the report does not draw a comparison with China or offer it as an example to follow.
But all that is not without sound reason. India and China are similar economies due to several factors such as large population. Today, India finds itself where China was 10 years ago when foreign investment was ramping up its manufacturing. India may have a lot to learn from China because both the economies have a lot of similarities.
China started opening its economy under Deng Xiaoping in early eighties, 10 years before India took to that path under PV Narsimha Rao. China’s economic growth trajectory is similar to that of India in many ways and India will find no harm in emulating China.
But India is far behind China. It’s trade deficit with China rose to $46.56 billion last year. China's exports to India totaled $58.33 billion, registering a meager increase of 0.2% compared to $58.25 billion in 2015. India's exports to China dropped 12% from 2015 to $11.76 billion. India exports less to China (mainly raw materials) and imports more (mainly electronics and other manufactured goods which are in high demand).
China started opening its economy under Deng Xiaoping in early eighties, 10 years before India took to that path under PV Narsimha Rao. China’s economic growth trajectory is similar to that of India in many ways and India will find no harm in emulating China.
But India is far behind China. It’s trade deficit with China rose to $46.56 billion last year. China's exports to India totaled $58.33 billion, registering a meager increase of 0.2% compared to $58.25 billion in 2015. India's exports to China dropped 12% from 2015 to $11.76 billion. India exports less to China (mainly raw materials) and imports more (mainly electronics and other manufactured goods which are in high demand).
It is not just Niti Aayog that likes to compare India with China. The world lobs them together on many issues. The phrase 'Chindia' gained currency nearly 10 years ago when the world began seeing two Asian countries as engines of global growth.
Economists commonly describe the two countries as rivals, calling them elephant versus dragon or tiger versus dragon.
