India or China who is going to lead Asia ?
This decade is going to be Asia's nobody doubts that.Question many people have in their minds is is it going to be India or China who is going to lead it.
China seems to be obvious answer lets explore further.
The two neighbours are relatively friendly in history and is not in a race per se and haven't fought many battles face to face ,but a race is not only the one you join its also the one you are pulled into.
So let's explore this topic and see who is going to win it or possibly whose decade is it going to be?
China's GDP as of May 2018 is 13.6 trillion and India is 2.719 trillion dollars.
China achieved fast growth from 1978’s onwards and India opened up its economy only in 1990.
If we look at the growth rates China has more impressive growth rate than India and has an advantage that it opened up earlier and its autocratic leadership with few civilian rights meant changes were imposed without questioning.
India on other hand is a democracy and this has resulted in its slower growth after opening up but hasn't been less impressive growth story either still being in the fastest growing major economy rankings.
In the post corona virus world its becoming increasingly clear that China cannot transition into a major economic power as its hostile leadership and unwillingness to integrate with the rest of the world will cost it dear.
This will in-turn start kicking in as sanctions from the western world and reluctance of countries to accept Chinese will let the economy disintegrate like the Soviet Union.
China will be slowing much faster and adding on to it will be the aging problem, because of the one child policy backfiring.
China will just remain as a factory to the world for some more time but as more and more sanctions kick in China will fade as a domestic economy much like Russia.
India on the other hand being a democracy and holding no hostilities to any country in the world is more likely to be accepted around the world .
India will definitely start benefiting from China’s rout and with its Infrastructure push with Industrial corridors and dedicated freight corridors can keep on increasing its growth rate and
manufacturing.
India also has a huge demographic advantage with 2030 India will be one among the youngest nations in the world with more than half of its population below 30 yrs .
India will be more successful development story in the long run than China but it will not be able to mimic China's growth rates as its not a autocratic leadership and a one party rule .
World will embrace Indian growth model and culture more whole heartedly as it’s not hostile and open to embracing the western culture and share common democratic credentials.


Comments
Post a Comment