If one were to Google a comparison of Indian and Chinese Economy with a search term"india and china economic comparison",it would end up in 30,900,000 results.
Everyone seems to have fallen in love with this comparison between the two Asian Giants.
Looking at official chinese dailies,I came across one such article to seemed to be of Great personal Interest to me.The article titled "The economic gap between China and India"predicts the Indian Economy surpassing that of China in the near future.The reason the article suggests is that India's businesses and firms heavily rest on Innovation and that while Chinese economic growth is majorly Government Backed,The story of India's economic success is more about the success of small and medium sized private Enterprises and the
"Low cost,high Innovation"principle that they apply.
The article also talks about the success of India's IT and Knowledge revolution and gives Indian Institutions like Indian Institute of Technology and Indian Home Grown talent as the major fuel for what is sustaining India's Economic Growth.
One could however easily Question if Innovation could be the one key masterstroke that would one day take us ahead of the Dragon.The answer I believe,lies primarily in how we approach the puzzle.When comparing two big economies as large as China and India,It would be rather inappropriate to base calculations on just a few factors.
The bigger Question One need to ask is "How India answers its own Economic Issues,one major being High Fiscal Deficit primarily caused by Subsidies."A recently submitted report by the Kelkar commitee has reasoned that Indian Government needs to reduce its expenditure on Subsidies which now account for as high as 2.6% of the GDP so that we do not face an 1991 like crisis again.
Based on the article :The economic gap between China and India and Kelkar committee reports
Written by Anupam Dubey
