Are we just 10 years behind china?


I found these statistics about chinese and Indian Economy, and it makes an interesting reading. These numbers suggest that we were neck to neck with Chinese about 20 years ago and today we are about 10 years behind with Chinese. If china continues to grow the way it has in last 10 years, and we don’t do some serious catching up, we will probably loose out.

But, our leaders seem to be too busy running up scams after scams, while helping their industrialist masters. We need to have single minded focus on improving our export performance  – we seriously lag behind on this even in comparison to 1990 china! We need to build infrastructure to allow such exports. We need to have easier norms of labor to create large manufacturing factories. Today’s laws and rules are primed for delays and inefficiency and higher cost. For all this – We need to reform our governance to allow for rapid build up of infrastructure and business.  It doesn’t seem we can grow to the size of China with an American model of consumption led economy – We are too large a nation for that.

So, it all boils down to change the way we do things. Retrain our bureaucracy and retrench the deadwood within the govt. to make rapid growth in country’s revenues and thus standard of living possible.

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FDI inflow (at current prices)

1990 2000 2009
China $3.5 bn $38.4 bn $78.2 bn
India $236.7 mn $3.6 bn $34.6 bn

Net exports of goods and services as percentage of GDP

1990 2000 2009
China 3 11 5
India -2 4 -5

GDP (at current prices)

1990 2000 2009
China $356.9 bn $1.20 trillion $4.98 trillion
India $317.5 bn $460.2 bn $1.31 trillion

Annual GDP growth (%)

1990 2000 2009
China 3.8 8.4 9.1
India 5.5 4 7.7

GDP per capita (at current prices)

1990 2000 2009
China $314 $949 $3,744
India $374 $453 $1,134

Gross domestic investment as percentage of GDP

1990 2000 2009
China 40 35 45
India 22 24 35

Demographic Dividend


Been quite busy on personal front due to attention needed by family… Did some general browsing after a while and found this nice blog about Indian Economy…

http://indianeconomy.org/2006/10/21/demographic-cognitive-dissonance/

I personally find it disconcerting when people keep singing about how India will be a super power. While I see how India would have better standard of living in coming decades, i fail to see how it can be any kind of super power in our lifetime.