Tuesday, September 8, 2009

India- China electricity divide

For all of India's efforts and stated claims to 6-9% growth per year, the gap between India and China is getting wider,and at a faster pace.
Col Amarjit Singh (Retd)

Oded Shenkar
At least in the next few years, India is unlikely to grow as fast as China. China leads India in foreign investment, a key contributor to economic growth, by a margin of 10 to 1, because foreign investors, who can place their money anywhere, see more opportunities and less obstacles in China.

Ironically, Indian democracy is viewed as a hindrance vis-a-vis the stability of China's authoritarian regime on its liberalizing market and docile unions. India also lacks a Hong Kong and a Taiwan, next-door technology, and capital hubs that when combined with the mainland's abundant, cheap, and productive human resources create powerful complements. India has a long way to go before it catches up with China.
The debate's first question is, Will India ever grow as rapidly as China? If so, how might that occur?: click me

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