By: Azhar Azam
Soaking mature markets, Middle East turmoil, and oil glut that substantially slashed Arab countries spending are some the major factors which enforced developed nations to explore emerging markets. Additionally, they needed an ally around China who could serve their economic, political, and strategic interests. They finally found India!
This is the reason why some of the western countries have almost been forcing the rest of the world to believe that Indian blooming economy is going to tear up China across all economic spheres and India is the country that would replenish the Chinese dominion in coming times.
In an effort to build-up and rationalize their narrative, they manipulated international media and financial institutions and analysts to glorify Indian economy in various economic development reports, future economic outlooks, and financial perspectives. In spite of tactical maneuvers, the truth cannot be prevented to surface.
The fastest growth rate is certainly a nutritious economic indicator but it does not guarantee that India could compete Chinese decades of tireless toils and efforts immediately. No doubt China’s economy has peeled a bit in past few years but still is carting some mountainous figures that India is nowhere close to pose a real threat.
In fact, there is indeed no comparison whatsoever between the two countries except for rare areas. From economic growth to public welfare, resources to development, communications to energy, trade to foreign exchange reserves, and foreign direct investment – home or abroad, China is dominating India exceptionally.
China has incredibly shriveled the number of people living below the poverty line in the last 30-years. Since 2012, the Asian economic giant has lifted people from poverty at an average of 13 million per year. According to the World Bank, 28.7% in India are living below the poverty line as well as 56.7% of Indian people have to survive on $2.90 or less.
In overall social sector, China is not only improving but also overshadowing India on all indicators including maternal mortality rate, infant mortality rate, literacy rate, physicians’ density, hospital bed density, improved sanitation access and unemployment. China created nearly 9.74 million jobs in urban areas in first eight months of the year and reported the lowest unemployment rate since 2012.
In energy sector, China has greatly capitalized on the available resources and now is producing electricity, crude oil, refined petroleum products, and natural gas to an extent, India thoroughly fail to match with.
China is also leading the world in solar energy and its economic investment of an up to 2.5 trillion yuan is expected to produce another about 13 million new jobs by 2020, according to National Energy Administration (NEA).
The huge railways, roadways, waterways, airports, registered aircrafts, and merchant marine networks of China also muscles down India to even dream to compete. And the Chinese Silk Road (OBOR) is going to give China the stout edge not only in the region but also around the globe.
On the basis of these raw economic, social, energy, and infrastructure; even a novice in economic affairs would shortly flush out any Indian chances to catch up China for many decades to follow so a few economic experts’ prophesy that India could compete China is only a blatant lie.
Even if the China’s growth rate remains sluggish to 6.7% or below and India maintains a growth rate of 7.5% or higher for a century – there will yet be such an enormous gap between the two countries’ GDPs due to unprecedented Chinese achievements in the last 30 years.
Moreover, India prevails in a highly corrupt and rotten political and social system as well as the country is facing internal, regional and transnational challenges including Kashmir, Assam, Nagaland, Manipur, Naxalite-Maoist insurgency, and also has volatile relations with two neighboring nuclear armed countries – China and Pakistan.
The Sino-Indo comparison is therefore is utterly deceptive and far from facts. China has established itself in all areas whilst nearly half of Indian population (564 million) lacks the toilet facility and defecates openly – ‘in fields, forests, next to ponds, along highway medians and on the beach’.
Soaking mature markets, Middle East turmoil, and oil glut that substantially slashed Arab countries spending are some the major factors which enforced developed nations to explore emerging markets. Additionally, they needed an ally around China who could serve their economic, political, and strategic interests. They finally found India!
This is the reason why some of the western countries have almost been forcing the rest of the world to believe that Indian blooming economy is going to tear up China across all economic spheres and India is the country that would replenish the Chinese dominion in coming times.
In an effort to build-up and rationalize their narrative, they manipulated international media and financial institutions and analysts to glorify Indian economy in various economic development reports, future economic outlooks, and financial perspectives. In spite of tactical maneuvers, the truth cannot be prevented to surface.
The fastest growth rate is certainly a nutritious economic indicator but it does not guarantee that India could compete Chinese decades of tireless toils and efforts immediately. No doubt China’s economy has peeled a bit in past few years but still is carting some mountainous figures that India is nowhere close to pose a real threat.
In fact, there is indeed no comparison whatsoever between the two countries except for rare areas. From economic growth to public welfare, resources to development, communications to energy, trade to foreign exchange reserves, and foreign direct investment – home or abroad, China is dominating India exceptionally.
Although India posted an impressive GDP growth rate of 7.2% in 2016; to $2.3 trillion yet China’s GDP ($11.2 trillion) is five-times larger than India’s at a lesser growth rate of 6.7%. China’s GDP-per capita ($8123) also predominantly outperforms India’s ($1,709).
China’s exports are whooping eight-times larger than India and it is maintaining a massive trade surplus of $511 billion against India’s trade deficit (-$119 billion). Inflation rate is widely incomparable as well. China’s foreign exchange reserves are nearly eight-times to India whereas inflation in China is also one-third to India.
External debt of China has increased by 8.7% quarter-over-quarter – to 1.56 trillion at the close of June 2017 as a result of short term borrowing while Indian external debt grew 1.3% – to $486 billion at the same time. Foreign direct investment in 2016 nevertheless rose to 1.5 trillion too.
China’s exports are whooping eight-times larger than India and it is maintaining a massive trade surplus of $511 billion against India’s trade deficit (-$119 billion). Inflation rate is widely incomparable as well. China’s foreign exchange reserves are nearly eight-times to India whereas inflation in China is also one-third to India.
External debt of China has increased by 8.7% quarter-over-quarter – to 1.56 trillion at the close of June 2017 as a result of short term borrowing while Indian external debt grew 1.3% – to $486 billion at the same time. Foreign direct investment in 2016 nevertheless rose to 1.5 trillion too.
China has incredibly shriveled the number of people living below the poverty line in the last 30-years. Since 2012, the Asian economic giant has lifted people from poverty at an average of 13 million per year. According to the World Bank, 28.7% in India are living below the poverty line as well as 56.7% of Indian people have to survive on $2.90 or less.
In overall social sector, China is not only improving but also overshadowing India on all indicators including maternal mortality rate, infant mortality rate, literacy rate, physicians’ density, hospital bed density, improved sanitation access and unemployment. China created nearly 9.74 million jobs in urban areas in first eight months of the year and reported the lowest unemployment rate since 2012.
In energy sector, China has greatly capitalized on the available resources and now is producing electricity, crude oil, refined petroleum products, and natural gas to an extent, India thoroughly fail to match with.
China is also leading the world in solar energy and its economic investment of an up to 2.5 trillion yuan is expected to produce another about 13 million new jobs by 2020, according to National Energy Administration (NEA).
The huge railways, roadways, waterways, airports, registered aircrafts, and merchant marine networks of China also muscles down India to even dream to compete. And the Chinese Silk Road (OBOR) is going to give China the stout edge not only in the region but also around the globe.
On the basis of these raw economic, social, energy, and infrastructure; even a novice in economic affairs would shortly flush out any Indian chances to catch up China for many decades to follow so a few economic experts’ prophesy that India could compete China is only a blatant lie.
Even if the China’s growth rate remains sluggish to 6.7% or below and India maintains a growth rate of 7.5% or higher for a century – there will yet be such an enormous gap between the two countries’ GDPs due to unprecedented Chinese achievements in the last 30 years.
Moreover, India prevails in a highly corrupt and rotten political and social system as well as the country is facing internal, regional and transnational challenges including Kashmir, Assam, Nagaland, Manipur, Naxalite-Maoist insurgency, and also has volatile relations with two neighboring nuclear armed countries – China and Pakistan.
The Sino-Indo comparison is therefore is utterly deceptive and far from facts. China has established itself in all areas whilst nearly half of Indian population (564 million) lacks the toilet facility and defecates openly – ‘in fields, forests, next to ponds, along highway medians and on the beach’.
