We always knew a time would come when the world could tell whether the China model of over zealous, doctrine led growth would prove as a better developing economic model or India’s democratic, slow and steady pace would prove to be a better launch pad into the developed world.
Well, maybe this is the time when economists, analysts and sooth sayers alike need to step in and assess the situation. Today India’s economy is in the doldrums, forex reserves are abysmally low, the Indian rupee is highly depreciated and the current account deficit is highly low. China on the other hand, continues to maintain one of the highest forex reserves in Asia, has maintained trade targets with an appreciated yuan and continues to achieve her projected GDP growth.
When both nations face the same external economic threats and yet see diverging growth numbers, optimism in investment sentiments and influence on foreign relations, its time to assess the growth models and finally conclude which is the better one. While the study can be a never-ending assessment of the two nations, Inchin Closer feels 30 years post economic libralisation is a good barometer from where to take cognizance of our two countries nation building.
While China’s economy did have a headstart of a decade, opening up to the west in the 1980’s, libralising her policies and ushering in foreign investments, India quickly caught up in the 1990’s with her own libralisation policies. For India and China watchers, the two nations have played an interesting game over the past few decades, with various groups commenting on the pros and cons of each nations race towards a more developed country. Below we take you on a journey over the mega differences.