India could compete with China by using an appropriate economic growth model

By Hu Weijia Source:Global Times Published: 2018/3/5 22:28:39

Even as it has become the world's fastest-growing major economy, India will take decades to catch up with China, media outlet Fortune India said in a recent report. But although India still lags behind China in various fields, there is probably no need for the emerging country to be too frustrated.

India's GDP grew 7.2 percent in the October-December quarter. This was a hard-won achievement when the country was making great strides in economic reforms. With a large population and a democratic model, India has unique national conditions, so it can't just copy other nations' models of economic development.

The most urgent task for India would seem to be seeking a path that suits its development level and realities, instead of comparing itself with China.

Chinese investors have already taken a close look at India's economic situation in search of potential business opportunities. Chinese enterprises such as smartphone maker Xiaomi have shown great enthusiasm in stepping up investment in the emerging market.

India is poised to become one of the world's largest consumption markets over the next decade, and Chinese companies don't want to miss out.

It's good for each country to see the other expand rapidly. China's GDP growth can offer opportunities for Indian enterprises to make money. For India, it would be better to take advantage of these opportunities than to compare itself with China and feel disappointed.

It is not possible for India to suddenly exceed other major economies such as China. India has several weak points, but it also has unique advantages in labor costs. China and India have broad potential for cooperation in fields such as manufacturing. Chinese enterprises are happy with India's economic miracle. Although India's economic reforms have encountered some problems, reforms have become an important internal driving force for growth. For instance, coal mining has been gradually opened to the private sector for commercial use, ending the coal monopoly in India, which reportedly has the third-largest coal reserves in the world.

It won't be hard for India to remain the fastest-growing major economy in the world, as long as it has the determination to pursue domestic reforms.

The author is a reporter with the Global Times.


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