Why is the development potential of India greater than that of China?

India has greater development potential than China in some important fields.

Today, when the world pays attention to China's economic development achievements, another economic miracle is quietly emerging in India. Singapore's Lianhe Zaobao reported today that as the two most populous developing countries in the world, the era of East Asian dragons and South Asian elephants shining and competing with each other may finally begin.

According to official statistics, from July to September last year, the Indian economy grew by 8.4%, second only to China among the major economies in the world. More importantly, more and more people believe that India's reforms since 199 1 have shown results. On the one hand, the IT industry is gaining international attention for the Indian economy; on the other hand, the manufacturing industry is also gaining momentum, and its annual economic growth rate is expected to remain above 7% for a long time. Jaswant Singh, India's finance minister, recently said that India was at the tipping point of "explosive growth".

According to the report, the optimistic prospect of the Indian economy is also changing people's evaluation of the comparison between China and India. In the past, public opinion completely believed that the China model was superior to the Indian model, but now it no longer exists.

For example, an article jointly published by Huang Yasheng, a scholar at the Massachusetts Institute of Technology, and Tarun Khanna, a professor at Harvard University, holds that China's use of foreign capital to promote economic growth will not be as effective as that of India, which encourages domestic enterprises to participate in international competition.

Two scholars pointed out that among the top 200 small enterprises in the world selected by Forbes in 2002, * * * had 13 Indian enterprises, while China had only four. They also believe that compared with China, India has more conditions to become the world's high-tech laboratory.

Goldman Sachs, an investment bank, predicted in the report Towards 2050 released at the end of last year that India's economic growth rate may surpass that of China around 20 10, and it is expected to become the fastest growing country among the major economies in the world in the next 50 years.

According to the report, while the external views have changed, the concept of Indians has also undergone important changes. Narayana Murthy, India's respected IT giant, said in Beijing a few days ago that Indians now generally have "the will to learn from China and compete with China at the same time".

It is reported that the Indian government is planning to follow China's example and set up about 20 special economic zones this year to attract more foreign investment and promote exports. This means that China's attraction to foreign investment may be weakened by Indian competition.

On the other hand, the report also pointed out that in some important areas, India has greater potential than China, but in other development conditions, China's advantages are still obvious.

For example, China's advantage lies in manufacturing, which enables most people in society to enjoy the benefits of economic development more than India's, and India's advantage lies in research and development. At present, there are nearly 654.38 billion manufacturing workers in China and only 9 million in India. The rapid development of IT industry has only created 1 10,000 jobs for India.

The report also quoted Jin Canrong, deputy dean of the School of International Studies at Renmin University of China, as saying, "India's political structure is modern, its economic structure is basically modern, but its social structure is still pre-modern." He pointed out that the effective operation of market economy needs some preconditions, for example, society needs to break the traditional structure based on blood and family.