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India's Advantages over China

Posted by: Steve Hamm on March 06

This came in overnight as a comment on an earlier post, but, because of its thoughfulness, I’m posting it up here so it gets more eyes.

From VJ:


In an article published in 2003 called “Can India overtake China?” Tarun Khanna of Harvard Business School and I argued that India’s domestic corporate sector – strengthened by the country’s rule of law, its democratic processes and relatively healthy financial system – was a source of substantial competitive advantage over China. At that time, the notion that India might be more competitive than China was greeted with wide derision.


Two years later, India appears to have permanently broken out of its leisurely “Hindu rate of growth”– an annual gross domestic product increase of around 2 to 3 per cent – and its performance is beginning to approach the east Asian level. From April to June 2005, India’s GDP grew at 8.1 per cent, compared with 7.6 per cent in the same period the year before. More impressively, India is achieving this result with just half of China’s level of domestic investment in new factories and equipment, and only 10 per cent of China’s foreign direct investment. While China’s GDP growth in the last two years remained high, in 2003 and 2004 it was investing close to 50 per cent of its GDP in domestic plant and equipment – roughly equivalent to India’s entire GDP. That is higher than any other country, exceeding even China’s own exalted levels in the era of central planning. The evidence is as clear as ever: China’s growth stems from massive accumulation of resources, while India’s growth comes from increasing efficiency.


The microeconomic evidence also casts India in a better light. While India’s stock market has soared in recent years, the opposite has happened in China. In 2001, the Shanghai Stock Market index reached 2,200 points; by 2005, half the wealth wiped out. In April 2005, the Shanghai index stood at 1,135 points. This sharp deterioration occurred against a backdrop of GDP growth exceeding 9 per cent a year. It is difficult to find another country that has this strange combination of superb macroeconomic performance and dismal microeconomic performance. It is a matter of time before the two patterns converge.


Why, then, is India gaining strength? Economists and analysts have habitually derided India’s inability to attract FDI. This single-minded obsession with FDI is as strange as it is harmful. Academic studies have not produced convincing evidence that FDI is the best path to economic development compared with responsible economic policies, investment in education and sound legal and financial institutions. In fact, one can easily think of counter examples. Brazil was a darling of foreign investors in the 1960s but ultimately let them down. Japan, Korea and Taiwan received little FDI in the 1960s and 1970s but became among the world’s most successful economies.


An economic litmus test is not whether a country can attract a lot of FDI but whether it has a business environment that nurtures entrepreneurship, supports healthy competition and is relatively free of heavy handed political intervention. In this regard, India has done a better job than China. From India emerged a group of world-class companies ranging from Infosys in software, Ranbaxy in pharmaceuticals, Bajaj Auto in automobile components and Mahindra in car assembly. This did not happen by accident.


Although it has many flaws, India’s financial system did not discriminate against small private companies the way the Chinese financial system did. Infosys benefited from this system. It was founded by seven entrepreneurs with few political connections who nevertheless managed, without significant hard assets, to obtain capital from Indian banks and the stock ­market in the early 1990s. It is unimaginable that a Chinese bank would lend to a Chinese equivalent of an Infosys.


With few exceptions, the world-class manufacturing facilities for which China is famous are products of FDI, not of indigenous Chinese companies. Yes, “Made in China” labels are still more ubiquitous than “Made in India” ones; but what is made in China is not necessarily made by China. Soon, “Made in India” will be synonymous with “Made by India” and Indians will not just get the wage benefits of globalisation but will also keep the profits – unlike so many cases in China.


Pessimism about India has often been proved wrong. Take, for example, the view that India lacks Chinese-level infrastructure and therefore cannot compete with China. This is another “China myth” – that the country grew thanks largely to its heavy investment in infrastructure. This is a fundamentally flawed reading of its growth story. In the 1980s, China had poor infrastructure but turned in a superb economic performance. China built its infrastructure after – rather than before – many years of economic growth and accumulation of financial resources. The “China miracle” happened not because it had glittering skyscrapers and modern highways but because bold economic liberalisation and institutional reforms – especially agricultural reforms in the early 1980s – created competition and nurtured private entrepreneurship.


For both China and India, there is a hidden downside in the obsession with building world-class infrastructure. As developing countries, if they invest more in infrastructure, they invest less in other things. Typically, basic education, especially in rural areas, falls victim to massive investment projects, which produce tangible and immediate results. China made a costly mistake in the 1990s: it created many world-class facilities, but badly under-invested in education. Chinese researchers reveal that a staggering percentage of rural children could not finish secondary education. India, meanwhile, has quietly but persistently improved its ­educational provisions, especially in the rural areas. For sustainable ­economic development, the quality and quantity of human capital will matter far more than those of physical capital. India seems to have the right policy priorities and if China does not invest in rural education soon, it may lose its true competitive edge over India – a well-educated and skilled work-force that drives manufacturing success.


Unless China embarks on bold institutional reforms, India may very well outperform it in the next 20 years. But, hopefully, the biggest beneficiary of the rise of India will be China itself. It will be forced to examine the imperfections of its own economic model and to abandon its sense of complacency acquired in the 1990s. China was light years ahead of India in economic liberalisation in the 1980s. Today it lags behind in critical aspects, such as reform that would permit more foreign investment and domestic private entry in the financial sector. The time to act is now.

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Reader Comments

Govind

March 9, 2007 03:09 AM

Couple of things in response to VJ's post:

The argument that India's growth rate has increased to 8.1% cannot be seen in comprison to China's growth rate as the base is different. Also, if the law of diminishing returns holds, then would'nt India also need to invest in capital to to sutain high growth rate over a period of time? After all, how much juice can be extracted simply through efficiency gains?

In VJ's comparison between India and China, one thing I find missing is the comment on the fact that perhaps not enough jobs are being created in India in the manufacturing sector. With India's large population, this surely must be of concern.

Mandar

March 12, 2007 06:48 AM

I am an Indian working in India. I travel quite often to China. The difference in the level of infrastructure is glaring, to say the least. Even a small city in China, has a much better infrastructure than the commercial capital of India, Mumbai. As of now, Mumbai & its suburbs does not have sufficient power, water or proper roads, its public transport is crumbling and there is no way that these ugly truths, can be brushed under the carpet. The current level of growth is unsustainabale with the present level of infrastructure. What's worse, is that nobody in the government is bothered about this either, no doubt they are preening with pride at reports of fantastic growth and opportunities here, which are reported by you? How long will the feel good factor last? No one knows but I suspect not for very long.

Michael

March 21, 2007 10:02 AM

What India should focus on is NOT high tech stuff but agriculture. India is still an agricultural society. Remember hundreds of farmers killed themselves last year in India?

tweezer

March 30, 2007 02:47 AM

It will be a combination India and China conglomerate called "Chindia".

Until then let the india/china debate continue with full vigor!

Vinay

April 6, 2007 05:03 PM

I am not a financial expert, but I believe if you count the GDP generated by India's parallel economy (or the black market) in addition to the regular government figures of the GDP, the growth might be even on a higher path...

Sanmitra

April 7, 2007 04:10 PM

My respects to Madar comments.
I agree that India does not have a good infrastructure as compared to China, but neither do we have as bad ethics as China. We do not promote child labor and have established laws to ban it, We are trying to get rid of our sweat shop while China is otherwise. We are working in providing world class education such as IIT, IIM, VJTI, etc. We are promoting entreprenuership more than ever before. Technology, pharmacy, service sector, jewellery industry, etc are far better in INdia than China.
Yes we are working on the infrastructure problem, but you can not expect one country to be the best in all aspects. Even the US and former superpower Russia are not.
Economic development is greatly important, but it is more important for us to take care of our people's interest than become a money hungry country. In the world we are able to see some examples of the latter, US = money hungry = Iraq war
I do have faith in India's growth and I do believe that we can become more developed all roundedly than just being money hungry and the next US

David

April 15, 2007 06:18 AM

Sanmitra:
You must be joking. Everybody know that India has a worst record on child labour and child abuse.

Downs

April 17, 2007 10:14 AM


When coming to compare India with China, one of the most important evidence being frequently referenced is India's democracy. People keep saying that India would eventually overtake China because of India's democratic system.

I wish I could believe that. But my question is that if India's democracy has not worked well in solving all the problems India has been facing since August 1947 India became an independent state, what makes the people so sure that it would work well now ? What is different time time ?

Kartik

April 17, 2007 08:03 PM

"US = money hungry = Iraq war "

What an ignorant statement. How is the US 'making money' from Iraq?

As an Indian, I thought you people would actually support the creation of a democracy in Iraq. Your opposition to it shows how phony Indian democracy/values actually are.

Indians are the most money-hungry people in the world. They are super-materialistic and most of their conversations revolve around just 2 topics - money and weddings.

Is India fighting in Kashmir because it is money-hungry?

Ben Johnston

April 20, 2007 03:38 PM

To all self-praising Indians:
Don't accuse just the Chinese of illegal immigration and people smuggling.There are a hell of a lot Indians who are arrested all over the world for the same offences as well.It is not unusual to find illegals from India as well as other parts of south asia trying to enter Europe hidden in concealed cramped up spaces at the back of some vehicle on a very regular basis or trying to get into the middle east in crowded half sinking boats to look for jobs knowing well the reputation of arabs and their contempt for desis or washing up on the shores of North America like sea weed and asking for political asylum.Talk about India as being a country worthy of being labelled as developed and global power only when people seek to migrate to India and not from it.Atleast China can proudly show the world its measure of development in Shanghai and a host of other urban centers while the best India can offer is an eyesore like SLUMBAI.
India's dustbin democracy is nothing to feel proud of if every government that gets voted to power has the same corrupt self serving agenda and gets nothing done and who says India is more free than China? If having the freedom of starving to death on the streets like stray animals for hundreds of millions of impoverished Indians or having freedom and dignity as regulated by the caste system are the Indian's idea of freedom/democracy then I'm sure the Chinese are glad they don't have democracy.
I have been to India many times and travelled widely within the country and the apalling levels of grinding poverty was all too evident everywhere.India also has the highest number of AIDS cases in the world and increasing by the day and with a corrupt government and overall uncaring society in place,it's unlikely India will be able to arrest this catastrophy in the making.
I would agree that it is foolish to compare India with China as apart from similar demographic size the two share nothing else in common.China is light years ahead of India economically,militarily,development wise and even in terms of international prestige China clearly has the lead by a very wide margin.No doubt China has it's share of serious problems and challenges but atleast the Chinese "dictators" running the country have proved themselves competent enough to steer the ship while it navigates through stormy conditions.The same can't be said about "shining" India.
Indians should stop their shameless self-promotion campaign.With so little to show the world you Indians should concentrate harder on overcoming the problems facing you instead of thumping your chests in self-congratulation.

Ben Johnston

April 20, 2007 03:40 PM

It doesn't take a lot of brain power to tell why Indians in every India vs China blog are so hoping for China to fail.Thats because jealous and defeatist Indians know for sure that India will never achieve the same level of success as China.

India will never develop into anything significant as long as Indians are controlled by such a mindset as wishing for the neighbour's house to burn down just because their own house is a disgusting mess.Nice going Indians!! (Two thumbs down)

minnu

May 4, 2007 08:25 AM

surely india could come over china with its present status of education tech power &so on. But still we have to come in increasing the living standard of our poor millions,accessiblity&availablity of health svs to the peripherty&so on.gud luck india,keep going.

wombat

May 9, 2007 01:08 AM

Having clients in both countries allowed me the chance to visit Chindia quite frequently. The insight into their individual tech sector also proves informative. Manufacturers of white goods esp. electronic/electric appliances in India are getting threatened & overhelmed by chinese imports that sell even below the bill of materials of the indian products. The development/manufacturing base in India, esp in Pune, Bangalore and Mumbai is especially crowded and fragmented. There can be thousands of small-scale plants producing these goods at a rate of maybe 3-4000/year while major Chinese plants bring out products in the hundreds of thousands /mth. The Indian design houses are understandably confident (same say proud) of their development prowess and stubborn enough to refuse to compromise or cooperate with anyone if it means deviating from their own modus operandi. If major distributors like Tata or Reliance have to reply on more than 20 suppliers for the same product range in any one state, it says alot on how badly organized the manufacturing infrastrature is esp regarding transportation hubs, supply chain, supply dependability, etc. The upside is of course if the indians persevere, they would truly obtain a market-changing piece of work and if even only a tiny fraction of the total number of houses achieve that, it would still propel indian economy by leaps & bounds. On the other hand china achieves its high volume of sales because there is already consolidation in the market plus relatively better marketing infrastructure and more robust manufacturing base. In their relentless attempts to cut cost, they partly offset the cost demanding portion of R&D by opening up a specimen of what sells best in the market and implements the same design bolt & screw into their own. The good part is a extremely rapid design-to-product turnaround time and much cheaper wares. The bad part is the killing off of local design houses that are intent on producing out of the blue workpieces and hollowing out the design/manufacturing base of that country. Each nation faces its own problems. For India & China, whoever recognizes and solves theirs first would overtake the other. In this equation, democracy is unfortunately a trivial factor, but pragmatism and drive are decisive.

Not Too Neutral

May 9, 2007 06:17 PM

China 1: Great Infrastructure
China 2: Good Discipline
China 3: Focus and Determination

India: Lot of talk
India: Enjoy the west and praise their mother(slum) land sitting in US and UK.

Frank Opinion

May 27, 2007 08:55 PM

Having read all these comments I know the debate is pretty hot. I was born and brought up in India and been in US for last 6 yrs. Truth is tough to digest but yes we are slack laggards, lazy and yeah idiots. It's not a big deal that we don't have good infrastructure Educational system industries yet they can all come up in just years. The problem is our attitude we are still sleeping. We have politicians who have fooled us created vote banks mass poverty to meet their own selfish ends. We are not even bothered just accepting what we have . We should be thankful to china because all that we are seeing right now is because the dragon is rising economically and we will just have to catch up. Since China opened up it's economy in 1978 and succeeded we saw them and followed suit what a shame!!! If we eliminate the root cause the system the corrupt politicians thats all ...
Now some good news... We always had the people and they are still there. We can take on the world it's just a matter of time. China is a gr8 country but all you idiot's who are getting aggrevated by comparisons with India go to hell.
China has it's own problems the whole economy is export and dollar, the domestic market is just not existing. Again chienses leadership is determined but their methods are strict and rigid like any asian management style. Face the truth yo chinkus no sneaking piracy copying.
And the chindia bashers here
Shut up and mind your own business because the dragon is phewing venom and tiger has started roaring they have a long way to go sit back and watch.

Dragon Fire

June 10, 2007 12:48 PM

Frank Opinion ???? I guess you are the same big mouth who used to post as SmartOpinion in other related forums.

What do you mean China has no domestic market? You are an idiot. China's domestic market is much larger than any India can come up with, thats why all the big service providers like banks, insurance companies etc. along with the large manufacturing concerns want to have a presence in China because of the colossal size of the potential customer pool that the current middle class in China estimated at 600 million (twice the size of the total population of the USA and still growing) is made up of. You Indians should stop your non-stop garbage about China being a source of cheap labour and nothing else as if your India is absorbing a lot of foreign imports right now. India too is a destination for outsourced labour more so because of cost effectiveness for foreign companies rather than quality of Indian labour.

I have no interest in getting involved in a flame war with nonsense spouting Indians and neither am I trying to claim that China is the most developed nation on earth but the constant barrage of anti-China crap does get very annoying and provokes a response.

Deviprasad

June 13, 2007 01:02 AM

India is atleast 10 year down to china in almost all terms.
India needs another revolution to comeup.
China's landscape is bigger although the population is higher,but india the landscape is less for the population, more polution,more crowd and not a pleasent place to live on earth. Metros are the nightmares in India.

Indians are groomed in very tough enviroment, the youthfulness of India and more people are learning the advanced technology, thanks to the IT, this will lead to a ground for inovation in the future.

sathiya moorthy

June 19, 2007 03:21 AM


Hi,
I don't want to compare India and China.
India must change itself in terms of its policy. It must concentrate on development and not on politics.
Each and every hard working citizen of India is paying his tax properly. It should be used for India's development and not for getting good name to the public by giving handsome of soaps, and telling India don't have enough money for its development.
It is a shame to tell that India don't have the capability to develop. Giving its resources for free TV and discount for flims.
Not like joking Indian politicians, who want only politics and don't want development for its own.

Anupam

June 21, 2007 04:03 AM

Hi,
I agree that China-India debate is hot and is going to remain hot for a long time. However, I believe that every country has potential. Both India and China has what it takes to become extreamly rich economies. Someone here used firely statements calling this debete as Anti-China. This is not Anti-China or Pro-India. Its just the authors observations about current growth and crowth potential of India. Every country does that. Its interospection. Best way to be successful is to compare with the closest compatetor. China is a shining example of the level growth which India wants to attain.
There are hundrets of blogs all over the net which praise China's growth.
Yes, India is decades behind China in almost any field of development. Yes, India has a LONG way to go economically and socially. Yes, India is home to a HUGE poor population.
and YES things are changing. People here who have not visited India must do so. You will see changes. Amongst all that mess is a young country which has ambitions and means to move ahead. Its not all talk. India has just taken first few steps on the road which China took decades before we did. We have to catch up. And we are......

Professor Emeritus

July 5, 2007 12:27 AM

US national debt is 9 trillion, trade deficit
more than 850 billion and the overpriced dollar
is about to crash and the blowhards, megalomaniacs
and warmongers may soon be standing in the
soup and bread line.

Giri

July 5, 2007 08:38 AM

The USA will be a three-legged donkey in this
horserace for economic supremacy. And the US
IQ will slide down to 70.

Maharaja Heir

July 12, 2007 09:26 AM

I never cease to be amazed by BW’s obsession with the “India vs. China” comparison. Here is my comment on this from my lifelong experience with India. China is growing much too fast for India to be able to catch up any time soon - also, it has a twenty year head start.

India, I believe, has a greater number of super high IQ men at the top of the pile - more than China (but these men never stay in India - they leave for the United States at the first available opportunity and there isn't much chance of that changing any time soon). However, India also has huge masses of super low IQ people at the bottom of the pile who are going to be a problem in the long run.

When the divisions of Caste begin to disappear in the Urban Jungles and only money differentiates between people, the masses of poor will be a much bigger problem. In previous times the poor were divided among themselves by a thousand different distinctions - of language, regions and of course castes. As these distinctions disappear and a more homogenous (sort of) society emerges, the country will have giant classes that are more directly antagonistic to each other.

China doesn't have this problem as its a more homogenous country. So I would say China stands on firmer footing. But the question that needs to be answered is whether the Chinese are capable of technological innovation to the degree necessary to overtake the United States. We haven't seen any evidence of that so far.

Maharaja Heir

July 13, 2007 07:02 PM

I never cease to be amazed by BW’s obsession with the “India vs. China” comparison. Here is my comment on this from my lifelong experience with India. China is growing much too fast for India to be able to catch up any time soon - also, it has a twenty year head start.

India, I believe, has a greater number of super high IQ men at the top of the pile - more than China (but these men never stay in India - they leave for the United States at the first available opportunity and there isn't much chance of that changing any time soon). However, India also has huge masses of super low IQ people at the bottom of the pile who are going to be a problem in the long run.

When the divisions of Caste begin to disappear in the Urban Jungles and only money differentiates between people, the masses of poor will be a much bigger problem. In previous times the poor were divided among themselves by a thousand different distinctions - of language, regions and of course castes. As these distinctions disappear and a more homogenous (sort of) society emerges, the country will have giant classes that are more directly antagonistic to each other.

China doesn't have this problem as its a more homogenous country. So I would say China stands on firmer footing. But the question that needs to be answered is whether the Chinese are capable of technological innovation to the degree necessary to overtake the United States. We haven't seen any evidence of that so far.

RC

July 17, 2007 08:04 AM

China has done many things right but there are quite a few glaring wrongs too. India has done few things right but all the wrongs it is blamed for is something it got in legacy. The british plundered all the wealth they could from this country. Remember, this country was one of the most powerful in terms of global trade before the british entered under the guile of being 'merchants'. India was also the seat of learning and had the world's first university at Nalanda. India was always great, it was cheated and plundered for 200 years and a few generations were made to believe they are dumb. This will however change; one can already see it happening. Those who can’t must be either blind or ignorant, to say the least. The point is, don't just blame (primarily ones from UK or US) because you are the reason for the mess that we’re trying to clean. Asia in this century will ROCK! …and others will probably go back to what they always were….pirates and plunderers.


JC

July 21, 2007 03:44 PM

The Indian government proves to be inefficient to solve problems due to numerous conflicting parties. Let's imagine that India begins construction on a supertall skyscraper. Immediately, the slum dwellers who live in the area of construction will retaliate. Liberalists will blame this act as a violation of human rights. Environmentalists will complain of the risks it posseses to the environment. Land experts will refuse because of some infrastructure problem just to avoid working. Religious extremists will riot claiming India is following Western styles. To get to the point, this skyscraper will never be built. Since India is a democracy that gives voice to all its citizens, it can never get anything done. Numerous parties ignorantly and selfishly retaliate either to display their power or to avoid working. In fact, India could barely get Bollywood to rise because many Indians rebelled for they feared Westernization. So Mumbai Underworld, a network of gangsters in Mumbai, funded the majoritiy of Bollywood movies. We still have this problem today. So those who believes in democracy, see India and you'll most likely reconsider. The root of this problems is India's enormous and diverse population. The lopsided ratio of jobs to people causes the slums we see today and constant disagreement accomplishes nothing.

Celestial Emperor

August 8, 2007 07:02 PM

Maharaja says

"But the question that needs to be answered is whether the Chinese are capable of technological innovation to the degree necessary to overtake the United States. We haven't seen any evidence of that so far."

Indians shamelessly boast about being more innovative than Chinese. We haven't seen any evidence of that so far.

jcage

August 10, 2007 01:52 PM

China is moving very fast in the filling of new patents while India is falling behind according to this report:
http://in.reuters.com/article/topNews/idINIndia-28912620070809?pageNumber=1
"
Asian economies lead growth in patent filings, India lags - U.N.
Fri Aug 10, 2007 4:40AM IST
Email | Print | Digg | Single Page
[-] Text [+]

By Laura MacInnis

GENEVA (Reuters) - China and its fast-growing Asian neighbours helped power a 4.7 percent rise in worldwide patent filings in 2005, the World Intellectual Property Organisation (WIPO) said on Friday.

In a report, the U.N. agency said there were 600,000 patents granted in 2005, the last period for which complete figures were available. The vast majority went to Japan, the United States, China, South Korea and Europe.

While applicants from Japan and the United States owned 49 percent of the 5.6 million patents in force in 2005, more and more developing nations are seeking legal protection for their innovations, WIPO Deputy Director General Francis Gurry said.

India, however, has not similarly boosted its participation in the patent system. Applications from Indian residents fell 8 percent in 2005, from 2004, a period when Chinese filings rose 42 percent, Indonesian filings rose 17 percent and South Korean filings rose 16 percent, according to the WIPO figures.

Gurry said India's technological scene had not translated into a jump in patents, but a drive to open new patent offices should trigger an increase in filings in five years.

China's patent applications rose more than eightfold between 1995 and 2005, while South Korea more than doubled its number.

"Northeast Asia has become a major force technologically. We have seen explosive growth out of the Republic of Korea and China," Gurry told journalists in Geneva."

jcage

August 10, 2007 05:31 PM

Patent report for 2007 and check China vs India R & D

http://www.wipo.int/ipstats/en/statistics/patents/patent_report_2007.html#P173_14118

jcage

August 11, 2007 02:59 AM

Here is a link of WIPO and WIPO, initial stand for World Intellectual Property Organization and its latest report for 2007 edition show that China is top 5 in patent filling by resident (companies and industries that is filling for patent in their own country)

http://www.wipo.int/ipstats/en/statistics/patents/patent_report_2007.html#P211_16003

PR

August 23, 2007 08:25 AM

Indians cannot compete with china until and unless they clear their garbage full of idiot oilitician,uneducated puplation,poor infrastructure,
Regarding the supermacy indians will neber catch up with chinese peoples..
see india all over... south LTTE, NORTH KASHMIR PROBLEM...NORTHEAST NAGALAND TERRERISM...NAXALITE PROBLEM IN ANDHRA ...NEPAL DEBACLE...PAK SPONSER TERRERISM..CAST PROBLEM IN UP,BHIHAR..

TO BECOME a develop country india requires 100 years.

bhumi

August 23, 2007 01:51 PM

let me tell you guys. it is wrong in measure a country progassiveness in plain GDP or the ammount of steel or concreate and compare it against other countries.i belive every one will agree free speech,powerful judicial system is the frist thing required to be cilivlised and it needs to be practiced. infrastucture can be created in decades and can be destroyed in no time ( now in IRAQ , in 19,20 century it was india ). just see around the world USSR became poor RUSSIA in transition of domacracy.there are many countries are like that (east europian, latin,arabic ). when china going to move to damocracy it may spend decades to get stabilize.

till asian gaints arrive this world has to suffer with bad US international polocy. they want to force domacracy in IRAQ and silently supporting in PAKISTAN ,mynmar,china ( us wants china to be single party country so that US MNCs can continue to pollute china, exploite people for better NASDAQ results )even USA is not developed country. it is as good as any cash rich arabic country.

deepti

September 13, 2007 04:07 AM

Hi
I am with you i know by this i will upset many
but i can't help it. you know what is the problem with we Indians we never incorage are people i accept that we are not best but that does 't prove that we are bad.India is not a name of a leader but it is symbole of a cmmmunity ,and so every member of this socity is responsible ,for what ever happens in the nation. sorry for that but i fell leaders are like this because we allow them to be like this .

Indian & Proud to be so

September 14, 2007 09:00 AM

Will India overtake China? Whoever says no, does not have any idea about what they are speaking. Alleviating the poverty levels, creating infrastructure are all means and steps to reaching where India actually belongs to - the best.

What differentiates India's Growth from the Chinese growth?

What's happening to the fiscal deficit levels in both the countries?

What's the kind of exposure of banks in both countries?

What are the ROCE levels of Co's in India and China?

How is India catching up in the infrastructure front?What are the kinds of investments being made, and how well are the contractors sticking to their deadlines?

What is the level of quality of Chinese products when compared to those made in India?

How is the level of education increasing in both countries?

Is there any comparison in the IQ levels of Indians and Chinese?

How many world leading Chinese business tycoons do you know?

Can any of the guys who spoke against India answer any of these? I am sure they can't, because from what they have written, the lack of brains is apparent.

The point is height of a building one can build depends on the kind of basement on which it is buing built.

I can very well understand the itch that westerners have about India and Indians :). Indians are taking away their jobs.:) And that for sure is going to happen for a long time, till the time income levels at purchasing power parity comes close by. US$ has weakend so badly against Indian Rupee - Already!

Old Indian wisdom from the literatures say nature takes it's revenge.

India was looted by the 'well cultured' 'intellectual' westerners till just 60 years back. All the wealth was extorted from this country for the development in the west. Now I guess, it has started flowing back.It can't be plugged, you see?

Regarding US 'establishing' 'democarcy' in Iraq. Which Idiot doesn't understand that the whole drama is being played to extort oil? Now Iraq. Next plan should be Iran. no no, mebbe Saudi Arabia. O.K. Let's check up which has more oil reserves!!!

OK. Jokes apart, I can see that India is well on track to becoming a global super power. The point that many are failing to understand is the slope of the future curve. It's gonna be pretty steep, given the growing affluant middle class population sizing to around 0.55 billion in the income range of 0.1 million to 0.5 million rupees. What is really below poverty line given the purchasing power of Indian rupee are around 100 million.That's around 10% of the population. I have travelled in to the ruaral areas of India accross states, but somehow have failed to see the kind of people who are really below the official definisions of poverty.One more thing unknown to the west is, many in the slums make $1000 a month. The beggers you see on the traffic signals are kinda actors who make money(Eh!)and they even pay to take positions in the signals.

Worth of the money multiplies the number of times it changes hands, which is where India is going to have advantage.

Indian manufacturing suffers when compared to China only because of the high level of taxes and duties and their cascading impact. This is expected to be corrected with the implementation of national level GST. Once that comes in place, theres no stopping India as the next manufacturing base.

You can crib or accept the fact - India is Roaring - Roaring to become the next super power - and we can see it happening - in just another 20 years.

yasin malik

September 14, 2007 07:39 PM

India a superpower in the next 20 years??? Good luck at day dreaming Indians

yasin malik

September 14, 2007 07:46 PM

India is a dirt poor country you idiot, you are fooling nobody but yourself

unnikrishnan

September 19, 2007 03:37 AM

Though i am an indian i could well be say that only immature minds can compare india with china.China is way ahead of india in all areas.There is no relevence for an argument.Bare facts prove all these.Present india doesn't add any sort of signifiicant value to the world economy,and is unlikely to do so in the foreseable future.Indians can really be proud of their encient wisdom though scrapped now.nothing else.

yasin malik

October 12, 2007 10:42 PM

Latest statistics show that China has more billionaires than India and is just behind the USA at number 2. Latest statistics also show that the number of Indian immigrants both legal and illegal settling permanently in other countries has surpassed the number of Chinese immigrants.

'Shining future superpower' India sure ain't attractive to the majority of Indians. Probably all the Mera Bharat mahaan hyping crowd posting in blogs like this one are Indians who live outside India and who will probably never want to live in India.

vijay

October 13, 2007 02:54 AM

India lacks proper planning. A good example of this is the traffic system. Another example is the political system. Dirty politics and corruption is tolerated in this country. When we are talking about success, we have to consider the bigger picture not just a mass of people. There are many slums and a huge number of the population is below poverty line. Child labour still persists. Small scale industries are still not being recognised properly. What kind of growth are we looking at? Well, if we have to see the country prospering we should be able to judge at least 70%-80% of the population. Are we in a position to judge them? Are we or the government in a position to see a future for them? Yes, but is the answer positive? If its not, will the country prosper in the next 100 or 200 years? Why are so many Indians fleeing the country every day? How can a country prosper losing skilled countrymen? What growth are we talking about with all these micro and macro economic issues with no solutions?

Zhou

October 26, 2007 09:26 AM

I am a Chinese and I am amazed by this debate.

Firstly, I very much admire the Indian people and their culture. We were taught in school that India has contributed a great deal, together with other great nations, to human civilisation. Buddism came comes from India, and that is the first thing most Chinese will relate India with.

Secondly, we are used to critise bitterly on our mistakes. Our president and premiar always spend roughly the same amount of time on the achievements and the sheer problems ahead, especially in an international occasion. As an audience, we often ignore the first part and are more think more about the second part. I hardly hear any comparison with India by government officials. I think it is nature for anyone to compare only with the best in the world in order to get any meaningful outcome.

I am happy to see India is making great progress. I used to work in Huawei, I remember my boss praised a lot about the IT sector in India. Huawei have sent a lot of young people there over the years to learn from the India achievement. We try to understand why other people succeed, not why they are said to be doomed.

abhijit subudhi

December 4, 2007 02:02 PM

i am an indian,but why u people r talking only about one side of the equation.if u r multiplying 2 to the left hand side,u will have to do the same with the right one.if india will be heading for moon,then china will also head for stars.

AryaPrakash

January 20, 2008 02:56 AM

Pakistan is the most dangerous and corrupt nation in the world. It is a land of force converted and raped Hindus. Peace upon all Hindu victims in Pakistan and may they sink deeper into the hell they deserve. Now that being said, India is moving fast. China and India have no comparison. They will both be super powers. Pakistan will break apart and have a civil war. So China note this and do not support a nation that does not know it's own history. They idealize Qasim an Arab Animal who stole all the money in Sindh. And Jinnah who was himself a Hindu convert.

Brandon

February 2, 2008 03:25 AM

Why is there such a big competition between India and China? There is no way way for India to possibly come close to China, China is simply too big and too big efficient. But those Indians try to use the smallest of arguments to say "India is winning." How pathetic.

Kwong

March 12, 2008 04:06 AM

interesting debate. As a Chinese, I would like to express my best wishes to both China and India. People in these two countries suffered a lot in the past or even at the present. No best system or best culture in the world. The one we get used to is the best.

aj

March 17, 2008 09:36 PM

India is the world’s largest, oldest, continuous civilization.
India never invaded any country in her last 10000 years of history.
India is the world’s largest democracy.
Varanasi, also known as Benares, was called “the ancient city” when Lord Buddha visited it in 500 B.C.E, and is the oldest, continuously inhabited city in the world today.
India invented the Number System. Zero was invented by Aryabhatta.
The World’s first university was established in Takshashila in 700BC. More than 10,500 students from all over the world studied more than 60 subjects. The University of Nalanda built in the 4th century BC was one of the greatest achievements of ancient India in the field of education.
European languages all inherited from India. Sanskrit is the mother of all the European languages. Sanskrit is the most suitable language for computer software - a report in Forbes magazine, July 1987.
Ayurveda is the earliest school of medicine known to humans. Charaka, the father of medicine consolidated Ayurveda 2500 years ago. Today Ayurveda is fast regaining its rightful place in our civilization.
Britain is rich because of India and U.S. is rich of Britain. Although modern images of India often show poverty and lack of development, India was the richest country on earth until the time of British invasion in the early 17th Century. Christopher Columbus was attracted by India’s wealth.
Long before U.S. even heard of GPS, the art of Navigation was bornin the river Sindhu 6000 years ago. The very word Navigation is derived from the Sanskrit word NAVGATIH. The word navy is also derived from Sanskrit ‘Nou’.
Bhaskaracharya calculated the time taken by the earth to orbit the sun hundreds of years before the astronomer Smart. Time taken by earth to orbit the sun: (5th century) 365.258756484 days.
The value of pi was first calculated by Budhayana, and he explained the concept of what is known as the Pythagorean Theorem. He discovered this in the 6th century long before the European mathematicians.
Algebra, trigonometry and calculus came from India. Quadratic equations were by Sridharacharya in the 11th century. The largest numbers the Greeks and the Romans used were 106 whereas Hindus used numbers as big as 10**53(10 to the power of 53) with specific names as early as 5000 BCE during the Vedic period. Even today, the largest used number is Tera 10**12(10 to the power of 12).
IEEE has proved what has been a century old suspicion in the world scientific community that the pioneer of wireless communication was Prof. Jagdish Bose and not Marconi.
The earliest reservoir and dam for irrigation was built in Saurashtra.
According to Saka King Rudradaman I of 150 CE a beautiful lake called Sudarshana was constructed on the hills of Raivataka during Chandragupta Maurya’s time.
Chess (Shataranja or AshtaPada) was invented in India.
Sushruta is the father of surgery. 2600 years ago he and health scientists of his time conducted complicated surgeries like cesareans, cataract, artificial limbs, fractures, urinary stones and even plastic surgery and brain surgery. Usage of anesthesia was well known in ancient India. Over 125 surgical equipment were used. Deep knowledge of anatomy, physiology, etiology, embryology, digestion, metabolism, genetics and immunity is also found in many texts.
When many cultures (Anglo Saxons, Germans, French) were only nomadic forest dwellers over 5000 years ago, Indians established Harappan culture in Sindhu Valley (Indus Valley Civilization).
The four religions born in India, Hinduism, Buddhism, Jainism, and Sikhism, are followed by 25% of the world’s population.
The place value system, the decimal system was developed in India in 100 BC.
India is one of the few countries in the World, which gained independence without violence.
India has the largest pool of Scientists and Engineers in the World.
India is the largest English speaking nation in the world.
India is the only country other than US, to have built a super computer indigenously.
In 2008 India currently has 4 dollar Billionaires in the top ten super rich Forbes billionaire list more than United States or any other country in the world.

China means Slavery

April 13, 2008 08:07 PM

China grows thanks to its hundreds of millions of slaves who work in the sweatshops for their AMERICAN masters! Don't you ever for a second ignore the fact that a huge majority of the companies doing business in china are American. The Americans are enslaving you in your own country as your communist gov't watches on.

No matter how many more shanghai china produces, a slave country would never truly be a superpower. And I would never want to be born in a sweatshop to some slave parents working for their White (American) masters.

peter

May 20, 2008 12:44 AM

forum is full of IQ midgets

linama

May 27, 2008 12:57 AM

this is funny stuff!

I am a chinese,spent the last 20 years in US and have been to Bangalore a few times. I have to say Bangalore is at the best similar to where Shanghai was 15 years ago - and I think Shanghai had better roads even then.

I also immediately saw corruption the minute I landed - the custom agent asked for money to let me bring in my cameras, he said it was a tax - negotiable apparently, as he bargained with me, I gave him 10 bucks at the end and thought is was entertaining.

I've never experienced this level of petty corruption in China - at least not at the boarder.

I used to thin China is dirty when I compared it to Japan and US, but Bnagalore made me think even some of less developed cities in China are clean.

I can also list thousands of items to show how great china "had" been. But that means nothing if you stop achieving.

so stop listing your "past" achievements and start now again. I want to see a clean Bangalore, a new airport and a decent road from the airport to the city as I will be traveling there a lot!

THE CONCLUDER

July 7, 2008 12:53 AM

THIS IS IT >>THEREFORE WE CONCLUDE THAT THIS IS GOING NOWHERE...

-->DIFFERENT COUNTRIES
-->DIFFERENT OPINION FROM DIFFERENT PEOPLE

PEOPLE OF INDIA THINKS THEIR COUNTRY IS BETTER AND PEOPLE OF CHINA THINKS THAT THEIR COUNTRY IS BETTER THIS IS WHATS CALLED ENTHOCENTRISM

right balance

July 13, 2008 03:01 PM

I come from Bombay, and it brings a smile to my face when people consider the slums of Bombay a sign of poverty. Ignorance , especially if it depends on visulas is deceptive. I have moved around the slums, I know the people who live there, I see their grit and determination. These are people who have migrated from their villages and sought a better living in Bombay. You would be surprised to know the income of the people in these slums many times is higher than the people living in apartments, there are also small business among these and people are also happy there.

China is a great country , a great people and it deserves great respect. It is ridiculous to have comparasions of any sorts, it just doesnt work this way. Some forum members have biases and that is not healthy. For a long tme, India did not have a vision for itself, but now it has turned its eyes towards China, I am personally glad for this as I am sure this healthy competition will certainly help India. India needs to change its lethargic attitude big time, the country has to have a joint vision and everybody should work in that direction. For anti India persons, I would say, today is not our day, but when the day is come, remember.........

Observer

August 1, 2008 01:35 AM

India is still a typical third world country with functional anarchy,exterme corruption and chaotic and extremely poor infrastructure.No remarkable progress is seen any part of india.Can you imagine the city(which indians proudly call the silicon valley of India)with 6 Hours power cuts each day!!!.

The standard of living of most of the people in India (90%+) is as same as that of a typical underdeveloped africal country.

There is no world class city,road,or even a street in India.


India is a land inhabited by ignorant uncivilized people.

Aishwarya

August 18, 2008 11:39 AM

I am an Indian & I am very amused read comment that china means slavery. At least these slaves work for the development of there country they are serving for the development of there country not for the detoration of there country, these slaves much better than political master of our country like who burns Mumbai in the name religion,caste.We lost one arenautic engineer .What that arenautic engineer do for our country nothing only pave one brick more for Indians development but..... no we do'nt want such slaves we want master & heroes like them to become no1 in communalisim & using our democracy in a such a right way Awesome.... Ya India's democracy is really brilliant even Chinese dictator feel pride of it

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