Indian Economy : A Comparative Overview with China ART

1
Indian Economy A Comparative Overview with
China

• ARTI NANAVATIPROF. OF ECONOMICS DIRECTOR,
  CENTRE FOR CANADIAN STUDIES MAHARAJA SAYAJIRAO
  UNIVERSITY OF BARODA
• VADODARA- 390002 GUJARAT-INDIA
• DEPT. OF ECONOMICS, SIMON FRASER UNIVERSITY
  BURNABY, BC, CANADA
• 18 JUNE, 2009

2
Some General Facts

• India is the worlds second most populous country
  of over 1 billion people after China.
• Urban population 28 of total. (China 39)
• More than half of its population is 25 years of
  age. Demographic dividend.
• Measured in USD exchange rate terms, 12th largest
  in the world, with a GDP of 3.32 trillion (PPP)
  , China ranked 2nd largest with GDP of 7.8
  trillion. (2008)
• PCI 2,900 at PPP and that of China 6100 (2008)
• Population below poverty line is 27.5 (2008
  est.) China 10
• World Bank classifies India as a low income
  economy

3

• The contribution of Agriculture, industrial and
  service sector (2007-8) in GDP has been 21,24 and
  55. ( In China the corresponding percentages are
  11.3, 48.6 and 40 in GDP 2008)
• Agriculture is the predominant occupation in
  India, accounting for about 60 of employment (
  China 43) . The service sector makes up a
  further 28 (China 32) , and industrial sector
  around 12 (China 25).
• Organized sector employs 8 of workforce (two
  thirds of which are in public sector), and
  produces about 40 of GDP. Rest in informal
  sector --with predominance of women. Urban
  informal sector is a fast growing sector.
• 30 of total labour is constituted by casual
  labour and only 10 are in regular employment.
• Major problem not of open unemployment but of
  underemployment and disguised unemployment.
• Unemployment rate 6.8 (2008 est., in China 4.3
  is official and 17 unofficial UR).

4
Why India?

• GDP growth rate 9 in 2007-2008, slowed down to
  7.3 in 2008-9.
• Major industries are Textiles, chemicals, food
  processing, steel, transportation equipment,
  cement, mining, petroleum, machinery, software.
• Services are a growing sector and play an
  important role in Indian economy. India is an
  imp. back office destination for global
  outsourcing of customer services and technical
  support.
• Major exporter of highly skilled workers in
  financial, software, software eng.
• Potentials are in , manufacturing,
  pharmaceuticals, biotechnology, nanotechnology,
  telecommunication, shipbuilding, aviation,
  tourism and retailing.

5
Composition of Indias GDP (at Factor Cost by
Economic Activity at 1999-2000 prices, in)

• 
  2000-01 2007-08
• 
  
• 1)Agriculture etc
  23.89 20.55
• 2)Industry
  25.80 24.71
• 2.1 Manufacturing
  15.30
• 2.2 Construction
  05.81
• 3) Services
  50.30 54.74
• 3.1 Trade, hotel, Restaurants
  14.34 26.80
• 3.2 Transport, storage communica.
  07.96
• 3.2 Finance, insurance, etc
  13.04 14.32
• 3.3 Community, social and per.
  14.98 13.62
• service
• Inclusive of2.1, 2.2, of 3.2. Source EPW
  14TH June , 2008 and Economic Survey of India
  2007-8
• Source EPW June 14, 2008

6
India- Structural Transformation-?

• Economic policy Approach
• i) Since independence (1947) till almost
  late eighties followed a socialist inspired
  approach- strict govt. control over -private
  sector participation, foreign trade and FDI
  (Approach-import substituting rather than export
  promoting) .
• ii) Indias low average growth rate ( 3) from
  1947-80 was referred as Hindu rate of growth,
  because of the unfavorable comparison with the
  other Asia countries, especially the East Asian
  Tigers.

7

• A period of import tariff, export taxes,
  quantitative restrictions , approvals needed for
  60 of new FDI in the industrial sector.
• FDI averaged only 200M between 1985-1991.
• In 2004, net FDI inflow was about 7-8 USD bn. (
  China, 52 USD bn)
• A large percentage of the capital flows consisted
  of foreign aid, commercial borrowing and deposits
  of non resident Indians.
• Largely and intentionally isolated from world
  markets.

8

• Late eighties the govt. led by Rajiv Gandhi
  eased restrictions on capacity expansion for
  incumbents, removed price control and reduced
  corporate taxes.
• Phase of high growth with high fiscal deficit and
  worsening current account
• Collapse of soviet union a major trading
  partner, first Gulf war causing spike in oil
  prices led to major balance of payment crisis
  with the prospects of defaulting on its loan.
• Prime Minister Narasimha Rao with Finance
  Minister Manmohan Singh initiated the economic
  liberalization of 1991.
• Reforms did away with license Raj in investment,
  industrial and import licensing-ended many public
  monopolies, introduced automatic approvals of FDI
  in many sectors.

9
Agriculture

• India ranks second world wide in farm output.
• In 2007, accounted for 17 in GDP employing 60
  of the total workforce.
• After having growth rate of 2 for many years-
  now the growth rate is about 4.5.
• Two thirds of Indias workforce still earn their
  livelihood directly or indirectly through
  agriculture.
• High level of disguised unemployment.
• Despite improvements, average yield in India
  ranges from 30-50 of the highest average yield
  in the world.
• Major agricultural products include rice, wheat,
  oilseed, cotton jute, tea, sugarcane, potatoes,
  cattle, water buffalo, sheep goats, poultry and
  fish.
• India is the largest producer in the world of
  milk cashew nuts coconuts tea, gingerturmericand
  black pepper.It also has the world's largest
  cattle population (193 million).
• It is the second largest producer of wheat rice
  sugar groundnutand inland fishIt is the third
  largest producer of tobacco India accounts for
  10 of the world fruit production with first rank
  in the production of banana and sapota.

10
Industry

• India ranks 14th in the world in factory output.
• Industry accounts for 27.6 of the GDP and
  employs 17 of the work force.
• Manufacturing growth rate 8.4.
• high-skill sectors account for almost 40 percent
  of the manufacturing output of India.
• Textile manufacturing is the second largest
  source for employment after agriculture and
  accounts for 26 of manufacturing output
• One third of industrial labour force is engaged
  in simple household manufacturing only.
• Economic reforms led to more private sector
  participation, an expansion in the production of
  consumer goods and both domestic and foreign
  competition.

11
Services

• India is fifteenth in services output.
• With largest share in GDP of 55, it employs 23
  of workforce.
• The growth rate which was 4.5 in 1951-80
  increased to 7.5 in 1991-2000. Recent growth
  rate 10.7.
• Fastest growing services are business services,
  information technology enabled services, business
  process outsourcing contributing about one third
  of total output of services in 2000.
• Indias IT industry an important contributor to
  BOP, accounts for only about 1 of total GDP and
  1/50th of the total services.
• India leads the market in offshored back-office
  services, but as a manufacturing center it lags
  behind China, Thailand, and the rest of Asia.

12
External Sector
Exports 175.7 billion f.o.b (2008 est.)
Export goods petroleum products, textile goods, gems and jewelry, engineering goods, chemicals, leather manufactures
Main export partners US 15, the People's Republic of China 8.7, UAE 8.7, UK 4.4 (2007)
Imports 287.5 billion f.o.b. (2008 est.)
Import goods crude oil, machinery, gems, fertilizer, chemicals
Main import partners People's Republic of China 10.6, US 7.8, Germany 4.4, Singapore 4.4
13

• Almost stagnant export for the first 15 years
  after independence. Dominated by products like
  tea, jute and cotton manufacturers having
  generally inelastic demand.
• Since liberalization ex-im have become much broad
  based.
• Indias exports are consistently rising, covering
  about 80 of its imports.
• Merchandise trade of India about 31 of GDP in
  2007 (China 68)
• High technology exports as of total
  manufacturing exports are 5 in case of India and
  30 in case of China.
• FDI in India has reached 2 of GDP (China 3,
  2006), compared with 0.1 in 1990
• The top five countries in FDI inflows (2000-2007)
  are Mauritius (44),United States(9.4), UK( 8),
  Netherlands(6)and Singapore(5).

14
Sectoral Employment Share by Current Daily Status

• Industry Division
  1993-4
  2004-5
• Agriculture and allied activities
  61.03
  52.06
• Mining Quarrying
  0.78
  0.63
• Manufacturing
  11.10
  12.90
• Electricity, gas and water supply
  0.41
  0.35
• Construction
  3.63
  5.57
• Trade , hotels and restaurants
  8.26
  12.62
• Transport, Storage communication
  3.22 4.61
• Finance, insurance, real estate and
  1.08
  2.00
• business services

15
Employment Share Economically Active Adult
population ()
2004-2005

• 1993
  2005
• --------------------------------------------------
  ---------------------------------------------
• Agriculture 74.8
  68.5
• Labour
  34.4 30.3
• Cultivator
  39.3 37.3
• Farm regular
  1.1 0.9
• Non Farm Sector 25.2
  31.5
• Casual
  6.3
  7.3
• Regular
  7.0
  9.3
• Self employed
  11.9 14.9
• --------------------------------------------------
  ---------------------------------------------
• 100
  100
• Source NSSO, 62th Round

16
Structure of Employment
17
Growth of working class
18
Rural workers
Workers in the countryside have also increased in
numbers. There were 144 million rural workers in
2005-06. There is a high proportion of
casualisation in rural areas.
19
Urban workers

• There were nearly 63 million urban workers in
  2005-06. Proportion of regular workers is more
  among urban workers when compared to rural areas

20
Wages
Wage rates defer between rural and urban areas
and between males and females
21
Working age population

• A big majority of Indias population is in the
  working age group.
• Share of working age population (15-59) will
  increase from 58 in 2001 to 63 in 2011.
• In 2005-06, about 60 of the population was in
  the working age group.
• Of the working age group population, roughly 460
  million people were in the workforce in 2005-06.
• Of these about 206 million (45) were
  regular/casual workers.

22
Youth workers

• India has among the largest number of youth
  workers in the world.
• In 2005-06, in the 15-34 age group there were 390
  million youth (35 of population)
• Of these 40.4 were engaged in gainful activity
  i.e, nearly 160 million.
• Nearly half of them were workers.

23
Rate of growth of employment in Organized
Sector( per annum)

• 1983-1994
  1994-2005
• Public Sector 1.53
  -0.70
• Private Sector 0.44
  0.58
• Total Organized 1.20 -0.31
• Source Eleventh Plan Document.

24
Public-Private organized sector

• Total no. of public and private sector workers
  stagnated between 1991-2001 and slightly
  decreased in recent times.

25
Public sector workers
26
Private sector workers
27

• Is development inclusive?

28
Labour Market

• Growing employment but poor in qualitative terms
  with low regular employment, underemployment and
  mismatch between education and employment.
• A huge section of the working class lives in
  rural areas, is unskilled and condemned to low
  wages. In non-agriculture sector growth in
  employment is in informal sector.
• Even in the urban areas there is a high degree of
  casualisation, contract labour working in
  deplorable conditions with no security of work.
• Although regular employment has risen, its growth
  has been almost exclusively in the smaller, least
  productive enterprises.
• About 87 of manufacturing employment taking
  place in micro enterprises(lt10 persons) producing
  just a third of manufacturing output.

29

• Employment in firms with more than ten employees
  accounts for only around 3.75 per cent of total
  employment (one quarter of regular employment)
  and has been falling. Indeed, India has a much
  smaller proportion of employment in enterprises
  with ten or more employees than any OECD country.
  
• 70 of Indians(800million), lived on less than 20
  rupees( slightly less than C50 cents) per day
  with most working in informal sector with no
  social security. (2007 Report on National
  Commission for Enterprises in the unorganized
  sector)

30
Sex Ratio in Population with Rural-Urban break up
Year Sex Ratio Sex Ratio Sex Ratio
Year Rural Urban Total
1901 979 910 972
1911 975 872 964
1921 970 846 955
1931 966 838 950
1941 965 831 945
1951 965 860 946
1961 963 845 941
1971 949 858 930
1981 951 879 934
1991 938 894 927
2001 946 901 933
Source Office of the Registrar General,
India Sex Ratio 1901-91 (Total, Rural and Urban)
from Brief Analysis of PCA paper-2 of 1992 1961
Population from PCA 1961 1971 Population from
Social and Cultural Tables 1981 figures from
Series Part-II A(I), General Population Tables
Census of India 1981. Figures of 1991 (including
interpolated data for JK-1991 based on 2001
census) and 2001 from PCA census of India -2001
31
Trends in Gender Disparity in Literacy Rate
Year Male Female Male/Female Literacy rate disparity Slightly more than half of total women are literate. Male-Female LR disparity is on decline.
1961 40.4 15.3 0.45 Slightly more than half of total women are literate. Male-Female LR disparity is on decline.
1971 39.5 18.4 0.38 Slightly more than half of total women are literate. Male-Female LR disparity is on decline.
1981 56.3 29.7 0.35 Slightly more than half of total women are literate. Male-Female LR disparity is on decline.
1991 63.8 39.4 0.28 Slightly more than half of total women are literate. Male-Female LR disparity is on decline.
2001 75.8 54.1 0.21 Slightly more than half of total women are literate. Male-Female LR disparity is on decline.
Source Census of India various years
32
Area and Gender based Labor and Work Force
Participation Rate ()

• Labor force
  Work force
• participation rates
  participation rates
• 1993-94 2004-05
  1993-94 2004-05
• Rural male 53.4 53.1
  50.4 48.8
• Rural female 23.2 23.7
  21.9 21.6
• Urban male 53.2 56.1
  49.6 51.9
• Urban female 13.2 15.0
  12.0 13.3
• Source Economic Survey of India 2007-08

33
Area and Gender based Structure of Employment
2004-2005

• Particulars Rural
  Urban
• Male
  Female Male Female
• Labour
• Force 56 31
  57 15
• Self empl. 57 62
  42 44
• Regular
• Wage and
• Salaried 10 4
  42 40
• Unempl.
• Rate 3 2
  5 8
• Source NSSO 62 Round

34
Gender based Distribution of Occupation in Rural
India () 2004

• Sector
  Male
  Female
• --------------------------------------------------
  --------------------------------------------------
  ---
• Agriculture 54.7
  30.4
• Casual
  21.8
  15.5
• Cultivators
  31.8
  14.7
• Regular
  1.1
  0.2
• Non Farm 31.3
  7.7
• Casual
  9.6
  2.0
• Self empl.
  14.4
  4.1
• Regular
  7.3
  1.6
• --------------------------------------------------
  --------------------------------------------------
  ---------
• Total
  86.0
  38.1
• --------------------------------------------------
  --------------------------------------------------
  ---------
• Not working
  14.3
  62.0
• --------------------------------------------------
  --------------------------------------------------
  ---------
• Casual
  31.4
  17.5
• Self emp/cultivators 46.2
  18.8
• Regular
  8.4
  1.4

35
Share of women employment out of total employment
in organized sector in India
Year of women in Public sector of women in Private sector of women in Total
1995 13.4 20.2 15.4
2000 14.8 23.9 17.6
2001 14.9 24.2 17.8
2002 15.4 24.3 18.1
2003 15.6 24.5 18.4
2004 15.9 24.8 18.7
2005 16.2 24.8 18.9
Source Quarterly Employment Review, Directorate
General of Employment Training, Ministry of
Labor
36

• Women wage lower than men by 33-40 points.
  Women-men wage differential is 0.751.
• The gender based wage differential though has
  narrowed down with increase in education level.
  It is still high.
• Urban wage differential persists but narrower
  than in rural area.

37
INDIA AND CHINA

• 
  India China
• 2007
• GDP (current
• USbillion)
  1176.9
  3205.5
• GNP PC
• (current US)
  950
  2370.0
• GDP growth
• Annual
  9.1
  13
• Population
• growth rate
• (annual )
  1.3
  0.6
• Mobile and cellular subscription
• Per ooo population
  21
  42

38
Situating India and China in World Trade (2007)

• Particulars Unit
  China India
• Share in Merchandise
• Exports ()
  8.71 1.05
• Rank
  2
  26
• Imports ()
  6.70 1.52
• Rank
  3
  18
• Share in Commercial Services
• Exports ()
  3.63 2.74
• Rank
  7
  10
• Imports ()
  4.14 2.49
• Rank
  6
  13
• Source WTO- World Trade Statistics, April 2009

39
China India world Trade highlights 2007

• Particulars
  China
  India
• Exports of good services
• of GDP
  42
  21
• Imports of goods services 32
  24
• to GDP
  
  
• Trade per capita
• (US, 2005-07)
  1483 391
• Patents granted
  67948 4320

40
China- Merchandise Trade 2007

• Breakdown in economy's in total
  exports
  total imports
• By main commodity group (ITS)
• 
  ()
  
  ()
• 1.Agricultural products
  3.2
  6.8
  
• 2.Fuels and mining products
  3.4
  22.0
• 3.Manufactures
  93.2
  70.9
• By main destination
  By main origin
• 1 European Union (27)
  20.1 1. Japan
  14.0
• 2. United States
  19.1 2. European Union (27)
  11.6
• 3. Hong Kong, China
  15.1 3. Korea, Rep. of
  10.9
• 4. Japan
  8.4 4.
  Taipei,Chinese 10.6
• 5. Korea, Republic of
  4.6 5. China
  9.0

41
Indias- Merchandise Trade 2007

• Breakdown in economy's in total
  exports
  total imports
• --------------------------------------------------
  --------------------------------------------------
  -----------------------
• By main commodity group (ITS)
• 
  ()
  
  ()
• 1.Agricultural products
  11.0
  4.4
  
• 2.Fuels and mining products 24.3
  
  40.2
• 3.Manufactures
  63.6
  46.3
• By main destination
  By main origin
• 1 European Union (27)
  21.7 1. European Union (27)
  14.8
• 2. United States
  13.8 2. China
  11.2
• 3. United Arab Emirates
  9.9 3. Saudi Arabia
  7.6
• 4. China
  6.5 4. USA
  6.5
• 5. Singapore
  4.4 5. United
  Arab Emi. 5.4

42
Trade in Commercial Services-2007

• Breakdown in economy's total exports
  total imports
• 
  ()
  ()
• China
• 1. Transportation
  25.7 33.5
• 2. Travel
  30.6 23.0
• 3. Other commercial services 43.6
  43.5
• India
• 1. Transportation
  9.7 40.1
• 2. Travel
  12.1 11.3
• 3. Other commercial services 78.2
  48.6

43
Cross Country Comparison
44
Composition of Manufacturing Sector Across
Countries
45
Manufacturing Exports Cross Country Comparison
46
Levels of Manufactured Exports Across Countries
47
Size of Labor Force in Manufacturing Sector
48
Spending on R D as a percentage of GDP (2003)
49
HUMAN DEVELOPMENT INDICATORS-(2006)

• --------------------------------------------------
  --------------------------------------------------
  ------------------------
• Human Development Index
• ( Position among 179 countries)
  INDIA
  CHINA
• Particulars
  Rank Value Rank
  Value
• HDI
  132
  0.609 94 0.762
• Life expectancy at birth( yrs)
  127 64.1 69
  72.7
• Adult literacy rate ()
  118 65.2
  53 93
• Combined(priter)enrolment
  134 61 113
  68.7
• ratio

50
HUMAN POVERTY INDEX (HPI-1) -2006

• Particulars India
  China
• Rank
  Value() Rank
  Value()
• HPI-1 87
  28.5 35
  7.9
• Probability of
• Not surviving to
• Age 40 ( of
• cohort) 2000-05
  16.8
  6.8
• Adult Illiteracy Rate
• 1999-2001
  34.8
  7.8
• 
  
  contd.

51
HUMAN POVERTY INDEX (HPI-1) -2006

• Particulars
  India
  China
• 
  Rank Value()
  Rank Value()
• Children Under
• Weight for age
• ( aged under
• 6, 2005-6) 46
  
  7
• Population below
• Income Poverty line
• 1.25 a day
  41.6
  15.9
• 2 a day
  75.6
  36.3
• National poverty line
  28.6
  2.8
• HPI-1 rank minus
• income
• Poverty Rank -11
  
  -19

52
Gender Related Development Index (GDI)

• Particulars India
  
  China
• --------------------------------------------------
  --------------------------------------------------
  -
• GDI Rank Value
  of HDI Rank Value of
  HDI
• 116
  0.591 97.1 79
  0.760 99.8
• --------------------------------------------------
  --------------------------------------------------
  ---
• 
  Male Female
  Male Female
• Life Expectancy
• At birth (2006) 66.5
  97.1 71.0
  74.5
• Adult literate
• (1999-2006) 76.4
  53.4
  96.3 89.5
• Combined gross
• Enrol. Ratio ()
• 2006 63.3
  57.4
  68.9 68.5
• Estimated Earned
• Income (PPP US) 3698
  1185 5646
  3644

53
Gender Empowerment Measure (GEM) 2007

• Particulars
  India
  China
• GEM
  -
  Rank 72
• --------------------------------------------------
  --------------------------------------------------
  ------
• Ratio of estimated
• Female to male
• earnings
  0.32
  0.65
• --------------------------------------------------
  --------------------------------------------------
  ------
• to total
• Seats in parliament
• held by women 9.2
  
  21.3
• Female legislatures,
• Senior officials
• Managers
  -
  17
• Female professional
• And tech. workers -
  
  52

54
India-China comparative Business Scenario-2007

• Particulars
  India
  China
• --------------------------------------------------
  --------------------------------------------------
  ----------------------------------------
• (Rank out of 183 countries-2008)
• --------------------------------------------------
  --------------------------------------------------
  ----------------------------------------
• Corruption perception index 85
  
  72
• --------------------------------------------------
  --------------------------------------------------
  ---------------------------------------
• Procedure
  (no) duration cost ( GNP)
  Procd. Duration Cost
• Starting a business 13 30
  days 70.1
  14 40 days 7.5
• --------------------------------------------------
  --------------------------------------------------
  --------------------------------------

55
GLOBAL COMPETITIVENESS RANKING 2008-9 India and
China(Rank out of 134 countries)

• Pillars Components
  India
  China
• --------------------------------------------------
  --------------------------------------------------
  --------------------
• GCI Global Competitiveness Index
  50
  30
• --------------------------------------------------
  --------------------------------------------------
  --------------------
• Basic requirements
  80
  42
• 1 Institutions
  53
  56
• 2 Infrastructure
  72
  47
• 3 Macroeconomic stability
  109
  11
• 4 Health and primary education
  100
  50
• Efficiency Enhancer
  33
  40
• 5 Higher education and training
  63
  64
• Goods market efficiency
  47
  51
• Labour market efficiency
  89
  51
• Financial market sophistication
  34
  109
• Technological readiness
  69
  77
• Market Size
  5
  2
• Innovation and Sophistication
  factors 27
  32
• Business sophistication
  27
  43

56
Major Areas of Reforms Needed

• Labour market Stringent labour laws should be
  relaxed
• Business environment Lowering the barriers to
  entrepreneurship
• Ending
  reservation of products fro SSI
• Need
  for Bankruptcy law
• 
  Dispersion of tariff rates
• Easing
  of Service sector FDI restrictions
• More
  privatization of public sector enterprises.
• Financial sector More liberalization
• 
  Privatization of public sector banks
• Infrastructure Electricity reforms to be
  speeded up
• 
  transport More private sector involvement
• Public Finances Better targeting of
  subsidies, GST
• Education Higher public
  expenditure on primary and
• 
  education, Addressing financing of higher edu.
• India can learn from China in
• 
  Social and Physical Infrastructure
• Improving
  manufacturing sectors productivity

57
In Conclusion

• India and China non comparable
• India-- Democracy (messy)
• Highly diverse social
  structure
• Reforms reactionary in
  nature- a late starter
• Less integrated to
  Global market (including East Asia)
• Dissimilar trade
  pattern
• Lagging behind in FDI
  and infrastructure
• Weak link between
  economic development and social
• welfare at regional
  level compared to China.
• 
  

58
Differencing Relative strengths

• 
  
  India
  China
• 
  
  
• i) Agriculture
  v
• reforms
• ii) Industrial growth
  v
• iii) FDI
  v
• IV) Open to external
• trade
  v
• v) National market
  v
• vi) Service sector v
  v
• vii) Infrastructure -
  v
• viii) Capital efficiency v
• viii) Corporate governance v
• ix) Democratic accountability v
• x) Foreign portfolio capital v

59

• Two divergent development Paths
• India
  
  China
• Increasingly building ground up
  Top down approach
• Service sector led growth Manufacturing
  sector and foreign trade
• Private sector led growth State led
  modernization (late 1970s)
• (early nineties)
• Consumption driven
  Investment driven
• v) Knowledge based sector-labor
  Cheap- assembly line workers
• vi) Worlds back office
  Factory of the
  world

60

• India
  China
• Domestic Private Companies
  FDI inflow
• 
  State owned
  enterprises
• Young work force
  Aging workforce
• Cheaper labour
  Rural reform

61
Indias hope!!!!

• No Trade off to democracy for 2 higher growth!
• Accumulated diversity not assimilated.
• Both India and China have accepted the capitalist
  road to prosperity but capitalism is more
  comfortable in democracy which fosters
  entrepreneurs.
• Indias growth may be more enduring as people
  have scripted its growth whereas in China it is
  state crafted.
• India- A country with Potentials for sustaining
  development!!

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• Because the Indian state is inefficient,
  millions of entrepreneurs have stepped in to
  vacuum. When government schools fail, people
  start private schools in the slums, and the
  result is millions of slumdog millionaires .
• You cannot do this in China!!
• 
  Gurucharandas
• Times
  of India, 10 May 2009

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