Chinese Miracle- Can India imitate it.

 If the current trend continues India may pip the dragon in growth rate by the last quarter. China’s double digit GDP in the past was mostly export driven.  Setting up international franchises of Chinese industries is still in the budding stage. Institutionalized corruption is rampant in China. I read an article about adulterated baby food, which resulted in the death of many children and Chinese food products being banned in many countries.  Many of china’s exports, especially low priced electronic items are not safe.  Chinese legal system doesn’t favour intellectual and physical property rights. China had a free flow of foreign direct investment and maintained an artificially undervalued currency to favour exports. But with the economic slow down things changed and china’s growth started to glide. India with around 6000 listed companies compared to china’s 2000, conditions here are conducive.

But beating dragon is no easy task. The Chinese government have always shown better management skills than their Indian counterparts and have far from better entrepreneurial talent. We can’t repose the trend projection and expect China to remain idle. Definitely we have the ball in our hands. Turing the prediction into a reality will be a true test of character for our leaders.  

I expect the coming budget to contribute to this cause by unveiling economic prudence rather than political gimmicks.

But we can’t always deny the win win strategy as the major strengths of India and china are complementary rather than competing.  

Being an Indian I relish the very thought of  Elephant outperforming  Dragon, chak de India… but let us see

Yes, we can imitate China, China has the largest geological area, with vast natural resources this is the biggest reason of their growth inspite of fact it has largest human count also. India on the verge has less geographical area with good number of natural resourses and almost similar head count to China is running equally in the race.

The biggest resource is the english speaking population and IT talent. The years are not far away when India will also grow in double digits imitating China.