India to outpace China's economy soon: But why will that happen in the first place??

I think this is an important factor for India to surpass China's economy...thanks to a young workforce and a brand of capitalism that outweighs its much derided democracy...

Also it has a long way to go before it is as rich as China, as the Chinese economy is four times bigger, but India's growth rate could overtake China's by 2013 say many economists.  Some economists also think that India will grow faster than any other large country over the next 25 years. Rapid growth in a country of 1.2 billion people is exciting...India is now blessed with a young and growing workforce. Its dependency ratio I mean the proportion of children and old people to working-age adults is one of the best in the world and will remain so for a generation....

The One child family is the undoing of china, the average of china is above 60, as time passes the young work force will not be available to china, where as india followed two child family norm and the supply of young work force is ensured

Recent issue of Economist hit the right note when it said that the India as a country may be lacking in some fields but its private companies are strong. Despite its many shortfalls, India is doing extremely well. Its economy is expected to expand by 8.5% this year. It is given that India has a long way to go before it is as rich as China (Chinese economy is four times bigger) However, India’s growth rate could overtake China’s by due tio its, 2013, if not before.  Some economists predict that India will grow faster than any other large country over the next 25 years. Economist adds that Rapid growth in a country of 1.2 billion people is exciting, to put it mildly.

Why? Here Economist cites two reasons; Demography- China’s shrinking workforce and India’s much-derided democracy. Besides, India’s individualistic brand of capitalism may also be more robust than China’s state-directed sort. Chinese firms prosper under wise government, but bad rulers can cause far more damage in China than in India, because their powers are so much greater. Many of the country’s dynamic entrepreneurs waste hours each day stuck in traffic. Their firms are hobbled by the costs of building their own infrastructure: backup generators, water-treatment plants and fleets of buses to ferry staff to work. India’s problems are painfully visible. The roads are atrocious. Public transport is a disgrace. But, India’s literacy rate is rising, thanks in part to a surge in cheap private schools for the poor.  The Indian government recognises, the need to tackle the infrastructure crisis, and is getting better at persuading private firms to stump up the capital. Given the choice between doing business in China or India, most foreign investors would probably pick China. The market is bigger, the government easier to deal with, and if your supply chain for manufactured goods does not pass through China your shareholders will demand to know why. But as the global economy becomes more knowledge-intensive, India’s advantage will grow. That is something to ponder while stuck in the Delhi traffic.