A new survey point fingers to this possibility. Indian government has given itself four years’ time to surpass China in growth rate and become the world’s fastest growing economy. This fact was made public in a government report tabled yesterday, a day ahead of the presentation of Union Budget.
Finance Minister Pranab Mukherjee presented the annual Economic Survey report in parliament. The report said, “It is entirely possible for India to move into the rarefied domain of double-digit growth and even attempt to don the mantle of the fastest-growing economy in the world within the next four years.”
According to the report, India’s Q3 growth rate over the decade is 7.1%, while China’s is 9.1%. The report says that it is very much within India’s capability to grow at a pace beyond 9% as early as 2011-12. One of the prime factors taken into account for this forecast is the high savings rate of the country. India’s savings rate is 32.5% of GDP, while rates for other comparable Asian economies are Malaysia (38%), South Korea (30%) and Japan (28%).
India’s young working population contributes in no small way to this. With the country scheduled to add 220 million more to this group by 2030, it will only entice foreign investors and help in the growth momentum. The savings rate for the country may touch 40% of GDP by 2015.
The amazing growth of the services sector and good performance of Indian companies in the global scene may also contribute to this. Another factor that is prompting India to propel its growth rate is the need to raise its per-capita output. Now, it stands at half of that of China’s.
The report also suggested fiscal consolidation as the need of the hour to tackle spiralling inflation.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
If India doesn’t surpass China’s GDP growth this year (2010) then it probably never will, because China is actually trying to slow down its growth this year as they don’t want to overheat their economy. I think the slogan for China this year is: “Short term pain, Long term gain”. However despite efforts by the Chinese government to slow economic growth to more sustainable levels, China’s economy is still growing pretty fast, so if India can’t do it this year despite China handicapping itself then good luck trying to do it when China eventually loosens its hold on its economy once again.
India has to learn to be proud, if you are doing the best you can, you should be very proud of yourself.
If you admire others, you will learn to be like them, you may even end up doing better.
But one must never be arrogant, if you are arrogant, you already think you are already better than others, you will never improve if you are arrogant.
Be proud, very proud, but never arrogant!
Economic development must not be a contest to see who has the fastest growth. Too much growth or growing too fast has many side effects such as inflation and overheating. A country must look for stable and balanced growth. A country should look for steady improvement over long period of time not uncontrolled growth.