China has a 20-year lead time. Reforms in China started in 1976-78, whereas in India, they started in 1991 - what I call India's Second Independence.
Now, in China, the government runs like a corporation - you can call it a corporate state. India is a democracy - its policies are based on democratic viewpoints.
The speed at which India makes its decisions is slower - it comes only after several rounds of debates. China doesn't allow that, and thus things happen at a faster pace. For instance, infrastructure development in China has been much faster than in India.
But my analysis is that the Chinese economy will start plateauing by 2035, probably sooner. The main reason is that by then China will become very affluent, and its population will be ageing.
Its growth will start slowing down, just as it happened in the case of Japan, Western Europe or even the US. Checking the population growth rate - the one-child policy that it put in place - is going to come in the way.
Our forecast is, that if you extrapolate, presuming things will work out, between now and 2035, India will be able to build infrastructure - which can help add 1.5 to 2 per cent additional GDP, with no inflation.
Infrastructure investment has always been non-inflationary.
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