India’s Chinese Dream

China and India have both emerged as global economic superpowers in recent years, with China leading the way. But, with Chinese growth slowing amid far-reaching structural change, will the economic-reform efforts of India’s new prime minister, Narendra Modi, enable the country to catch up?

SEOUL – In recent years, China and India have both emerged as global economic superpowers, with China leading the way. But, with Chinese growth slowing and the need for structural change becoming increasingly acute, will the economic-reform efforts of India’s new prime minister, Narendra Modi, enable the country to catch up?

Since the 1980s, China has experienced unprecedented economic growth, fueled by abundant low-cost labor, high saving and investment rates, substantial market reforms, outward-oriented policies, and prudent macroeconomic management. Its leaders now hope to achieve high-income status by developing more technologically sophisticated industries.

India’s economic performance has been less remarkable. Economic growth began to accelerate dramatically in the early 1990s, owing to trade liberalization and other economic reforms. Then reforms stalled, the fiscal and current-account deficits soared, and annual GDP growth fell to 4-5%.

To continue reading, please log in or enter your email address.

To continue reading, please log in or register now. After entering your email, you'll have access to two free articles every month. For unlimited access to Project Syndicate, subscribe now.

required

By proceeding, you are agreeing to our Terms and Conditions.

Log in

http://prosyn.org/pgm65M4;

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.