- News>
- Economy
India can overtake China as an economic power: Study
New Delhi, July 13: India can overtake China as an economic power despite losing on foreign investment front as New Delhi`s reliance on its own resources will ensure more sustainable progress to enable it to surpass Beijing, says a study.
New Delhi, July 13: India can overtake China as an economic power despite losing on foreign investment front as New Delhi's reliance on its own resources will ensure more
sustainable progress to enable it to surpass Beijing, says a study.
"India is not outperforming china overall, but it is
doing better in certain key areas and that success may enable it to catch up with and perhaps even overtake china," Yasheng Huang, associate professor at Sloan School of Management at Massachusetts Institute of Technology, and Tarun Khanna,Professor at Harvard Business School have said in a study in the recent issue of foreign policy.
"Indeed, by relying primarily on organic growth, India is making a fuller use of its resources and has chosen a path that may well deliver more sustainable progress than China's FDI-driven approach," they said. "Can India surpass China was no longer a silly question," they said ..If it turns out that India has indeed made a wiser bet, the implications for China's future growth and for how policy experts think about economic development generally could be enormous".
Noting that the Chinese FDI was more its diaspora generated, they said "in the process, India has managed to spawn a number of companies that now compete internationally with Europe and the United States".
Drawing a comparison between the two Chinese provinces of Zhejiang and Jiangsu which were at similar levels of economic development, they said while Zhejiang laid more emphasis on indigenous entrepreneurs and organic development while Jiangsu relied largely on FDI, the former was more prosperous after 20 years. Bureau Report
"Indeed, by relying primarily on organic growth, India is making a fuller use of its resources and has chosen a path that may well deliver more sustainable progress than China's FDI-driven approach," they said. "Can India surpass China was no longer a silly question," they said ..If it turns out that India has indeed made a wiser bet, the implications for China's future growth and for how policy experts think about economic development generally could be enormous".
Noting that the Chinese FDI was more its diaspora generated, they said "in the process, India has managed to spawn a number of companies that now compete internationally with Europe and the United States".
Drawing a comparison between the two Chinese provinces of Zhejiang and Jiangsu which were at similar levels of economic development, they said while Zhejiang laid more emphasis on indigenous entrepreneurs and organic development while Jiangsu relied largely on FDI, the former was more prosperous after 20 years. Bureau Report