Saturday, April 4, 2009

Western media incites comparison between China and India

By China Watcher

Financial Times UK at an interview session asked the Indian Prime Minister the divisive question on the rate of economic development between China and India? Being drawn into a corner and obviously, losing face, due to wide gap in economic progress between the two countries he stated that the Indian economy is more durable on in other words, lasting.

In the past, I always hold to the opinion that the Indian economy will grow in its own right to be a large economy within the Top 5 in due course, perhaps, in 15 years. The Chinese economy is more broad-based and is largely export driven. Infrastructural development is impressive if we observe the number of bridges, roads, highways, railways and dams just over the last 15 years. The Chinese are also slowly catching up on its technological prowess in IT (lately more into software) and biotechnology. In terms of enhancement of management expertise, it had joint leadership forums with certain US educational institute and also, with sincere and slightly better developed Asian countries like Singapore and Malaysia. Further, it can also tap into the labor strength of its SAR, Hong Kong.

Presently, the Chinese economy is clearly more diversified than before and I do not understand what the Indian PM had in mind when he told the media Indian economy is more durable. The economic bubble created by the hypnotic frenzy on its Shanghai Stock Exchange has also come down to a more reasonable level and the prices of its properties are now within reasonable range. I just cannot comprehend the statement.

Anyway, the educated elite in India have been passionately comparing the success on India and China in every field/aspect as I pointed out in my earlier article. Why compared with China alone and not benchmarked against UK, Germany, Japan or the US? Where is the Asian solidarity which had been the driving force behind the non-aligned movement? Maybe it is the intense rivalry which goes back to the 1960s in which both the countries economic development are on par but China has surged beyond the level for the Indians to catch up – 4 times of GDP?

If I am the Indian PM, I would have answered the British media in a more thoughtful way, “well, both the economies are doing well and I am sure in the future we will both have our niche areas and one thing which is certain, both our economies will be among the top in the world nudging out all the European economies”.

That would be a good reply to the nosy British press.

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