How India can overtake China in economic growth?

So to overtake China, India has to grow at 10.0\% per year for 12 years continuously. This task can be simplified in two sentences: (1) Raise total investment as a ratio GDP to 36\% from present 29\%. (2) Then, improve efficiency in the use of capital by lowering incremental capital ratio from present 4.0 to 3.6.

How does China affect Indian economy?

India’s total trade with China touched $90.38 billion during the January-September period, and is likely to cross $100 billion by the end of the year. Some of India’s major imports from China include smartphones and automobile components, telecom equipment, active pharmaceutical ingredients, and other chemicals.

How does China economy compare to Indian economy?

“In nominal terms, Chinese GDP is at $14.9 trillion while India is at $2.6 trillion. Expressed in comparable PPP terms, China is at $24.2 trillion while India is at $8.7 trillion.

Does India depend on China?

China has the largest share in India’s imports — more than 18 per cent in April-September 2020. “Furthermore, by way of identifying tariff lines where India is critically dependent on one country for its imports, the same could become the key lines for setting up and expanding domestic production capacity,” it added.

How does India’s economy compare to China?

India invests about 30 percent of its GDP, compared with about 50 percent in China. Manufacturing is about 20 percent of the Indian economy; it is about 30 percent of China’s. China has arguably the best physical infrastructure outside the Western world. India’s looks more like the poor country that it still is.

Why is the development of China and India so important?

Therefore, even if a large slice of their population remains in poverty, the economies of China and India are completely integrated into the world markets and financial exchanges, making the development of these two key countries important to maintaining a peaceful international scene during the 21st Century.

Can China and India sustain sustainable economic growth?

Following the financial crisis of 2008 and the difficulty faced by the main world powers in maintaining sustainable economic growth, China and India are among the few economies to record a positive rate of growth.

How can India compete with China in the future?

China has arguably the best physical infrastructure outside the Western world. India’s looks more like the poor country that it still is. But this is a real opportunity for India. Increase investment. Improve infrastructure. Grow economic output.