I was reading the Economist and was interested in this article on India. The media constantly talks about China being the next superpower, just lagging behind the US. Why have we neglected India? This second largest emerging market is doing really well – growing 9.2%, just 1.2% behind China. The government predicts that they can sustain a growth of 9% in the coming years.
It is good news – more investors, more job opportunities and more people out of poverty. However, why is India ‘overheating’? Inflation has risen to 6-7%, whereas that of China is just 2.8%. Factories are operating at maximum capacity and the country is currently in deficit. Apparently the domestic output from industries in India cannot afford to meet the rising demand. How to we curb this?
Well, coming back to my previous point as discussed in the interblog debate with Waq, I still stand to my point that control in population expansion is vital to deal with problems that the world is facing. Now, acording to the article in the Economist, “Population growth by itself does not add to prosperity, unless young people are educated and new jobs are created”.
“India’s demographic structure is indeed starting to look more like East Asia when its growth took off.” So, control of the demographic is important to sustain and help the growth of a large country like India.
This week’s Economist has a few good articles. So, do check it out!
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viknesh jayapalen
/ 8 February 2007well i found this really interesting online debate some while about india vs. china in asia. it initially started of as a very civilized debate with strong arguments put forth, but eventually started turning ugly with comments from lots of racists people. but, as you rightly put india is becoming a force to reckon, and many believe that it silently possess the best military force in Asia too. India has just recently changed a number of policies which have allowed in more foreign investors as well, removing the traditional protection that local entrepreneurs benefited from in the past. Certainly interesting to see India in a few years from now. However, I feel they lack the resolve and confidence that great nations should have, especially on issues regarding religion, moral issues, political debates, etc.