Just been reading a review of a new book which we thought we would like to share with you. It is called The Amazing Race Between China's Hare and India's Tortoise by Raghav Bahi.
Despite their close proximity India and China are poles apart in terms of their culture. Both are deeply suspicious of each other. Even today with international travel so easy, not much travel is done between these two countries.
China has grown at around an amazing 10 per year for 30 years and its economy is now four times the size of India's. India, however, although a slow starter is now catching up just like the story in the title. India did not have a political structure like China to push through fast growth. India is catching up no; this year it will grow 8.5 per cent which is not far off China's growth rate. Raghav argues that India's growth is more sustainable; entrepreneurs are more global in their outlook and it's growth is more balanced with consumption playing a bigger role and exports a smaller one.
Another major factor is that the demographic outlook is much more favourable to India. China is in the midst of ageing partly as a consequence of of the one child policy (something which would not have been possible in India). In India the dependency ratio is on a downward trend.
All very interesting we think.