Chennai:
India could overtake China economically as the Communist country has
exhausted its resources and now is working on a qualitative growth,
according to an expert.
Delivering a lecture on Economic Transformation of China at Madras
Institute of Development Studies here on Thursday, Dr Jacob Kurien,
Resident Professor of International Economics Nanjing University said
that India has the ability overtake China as the current government
has a majority in the parliament and could expedite all the
infrastructure projects provided there is no legal tangle.
He said India’s GDP would grow as its resources are yet to be tapped
while in China’s case it has exhausted its resources.
He said that China’s growth was more of a quantitative one. “The total
productivity has declined in China as officials focused more on
quantity rather than quality,” Kurien said.
“The earlier policy focused on rewarding growth quantitatively.
Officials were keen to show the growth rate at any cost. This has
affected the growth qualitatively and given rise to corruption forcing
the foreign markets to tread cautiously in China,” Kurien said.
Now China is addressing this issue and is focusing on qualitative
growth. Some of the measures include shutting down polluting units.
“The pollution in China was such that top CEOs were not keen to stay
in the industrial cities,” he said.
He also said that China has also shut down many of its companies that
were not remunerative. The communist country is now focusing on
consumption driven growth rate, he said.
Interestingly, the quantitative growth of China has also resulted in a
huge urban-rural divide. “It is one of the largest in the world,” said
Kurien.
However, he said unlike most of the Asian economies, the saving rate
of China is above 50 per cent. Interestingly, the communist nation
instead of rewarding the depositors taxes them and the money is given
to state owned companies.
He said that the growth of China was focused only on the coastal
region and now the country is looking to develop its inland region. He
said that the infrastructure in China is above its capacity. “This has
resulted in internal debt but then the country would clear it as it
has huge savings,” said Kurien.
The focus of the workforce is to make money as they don’t have the
right to own land. “The land is leased out to the workforce and when
the projects are to be undertaken the residents are shifted to other
place. They are connected to the high growth regions through high
speed rails,” he said.
India could overtake China economically as the Communist country has
exhausted its resources and now is working on a qualitative growth,
according to an expert.
Delivering a lecture on Economic Transformation of China at Madras
Institute of Development Studies here on Thursday, Dr Jacob Kurien,
Resident Professor of International Economics Nanjing University said
that India has the ability overtake China as the current government
has a majority in the parliament and could expedite all the
infrastructure projects provided there is no legal tangle.
He said India’s GDP would grow as its resources are yet to be tapped
while in China’s case it has exhausted its resources.
He said that China’s growth was more of a quantitative one. “The total
productivity has declined in China as officials focused more on
quantity rather than quality,” Kurien said.
“The earlier policy focused on rewarding growth quantitatively.
Officials were keen to show the growth rate at any cost. This has
affected the growth qualitatively and given rise to corruption forcing
the foreign markets to tread cautiously in China,” Kurien said.
Now China is addressing this issue and is focusing on qualitative
growth. Some of the measures include shutting down polluting units.
“The pollution in China was such that top CEOs were not keen to stay
in the industrial cities,” he said.
He also said that China has also shut down many of its companies that
were not remunerative. The communist country is now focusing on
consumption driven growth rate, he said.
Interestingly, the quantitative growth of China has also resulted in a
huge urban-rural divide. “It is one of the largest in the world,” said
Kurien.
However, he said unlike most of the Asian economies, the saving rate
of China is above 50 per cent. Interestingly, the communist nation
instead of rewarding the depositors taxes them and the money is given
to state owned companies.
He said that the growth of China was focused only on the coastal
region and now the country is looking to develop its inland region. He
said that the infrastructure in China is above its capacity. “This has
resulted in internal debt but then the country would clear it as it
has huge savings,” said Kurien.
The focus of the workforce is to make money as they don’t have the
right to own land. “The land is leased out to the workforce and when
the projects are to be undertaken the residents are shifted to other
place. They are connected to the high growth regions through high
speed rails,” he said.
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