India, China growth race 'silly', says Nobel winner

[jdme]

How "freefall" is "freefall"? We had 25% inflation in the late 80's due to Deng's suicidal inflation policy... now you know why Tiananmen occured. Is that freefall enough?

Deng explicitly said that our method is also in reaction to events. He even called it "crossing the river by feeling stones". Everything is done in reaction; even the 5 year plans are just used to fix the mistakes of the previous 5 year plan.

So what made India slower than China?

Next time, try reading the post.

 

[below_freezing]

Rupee losing 50% of value, shouldn't that increase exports? That's the theory of white Americans right? Less valuable currency = more exports? Laughable isn't it?

I don't think it is merely a corrupt government problem. Our government in the 80's and 90's was pretty damn corrupt too.

 

[Jade]

It was not PCI, it was total GDP.

It's the momentum that matters? Yes, that is the entire reason that India was unable to catch up with China. Growth rates.

And India's growth rates are currently slowing down to around 7%.

Where did you got this figures of 7%? As far as UNCTAD is concerned, India's growth rate is projected to be 8.1% this year aganist the Chinese growth rate of 9.4%. Remember the year is almost ending and the figures should be realistic

 

[JustForFun]

your country's gdp/capita was not that much great 10-15 years ago,if you remember

Fact are:
China's gdp is 3.5 India's gdp.
China's population is 1.33/1.16=1.15 India's population.
India's population growth is 1,3%.
India's gdp growth is 8%

So for India to reach China's gdp/capita it takes Log(3.5/1.15)/Log(1.08/1.013)=17.37 years.
If the gdp growth drops to 7% on average, then it will take 20.3 years to reach the current gdp/capita of China.

ofcourse all those numbers are worthless if the dollar exchange rate takes a nosedive.

 

[jdme]

Rupee losing 50% of value, shouldn't that increase exports? That's the theory of white Americans right? Less valuable currency = more exports? Laughable isn't it?

I don't think it is merely a corrupt government problem. Our government in the 80's and 90's was pretty damn corrupt too.

India had virtually NO export. It was a close economy.

 

[Mech]

Before 91 India did not allow foreign companies to invest on Indian soil. Almost all sectors of growth such as medicine, manufacturing, telecommunications, etc were all controlled by the government. NEP was introduced by manmohan singh which virtually saved all of India from an economic meltdown in the 90's. Two decades later, we've grown so much and have come so far.

 

[JustForFun]

Rupee losing 50% of value, shouldn't that increase exports? That's the theory of white Americans right? Less valuable currency = more exports? Laughable isn't it?

Purely theoreticly it is not laughable. Because if your production costs are more or less the same in local currency then on the world market your products become cheaper than that of the competition. Thus you are probably going to sell more.

Problem is that this theory is b.s. because a drop in value would cause inflation to go up, therefor the wages are going up. Resources are getting more expensive (think oil). In the end your products are hardly cheaper than the competitors, only the savings of the population is worth halve it used to be.

This theory was ok when the world used to be as big as the universe, but not anymore in the global village.