India to inch closer to China in growth rate: World Bank

[SwatCat]

India to inch closer to China in growth rate: World Bank​

WASHINGTON: India's growth is expected to inch closer to that of China in near future, a top World Bank economist said here on Tuesday.
The World Bank had yesterday released its latest issue of Global Economic Prospects 2013, in which the economies of developing countries like India, China and Brazil are projected to be recovering and higher growth rate.
The World Bank expects that by 2015, the growth rate of China would be 7.9 per cent and that of India 7 per cent, World Bank Chief Economist Kaushik Basu told reporters during a conference call.

"We do expect India to inch closer to China and for a very, very good reason--not an analysis of what's happened over the last one year or two years, but a bit of a sweep of history," he said.
While the growth of the world economy growth is projected to inch up from 2.3 per cent in 2012 to 2.4 per cent in 2013, with the high-income countries remaining at the same level of growth of 1.3 per cent in both 2012 and 2013, it is the emerging markets like India, China and Brazil that would show significant signs of recovery.
"Growth in Brazil had gone down quite sharply in 2012 of 0.9. We at the World Bank are expecting Brazil to make a recovery to 3.
4 per cent in 2013. We are expecting recovery in the case of China from 7.9 per cent growth in 2012 to 8.4 per cent in 2013.
"We are expecting a recovery in India from 5.1 per cent growth in 2012 to 6.1 per cent growth in 2013," Basu said. (MORE) LKJ DKR

India to inch closer to China in growth rate: World Bank - The Times of India

 

[Chinese-Dragon]

Yes, that will most likely happen.

As our economy gets bigger it will be harder and harder for us to maintain a high percentage growth rate, since we'll have to add a LOT more to our GDP just to come up with the same percentage growth figure.

I will be very happy if we can maintain at least 7% growth for the next decade.

India's job now is to break out of the current infrastructure bottle-neck, in order to prepare the ground for possible double-digit growth in the future.

 

[Contrarian]

India's job now is to break out of the current infrastructure bottle-neck, in order to prepare the ground for possible double-digit growth in the future.

It is proving to be quite hard.

 

[Sergi]

Yes, that will most likely happen.

As our economy gets bigger it will be harder and harder for us to maintain a high percentage growth rate, since we'll have to add a LOT more to our GDP just to come up with the same percentage growth figure.

I will be very happy if we can maintain at least 7% growth for the next decade.

India's job now is to break out of the current infrastructure bottle-neck, in order to prepare the ground for possible double-digit growth in the future.

Double digit growth is always a dream of every growing economy. But it would be better to have a long sustained single digit growth ( around 8-9). It keeps the momentum going for long time.

BTW CD Spydee said " The bigger they are harder they fall "
Sorry couldnt resist to troll

 

[Ayush]

true.it is gonna happen.

 

[Chinese-Dragon]

It is proving to be quite hard.

The thing about infrastructure, is that it is often unprofitable in the short term. Which scares away a lot of private companies.

There needs to be a concerted effort at all levels of government towards building essential infrastructure.

BTW CD Spydee said " The bigger they are harder they fall "
Sorry couldnt resist to troll

We have already been falling for most of the past few centuries. It's getting tiring, falling all the time.

It is time for a momentum change.

 

[Yeti]

Double digit growth is unsustainable and China is a known currency manipulator, a nice growth of 8 or 9% is fine for India.

 

[RazorMC]

India's growth rate has been impressive over the past 2 decades esp.

The key is sustainable growth like @Sergi said. What plans does India have to improve infrastructure and to ease some of the red-tape?

 

[Yeti]

India's growth rate has been impressive over the past 2 decades esp.

The key is sustainable growth like @Sergi said. What plans does India have to improve infrastructure and to ease some of the red-tape?

Infrastructure is improving all the time just take a look at the India development thread to see, we have big plans to spend over $1 trillion in the next 5-7 years and there is huge projects like the delhi mumbai industrial corridor with the help of Japan that will change the face of India and increase manufacturing industry.

In regards to red-tape that is a big challenge to open a business in India we are very poor in this and rank low compared to other countries.

 

[trident2010]

As mentioned in earlier post that as China's economy grows, it will be difficult to keep it at higher % growth rate. The key for India is to sustain a growth rate of 7-9% for at east 10-15 years.

Government should not only focus to develop a world class infrastructure in A class cities only but also in B and C class cities too. Most of the manufacturing in India is done in class B and C cities and therefore if we want to improve our manufacturing base then we have to develop our B and C class cities too.

 

[BigDaddyWatch]

The problem that India has is that India simply doesn't produce enough industrial goods or resources for the growing Indian population both in terms of size and affluence. And there for India has a ever larger trade deficit with the rest of the world. This has led to the depreciation of India's currency and that in turn has led to even higher trade deficits and inflation for India. India like to see it self as less dependent on the outside world then China because she's less dependent on trade then China. But because of India's perpetual current account deficits India is actually more dependent then China on international capital flows. India needs large amount of capital inflow to make up the difference for its current account deficits. And its because of the slowdown in that capital inflow into India that India's currency the rupee has fallen in value over the past few years. Any crisis that disrupt capital flows around the world will hit India much harder and faster then China. India has the same problem as the US with its twin deficit, that is in trade and the government budget. But India has a much higher growth rate and savings rate then the US so India for now is in a much better position compared to America. However if India can't get a grip on its structual economic problems it will face a massive crash in the future.

 

[INDIC]

The problem that India has is that India simply doesn't produce enough industrial goods or resources for the growing Indian population both in terms of size and affluence. And there for India has a ever larger trade deficit with the rest of the world. This has led to the depreciation of India's currency and that in turn has led to even higher trade deficits and inflation for India. India like to see it self as less dependent on the outside world then China because she's less dependent on trade then China. But because of India's perpetual current account deficits India is actually more dependent then China on international capital flows. India needs large amount of capital inflow to make up the difference for its current account deficits. And its because of the slowdown in that capital inflow into India that India's currency the rupee has fallen in value over the past few years. Any crisis that disrupt capital flows around the world will hit India much harder and faster then China. India has the same problem as the US with its twin deficit, that is in trade and the government budget. But India has a much higher growth rate and savings rate then the US so India for now is in a much better position compared to America. However if India can't get a grip on its structual economic problems it will face a massive crash in the future.

I saw a documentary by Journeyman which was claiming constructing ghost cities is one of the main reasons for high GDP growth in China, then they showed world's largest shopping Mall in China which was abandoned.

Right now, China is looking towards HSR to maintain high GDP growth.

 

[Chinese-Dragon]

Double digit growth is unsustainable and China is a known currency manipulator, a nice growth of 8 or 9% is fine for India.

A saw a documentary by Journeyman which was claiming constructing ghost cities is one of the main reasons for high GDP growth in China, then they showed world's largest shopping Mall in China which was abandoned.

Right now, China is looking towards HSR to maintain high GDP growth.

China-bashing already started in the first page.

 

[Yeti]

The problem that India has is that India simply doesn't produce enough industrial goods or resources for the growing Indian population both in terms of size and affluence. And there for India has a ever larger trade deficit with the rest of the world. This has led to the depreciation of India's currency and that in turn has led to even higher trade deficits and inflation for India. India like to see it self as less dependent on the outside world then China because she's less dependent on trade then China. But because of India's perpetual current account deficits India is actually more dependent then China on international capital flows. India needs large amount of capital inflow to make up the difference for its current account deficits. And its because of the slowdown in that capital inflow into India that India's currency the rupee has fallen in value over the past few years. Any crisis that disrupt capital flows around the world will hit India much harder and faster then China. India has the same problem as the US with its twin deficit, that is in trade and the government budget. But India has a much higher growth rate and savings rate then the US so India for now is in a much better position compared to America. However if India can't get a grip on its structual economic problems it will face a massive crash in the future.

We are working on that the delhi mumbai industrial corridor will see new industrial SEZ's being setup to increase our exports and promote manufacturing.

 

[dearone4u_22]

The problem that India has is that India simply doesn't produce enough industrial goods or resources for the growing Indian population both in terms of size and affluence. And there for India has a ever larger trade deficit with the rest of the world. This has led to the depreciation of India's currency and that in turn has led to even higher trade deficits and inflation for India. India like to see it self as less dependent on the outside world then China because she's less dependent on trade then China. But because of India's perpetual current account deficits India is actually more dependent then China on international capital flows. India needs large amount of capital inflow to make up the difference for its current account deficits. And its because of the slowdown in that capital inflow into India that India's currency the rupee has fallen in value over the past few years. Any crisis that disrupt capital flows around the world will hit India much harder and faster then China. India has the same problem as the US with its twin deficit, that is in trade and the government budget. But India has a much higher growth rate and savings rate then the US so India for now is in a much better position compared to America. However if India can't get a grip on its structual economic problems it will face a massive crash in the future.

I accept ur point India has large trade deficit with world....

Now can u name me top 2 Indian imports

1) Crude oil.....constitute 35% of it ...can't help it need energy ...Thats why India is giving big push to Alternative Energy Sources

2)Gold and jewellery ...Constitute 20% of it ........What do think happens to gold that All Indians buy ..its gets vanshished in Smoke like crude oil..it Appreciate in Value....So its in Sort of Investment

But still GoI feel its a burden hence to reduce Local gold demand it increased duty on Imported gold from 4 % to 6%

But still GOld fever in India continues.....And gold keeps hitting new highs everyday

Gold is the country's second-largest imported commodity by value, behind crude oil. The country imported about $60 billion worth of gold in the fiscal year through March 2012, compared with about $40 billion in the previous year.

3)Third Biggest Imports is Nuclear technology and boilers and related Machinery which constitute 7% of import which will help to reduce the import number one


THis three constitute 62% of all import

India's Gold Imports Jump - WSJ.com

Although CAD is high ...Our Econmist will take care of it.....its going toward building a better nation ....

steps taken by GoI to increase Manufacturing jobs

India now has a progressive manufacturing policy, let?s create 100 million jobs by 2025 - Economic Times

India Proposes Curbs on Tech Imports - WSJ.com





Source of Above import figure

Top Export Import Products of India | Major Import Export Items