Bcoz we are left behind west developed countries at least 2 decades. We need catch up with a high speed way. After that we can do what you said.
I dont deny the possiblity of this century's belong to india, but the same question to you, if india has the possiblility to growth a lot, then what is stopping china, japan, US, brazil and the other nation from being so? And you can say this century possiblly belongs to india, but not definitely, the other nations has the same possibilities.
Ok So here goes the analysis of the Nobel Prize winner:
Point 1:
"China's share of global GDP -- 40 percent -- willdwarf that of the United States (14 percent) and the European Union (5 percent)30 years from now. This is what economic hegemony will look like"
If China's share is 40% and ~20% for the EU AND US, where is the room for growth for the RoW - Not just India but the African countries with all the natural resources that they have? (Flaw One - YES READ IT RIGHT THAT IS A FLAW) - The assumption of this guy here is that other countries will NOT GROW AT ALL!
Point 2:
The first essential factor that is often overlooked: the enormous investment China is making in education.
He makes a point about Education - how many know English good enough to understand the nitty gritty of the language and trust me as much as you throw that English is not the only language the truth is simple - IT IS THE UNIVERSAL LANGUAGE.
Even if China is able to produce educated people - India already has one of the largest number of Engineers and Doctors coming out of its colleges every year. The latest bill on Education India bears testimony to the fact that the Indian government is completely focused on INCLUSIVE GROWTH. Further, Indian Private SECTOR IS LIGHT YEARS AWAY FROM CHINA.
Point 3:
The second thing many underestimate when making projectionsfor China's economy is the continued role of the rural sector. When we imaginethe future, we tend to picture Shanghai high-rises and Guangdong factories, butchanges afoot in the Chinese countryside have made it an underappreciatedeconomic engine. In analyzing economic growth, it is useful to divide aneconomy into three sectors: agriculture, services, and industry. Over thequarter-century between 1978 and 2003, the growth of labor productivity in Chinahas been high in each of these sectors, averaging about 6 percent annually.
The second point he makes is about prodctivity - Of course India cannot match it in the Industrial sector right now but compete on Agriculture and you would know where we stand - You might want to argue that many commit suicide but then again you forger that India is net exporter in Agriculture. And we all know where we stand in the SERVICES SECTOR.
Point 4:
"Third, though it's a common refrain that Chinese data areflawed or deliberately inflated in key ways, Chinese statisticians may well be underestimating economic progress."
All the more reasons to believe that the under-estimation will not lead to greater economic gains in the future. Sooner or later the world will get to know and therefore your currency revaluation will occur making you not so attractive for PRODUCTION.
POINT 5:
Political System: I have no comments on it - But it seems to me from my understanding of economics that it will fizzle out soon under inside and outside pressure - further as you grow bigger and bigger the economies of scale turn into DIS-ECONOMIES OF SCALE! A very potent problem that the USSR faced leading to decreased reliability of basic necessities. As a government grows bigger and bigger it tends to use its resources less wisely or in other words smaller organizations use their resources better given the scarcity of the resources.
POINT 6:
"Finally, people don't give enough credit to China'slong-repressed consumerist tendencies. In many ways, China is the mostcapitalist country in the world right now. In the big Chinese cities, livingstandards and per capita income are at the level of countries the World Bankwould deem "high middle income,"
Consumerist tendencies arise from a higher CONSUMER BASE and people who have more to spend - Living standards in Big cities have a limit to which they can grow so in the next years it will be the second tier cities that will witness the growth. India has yet to reach the maximum potential for its TIER 1 cities forget about Tier 2.
LAST BUT NOT THE LEAST - ALL THESE CHARACTERISTICS COUNTED BY THE AUTHOR ARE ALSO TRUE FOR INDIA - SO WHY IS THERE ANY REASON TO BELIEVE THAT INDIA WILL NOT ACHIEVE THE SAME GROWTH RATE AND AS BIG AN ECONOMY.
THIS PAPER WAS MOST LIKELY A PROPAGANDA TO WARN THE US GOVERNMENT AS MENTIONED BY ITS HEADING AND THE GUY WAS MOST LIKELY PAID A LOT TO WRITE THIS!
SO PLEASE GET A NEUTRAL SOURCE LIKE GOLDMAN SACHS RATHER THAN A SINGLE PERSON TO SUPPORT YOUR VIEWS!
Yes, you are not illiterate, and you are better than economy noble winner, you shouldnt be here.
