China's growth story and why India can catch up with its gaint neighbor!!
Before the Chinese government introduced several economic growth reforms in 1979, the average annual real GDP growth rate in China was estimated at 5.3% (from 1960-1978)
From 1979 until 2010, China's average annual GDP growth was 9.91%, reaching an historical high of 15.2% in 1984 and a record low of 3.8% in 1990. This was when more man power was involved not only in China but all over the world. India's growth story picked up with BJP lead Vajpayee government from 2000 which had very promising effects for the next decade. It's because ground level economic initiative and industrialization made as priorities. Momentum was carried on till further step was need when Congress was in power. They failed so India say GDP dipped beloved 4%.
China and India are both agricultural economy. Once China stepped aside from being agricultural economy to Industrial power house in 1979 that's when we say huge spikes in the GDP growth. India has realised this and learnt from its mistake. Current BJP government led by Modi want to create more jobs to farmers other than agricultural sectors. Efforts are made and it's not diffrent from what China did. This momentum in GDP will keep growing or at least be stable at 6.9-7.5 for years to come.
That's what I said it's because India has 60% some population contributing to 16% only...
Agriculture: 16.1% Industry: 29.5% Services: 54.4%. Now alternatives are been made by setting up agricultural products based industries in many villages. Connectivity is been improved fdi allowed in very sensitive sector like retails.
