Why has Indonesia developed much faster than India?

[esolve]

in 1998, India and Indonesia have similar GDP per capita, but after that, Indonesia developed much faster than India

 

[jaibi]

Could u kindly post the source?

 

[WaLeEdK2]

Maybe because of the population difference?

 

[xunzi]

Ask Japan. You thought that being the biggest Japanese cheerleader that Japan will pour ton of money into India development. LOL

 

[Aepsilons]

View attachment 260847

in 1998, India and Indonesia have similar GDP per capita, but after that, Indonesia developed much faster than India

India has steadily increased its might in the global arena. In the three years before the global crisis and even after it, the country has been growing at a pace that has been the envy of the developed world. With so much more growth potential waiting to be unleashed, foreign investors have been making a beeline towards Indian shores for attractive returns. India's corporate world has also evolved and many companies have become world class organizations with ambitions to become renowned players globally.

Yet, this picture completely belies the state of affairs in India's rural hinterland. There, India's stupendous GDP growth has not made any marked difference to their standard of living. Poverty in these regions continues to remain a disease and highlights all the more the big economic and social divide in the country. One of the reasons that has made India an attractive destination is its so called demographic dividend. The idea is that the young working population will go a long way in bolstering India's growth in the coming years.

Indeed, India's metros have seen remarkable progress and have led to the rise of the middle class whose standard of living has improved along with the country's growth. But this difference has to be felt in the rural areas too. Especially since it accounts for two thirds of India's 1.2 bn population.

India can improve by making sure to realize the following policies:

1. Enact policies that may enable greater Foreign Direct Investments into India
2. Encourage greater growth in manufacturing and hard industry
3. Redistribution of manufacturing in the rural regions of the Indian States, not necessarily in the cities
4. Infrastructure development in the rural areas, aggressive policy actualization
5. Reduce taxes on foreign investors as this poses as the largest barrier for greater foreign investiture in India
6. Combat corruption as this is the main barrier that prevents pro-efficiency policies in the Indian Government and Governmental Agencies

 

[pr1v4t33r]

Nothing to worry about. They are progressing and developing well. India have a big burden to elevate hundreds of million people out of poverty line. Indonesia have this duty too, but in a relatively smaller scale.

 

[naveen mishra]

View attachment 260847

in 1998, India and Indonesia have similar GDP per capita, but after that, Indonesia developed much faster than India

i would be very happy to see that, but presently facing Hugh down fall , just last month we have reduce man power ,
expecting situation to normalize soon ,

 

[Icewolf]

Using Ancient math India has more GDP per capita than Norway

 

[Ryuzaki]

I think as Indonesian rupiah has Ganesh on currency note

 

[AndrewJin]

India has steadily increased its might in the global arena. In the three years before the global crisis and even after it, the country has been growing at a pace that has been the envy of the developed world. With so much more growth potential waiting to be unleashed, foreign investors have been making a beeline towards Indian shores for attractive returns. India's corporate world has also evolved and many companies have become world class organizations with ambitions to become renowned players globally.

Yet, this picture completely belies the state of affairs in India's rural hinterland. There, India's stupendous GDP growth has not made any marked difference to their standard of living. Poverty in these regions continues to remain a disease and highlights all the more the big economic and social divide in the country. One of the reasons that has made India an attractive destination is its so called demographic dividend. The idea is that the young working population will go a long way in bolstering India's growth in the coming years.

Indeed, India's metros have seen remarkable progress and have led to the rise of the middle class whose standard of living has improved along with the country's growth. But this difference has to be felt in the rural areas too. Especially since it accounts for two thirds of India's 1.2 bn population.

India can improve by making sure to realize the following policies:

1. Enact policies that may enable greater Foreign Direct Investments into India
2. Encourage greater growth in manufacturing and hard industry
3. Redistribution of manufacturing in the rural regions of the Indian States, not necessarily in the cities
4. Infrastructure development in the rural areas, aggressive policy actualization
5. Reduce taxes on foreign investors as this poses as the largest barrier for greater foreign investiture in India
6. Combat corruption as this is the main barrier that prevents pro-efficiency policies in the Indian Government and Governmental Agencies

U don't have to go to rural regions, just walking in urban districts u will find the reason.

 

[Gazi]

The best answer would be LOCATION. Indonesia is located in South East Asia having very lower scale Conflicts and comparatively well off Economies around their neighborhood while India on the other hand is located in South Asia which are still struggling with Political Conflicts and Doesnt have focus on economy like South East Asian have done. Being an ASEAN member does provide Indonesians some benefits as well as Large Economy is also very much helpful in setting up Manufacturing sector in the country.

 

[Aepsilons]

U don't have to go to rural regions, just walking in urban districts u will find the reason.

Find the reason for what? Be specific, and direct, bro.

 

[AndrewJin]

Find the reason for what? Be specific, and direct, bro.

I cannot be too direct, or I'll be get banned as my previous experience.

Yet, this picture completely belies the state of affairs in India's rural hinterland. There, India's stupendous GDP growth has not made any marked difference to their standard of living. Poverty in these regions continues to remain a disease and highlights all the more the big economic and social divide in the country.

 

[Aepsilons]

The best answer would be LOCATION. Indonesia is located in South East Asia having very lower scale Conflicts and comparatively well off Economies around their neighborhood while India on the other hand is located in South Asia which are still struggling with Political Conflicts and Doesnt have focus on economy like South East Asian have done. Being an ASEAN member does provide Indonesians some benefits as well as Large Economy is also very much helpful in setting up Manufacturing sector in the country.

In contrast with the more open Indonesian economy, India had one of the most controlled economies outside the Communist bloc. This is no surprise considering that socialist ideology has been influential among India’s intelligentsia and policy makers over the past half century. India’s leftist leanings are pervasive, and even today the country seems unwilling to abandon its past dirigisme, which continues to block the necessary privatisation of its state enterprises.

After independence controls were imposed on prices, industrial investment, bank lending, the capital market, imports and even on some exports. The state retained ownership of several key industries, while a reservation scheme was introduced for small-scale enterprises. Domestic industry was heavily protected, competing imports were mostly banned, and the government restricted exports and foreign direct investment. Private monopolies were also restricted, which prompted many of India’s private companies to invest overseas, in both developing and developed countries. For their part, foreign multinationals have mostly been lured into joint ventures with India’s state-owned enterprises to service the large domestic market rather than export markets. As a result, in the first four decades of its independence India’s economy grew at an average annual rate of only 3 per cent.

The twist ending is that India introduced economic liberalisation measures more than 20 years later than Indonesia. Though they were implemented much later, these measures symbolised a decisive policy shift from statist nationalism to a liberal economic strategy. The outcome of that shift has been rapid economic growth and since the early 1990s India’s economy has grown at a pace second only to China.

The Indians still have much to do. With a population of over 1.2 billion, their main national mandate would be to lift some 600 million people out of poverty. And i think that should be their main priority, more so than comparing with other countries.



Reference: East Asia Forum
Retrieved from: Comparing India’s and Indonesia’s economic performance | East Asia Forum

I cannot be too direct, or I'll be get banned as my previous experience.

Are you making indirect reference to social issues in their country? E.g, the poverty actualization , or are you making reference to infrastructural limitation ? Please be direct with me.

 

[CAPRICORN-88]

If both nation (India and Indonesia) do not commit themselves to reducing their population, all this talk about who is ahead is just pep talk to satisfy their folks back home.

"Less men More share" should ring in the head of the leaders of both these nation.

But both these nations have leader who are committed to be popular.

By 2030 hopefully India will have 5% of the HSR railway track of China. But IMO that is progress by India standard.