Why india has to ally with US

[newdelhinsa]

Pakistani and Chinese are telling India not to be friend with USA.....Interesting.

 

[Trucker]

india china friendship::impossible.

 

[Vinod2070]

I think the Chinese infrastructure companies are helping build our infrastructure, their banks are financing that critical infrastructure,, their companies are rolling over each other to share the source codes etc.

I think we can use their help for the time being.

 

[LaBong]

The US military industrial complex (MIC) plays a vital part in driving the US economy. After all, it is the only real industry that is prospering in the US. The US MIC is intrinsically linked to the US economy. Every other thing is manufactured to China, services are outsourced elsewhere, IT is outsourced to India. The US is smart that it sells all its weapons to nations, to rebels inside those nations etc. The US is also the most militarily technologically advanced country in the world.

India's defense spending takes a huge toll on its economy, whereas it doesn't impact China as much.

What percentage of GDP do India and China spend on defence?

 

[Chinese-Dragon]

Pakistani and Chinese are telling India not to be friend with USA.....Interesting.

Actually, I (the only Chinese member posting on this thread) was very much in favour of India giving up its "independent foreign policy", and joining the US camp.

Did you even read the thread?

What percentage of GDP do India and China spend on defence?

China's military spending goes almost entirely to indigenous industries. So it feeds back into our own economy.

India's economy is four times smaller, with drastically falling growth rates (around 7% now). Yet they are the largest importer of weapons in the world.

 

[LaBong]

China's military spending goes almost entirely to indigenous industries. So it feeds back into our own economy.

India's economy is four times smaller, with drastically falling growth rates (around 7% now). Yet they are the largest importer of weapons in the world.

Drastically falling gdp, eh I expect better from you!

India is on her way to indigenisation of defence and we will do it sooner or later, it's not as if we're in shortage of talents. China was at it from earlier but still imports a lot of defence materials.

 

[Vinod2070]

We don't have to worry about China. Their babus with the 1 child policy (to go to 0 child soon?) are making sure that the country will have an average age of 50+ in a few decades.

Every person entering the market is burdened with taking care of 4 oldies.

Their politicians will make sure it withers away on its own.

 

[53fd]

What percentage of GDP do India and China spend on defence?

India is the world's largest arms importer, overtaking China. It has a huge CAD, whereas China has a huge account surplus. Surely you can connect the dots. It's a similar type of situation with the US (in terms of the CADs), only that it exports most of the arms around the world (as opposed to India importing them).

 

[Vinod2070]

Drastically falling gdp, eh I expect better from you!

India is on her way to indigenisation of defence and we will do it sooner or later, it's not as if we're in shortage of talents. China was at it from earlier but still imports a lot of defence materials.

Even with the "Drastically falling gdp", we are expected to start having faster growth rates than them from 2013.

 

[Vinod2070]

What India imports goes towards building our infrastructure and industry and fueling the economy.

What China gets in surplus goes in US treasury with infinitesimal yields. The US money are in turn invested in buying assets in China and other places.

I would settle for CAD any day as long as it is sustainable. In India's case, it is sustainable, more so as our exports are growing so fast.

OTOH, Iraq (and other Arabs) exports nothing but oil.

 

[LaBong]

India is the world's largest arms importer, overtaking China. It has a huge CAD, whereas China has a huge account surplus. Surely you can connect the dots. It's a similar type of situation with the US (in terms of the CADs), only that it exports most of the arms around the world (as opposed to India importing them).

I agree India imports most of her defence need, but once again let me ask you, what percentage of GDP do India spends on defence? We can carry on discussing how it affects Indian economy after you answer my specific query.

 

[53fd]

I agree India imports most of her defence need, but once again let me ask you, what percentage of GDP do India spends on defence? We can carry on discussing how it affects Indian economy after you answer my specific query.

That is how you interpret it. I have given you my answer. If you want to look at a small statistic, go ahead. You have to see how the defense is impacting your economy overall, not just in terms of GDP. I am fully aware of what the statistic of (military expenditure/GDP) is for both China (2.1%) & India (1.8%), but it doesn't present the true picture. As Chinese Dragon has already told you, China's military spending goes almost entirely to indigenous industries, so it feeds into their economy. India imports most of its defense stuff.

 

[Chinese-Dragon]

We don't have to worry about China. Their babus with the 1 child policy (to go to 0 child soon?) are making sure that the country will have an average age of 50+ in a few decades.

Every person entering the market is burdened with taking care of 4 oldies.

Their politicians will make sure it withers away on its own.

Actually, China has a lower dependency ratio than India does, and this is likely to continue for a very long time.

China and India, 2025 | RAND Report

And this is under the assumption that the Chinese government is stupid enough to keep the one-child policy in its current form for several more decades.

You can say many bad things about the Chinese government, but they are not stupid when it comes to the economy. Especially when they are aware of the problem several decades before it is predicted to happen.

In fact, they are already starting to tweak the one-child policy. Check it yourself.

 

[Vinod2070]

China has to make do with substandard domestic stuff as they have no alternative.

India has to make sure not to compromise on the security while building domestic capabilities over a period.

Even countries like Japan and Australia spend significant amounts of defense imports.

Not to mention the leader of the Islamic world, Saudis who spend $50 billion on US arms that they can't even operate.

 

[Vinod2070]

Actually, China has a lower dependency ratio than India does, and this is likely to continue for a very long time.

China and India, 2025 | RAND Report

What happened to all the oldies? This is really curious!

The policy has been there for decades. Your average age is much higher, so is the number of old age people compared to the young people. Every newly married couple has to cater to 4 oldies.

So how do you explain this?

And this is under the assumption that the Chinese government is stupid enough to keep the one-child policy in its current form for several more decades.

It has done so for the last several decades.

You can say many bad things about the Chinese government, but they are not stupid when it comes to the economy. Especially when they are aware of the problem several decades before it is predicted to happen.

Many a gap between the cup and the tea.

In fact, they are already starting to tweak the one-child policy. Check it yourself.

What tweaks? I hope not 0 child policy for a few decades. It may just be tool late at the end of it.