Will India become the next fastest growing economy in Asia?

[Aepsilons]

Yeah..the goal is that, though in a country like India it's much much more difficult to achieve that as compared to China.Growth needs to be all inclusive..we cannot have a large percentage of the population in poverty when we talk of growth, it would be a social nightmare.

Its important not to compare to China in terms of policy implementation. The CPC has a tendency of policy reforms that may provide short term gains, but result in long term effects, an example has been their environmental exigency. A result of Mao-era environmental engineering.

Again, one thing that the Indian government can learn from the Chinese are more so operational policy initiatives in context to manufacturing processes. India's industry has not reached potential , and focus is on light service sector, heavy industry has yet to be tapped. Hard industry such as manufacturing is what will produce hundreds of thousands of jobs that will transform Indian civil society on the grassroots level to the national polity level. It may even have an effect on urbanization levels as well as greater infrastructure development to meet urbanization rate.

 

[Ind4Ever]

We are the last bric's standing

Forbes : Economic Growth And India's Global Rise :
"Worth placing the progress of the Indian economy in a global context. Using International Monetary Fund data, India is now growing at 7.46 percent. Last year the World Bank assessed that the Indian economy had become the world’s third largest in purchasing power parity terms. This year, the U.S. Department of Agriculture estimated that in real terms, the Indian economy—today the eighth largest by this measure—would become the world’s third largest by 2030. And this year, China’s growth has slowed, making India now the fastest-growing major economy, while other BRICS like Brazil and Russia have slowed, too. These external developments have made India look brighter by contrast.
India has become a $2 trillion economy now.According to a World Bank report, India's GDP crossed the $2-trillion mark in 2014 and at present stands at $2.067 trillion.
In just seven years, India has added one trillion to its economy.Going by income, India is still in the lower middle income category.India's gross national income per person has risen to $1,610, which converts to Rs 1,01,430 by present exchange rate.India is among the world the fastest growing economies this year

PPP is used to compare economies and incomes of people by adjusting for differences in prices in different countries to make a meaningful comparison.India has displaced Japan to become the world's third biggest economy in terms ofpurchasing power parity (PPP), according to a World Bank report released on Tuesday.The 2011 round of the bank's International Comparison Program (ICP) ranked India after the US and China. The last survey in 2005 had placed the country on 10th place.India's share in World GDP in terms of PPP was 6.4% in 2011 compared with China's 14.9% and the US' 17.1%, the latest ICP showed. The survey covered 199 economies.
"The United States remained the world's largest economy, but it was closely followed by China when measured using PPPs. India was now the world's third largest economy, moving ahead of Japan," the report said.

India’s growth rate is expected to rise to 7.5 per cent this year and next, making it one of the fastest growing economies in the world, according to the IMF latest economic health check.

The other Asian giant China’s economy is slowing to a more sustainable pace – 6.8 per cent GDP growth in 2015, and 6.3 per cent in 2016, according to the International Monetary Fund’s (IMF) Regional Economic Outlook for Asia and the Pacific.

Its Official: India is Worlds Fastest-Growing Big Economy - NDTVProfit.com

India Passes China to Become Fastest-Growing Economy - India Real Time - WSJ

Of all the fast-growing BRIC countries, only India stands strong right now. Its economy seems perfectly structured to handle our delicate, and dangerous, global market
A
year and a half ago, emerging markets fell into chaos when the Federal Reserve signaled that the American economy had improved enough to end its asset-buying program, and investors began pulling out of foreign markets.
India was in a vulnerable place then - its current account deficit had been at 6.9% in late 2012, and outflows hit the economy hard. Plus, inflation was on the rise and growth was stagnating.


ON your heart whelming poverty concerns . First i like to thank u for showing you intrest in building toilets for India . Lets compare poverty line of India China and Pakistan

India :India has already achieved the target of reducing poverty by half, with 21.9% of its 1.2 billion people living below the poverty line or having income of less than $1.25 a day, the U.N. report said. India had set a target of 23.9% to be achieved by 2015.India has halved its incidence of extreme poverty, from 49.4 per cent in 1994 to 24.7 per cent in 2011, ahead of the 2015 deadline set by the U.N,, shows the Millennium Development Goals (MDG) Report, 2015.

China : Official data shows that about 98.99 million people still lived below the national poverty line of RMB 2,300 per year at the end of 2012. With the second largest number of poor in the world after India, poverty reduction remains a fundamental challenge.
In 2014 More than 82 Million People Live Below Poverty Line.BUT Real data will blow your mind.
Zheng, who is vice director of the State Council Leading Group Office of Poverty Alleviation and Development, explained that the majority of poor Chinese live in inadequate structures, often in areas prone to natural disasters.
According to a report by Wei Shangjin, chief economist of the Asian Development Bank , the number of Chinese people living under poverty line is of more than 400 million, or 30% of the population.UNICEF said there were around 712,000 orphans in China in 2010 - the latest statistic available - but child welfare groups believed the number could be much bigger

 

[illusion8]

Correct. The CPC was able to lift 800 million out of poverty levels. I suppose India's Government should now goal to lift the same number out of poverty. This can be done. Seems to me that Modi inherited an effective economic machine that Manmohan Singh built (who was an Economics scholar, btw). Now let's hope that succeeding PMs of India will be as practical and rigid as Modi and Singh.



Interesting enough that ADB and IMF project India's growth rate from 2015 to 2025 will be up to 10% per annum.

Indonesia is also expected to grow at 14% per annum.

I would credit P.V Narasimha Rao as the real architect of India's economic reforms. A brilliant individual.
P. V. Narasimha Rao - Wikipedia, the free encyclopedia - "Father of Indian Economic Reforms"

 

[Ind4Ever]

Let's look at India's actualized industry growth (manufacturing and service), looks really healthy, to be honest:

It will multiple in many folds as full potential of FDI promised are yet to come. And boost of Make in India is just starting. I bet India will add another trillion dollars to its economy in very short term like 5/7 years.

 

[Aepsilons]

I would credit P.V Narasimha Rao as the real architect of India's economic reforms. A brilliant individual.
P. V. Narasimha Rao - Wikipedia, the free encyclopedia

Rao indeed was critical. But one man that is not given enough credit is Mr. Singh. Mr. Singh was 'silent' and not as 'vocal' as Modi, but by Jove, the man was a policy genius. Tactical and shrewd, by all means.

 

[illusion8]

Rao indeed was critical. But one man that is not given enough credit is Mr. Singh. Mr. Singh was 'silent' and not as 'vocal' as Modi, but by Jove, the man was a policy genius. Tactical and shrewd, by all means.

Thankfully, overall Indian voters have become smarter.

 

[TruthPrevails]

Most Indians are impressed with the China / South Korean / Japanese models, Chinese pulled out millions of their citizens from poverty within a couple of decades. Being number one isn't the criteria, rather - social development is and should be the foremost.

One cannot compare Chinese growth model with that of India. In India for land acquisition you need to pass a bill on parliament, have a debate with your opponents, make the citizens support you, While in China, the President can take away land if he deems fit. The former may seem like a slow, long term process but the fact is, any major decision in India is always made by keeping people in mind and the error probability becomes less, as they say Haste makes waste. Also there is a fear of people protesting against you and your party, so any major decision has to be taken very carefully. China on the other hand enjoys freedom of taking rapid decision, implementing decisions rapidly thats good for quick economic recovery, how beneficial will it be in long term, only time can tell. God forbid, but one bad leader and China can go back to stone age. Rapid decisions gives you rapid results, its like buying a smartphone. If you want it you either can have a healthy discussion with your friends, families about budget and features or you can choose to ignore them and buy the one that you deem fit.

 

[Ryuzaki]

India is also the country with the second highest number of Internet users(352 million users as of June 2015) which presents a huge oppurtunity in itself.

Also the title is wrong,India is already the fastest growing major economy

 

[dadeechi]

Will India become the next fastest growing economy in Asia? What are the implications for this new paradigm. Let's discuss.

Economy is like a marathon. Speed counts only when you have the stamina to go the distance. China has shown in the last 30 years it has both stamina and speed. India on the other hand, in the last 20 years shown that it has stamina and speed only in the last one year. It needs to be seen how long India could maintain this speed.

 

[illusion8]

One cannot compare Chinese growth model with that of India. In India for land acquisition you need to pass a bill on parliament, have a debate with your opponents, make the citizens support you, While in China, the President can take away land if he deems fit. The former may seem like a slow, long term process but the fact is, any major decision in India is always made by keeping people in mind and the error probability becomes less, as they say Haste makes waste. Also there is a fear of people protesting against you and your party, so any major decision has to be taken very carefully. China on the other hand enjoys freedom of taking rapid decision, implementing decisions rapidly thats good for quick economic recovery, how beneficial will it be in long term, only time can tell. God forbid, but one bad leader and China can go back to stone age. Rapid decisions gives you rapid results, its like buying a smartphone. If you want it you either can have a healthy discussion with your friends, families about budget and features or you can choose to ignore them and buy the one that you deem fit.

that's why it's much much more difficult for India to match the pace.

China has another thing going for it - 95% of their population is single Han ethnicity and race which makes it much more easier to form a single homogeneous entity.

 

[Raja.Pakistani]

Most Indians are impressed with the China / South Korean / Japanese models, Chinese pulled out millions of their citizens from poverty within a couple of decades. Being number one isn't the criteria, rather - social development is and should be the foremost.

There is uneven distribution of goods and services in India so GDP increase in a country like India dont help much to reduce poverty as it don't necessarily guarantee an equitable distribution of incomes

 

[Aepsilons]

Economy is like a marathon. Speed counts only when you have the stamina to go the distance. China has shown in the last 30 years it has both stamina and speed. India on the other hand, in the last 20 years shown that it has stamina and speed only in the last one year. It needs to be seen how long India could maintain this speed.

One of the reasons that India has lagged behind, from a constructive critical context, has been due to the inefficiency of government in years past, as well as issues of corruption. As India improves pro-efficiency building measures by taking action on corruption as well as streamlining policies that encourages FDI --- will benefit the country.

 

[Beast]

India is also the country with the second highest number of Internet users(352 million users as of June 2015) which presents a huge oppurtunity in itself.

Also the title is wrong,India is already the fastest growing major economy

Really?

India's economic growth slows to 7% - BBC News

 

[illusion8]

There is uneven distribution of goods and services in India so GDP increase in a country like India dont help much to reduce poverty as it don't necessarily guarantee an equitable distribution of incomes

I totally agree, though things are looking up, states are taking up the economic mantles on their own. States have started competing against each other, which is a good sign. There's much more internal integration now then before.

 

[Echo_419]

Correct. The CPC was able to lift 800 million out of poverty levels. I suppose India's Government should now goal to lift the same number out of poverty. This can be done. Seems to me that Modi inherited an effective economic machine that Manmohan Singh built (who was an Economics scholar, btw). Now let's hope that succeeding PMs of India will be as practical and rigid as Modi and Singh.



Interesting enough that ADB and IMF project India's growth rate from 2015 to 2025 will be up to 10% per annum.

Indonesia is also expected to grow at 14% per annum.

Percentage wise we will be the fastest