CAN INDIA SURPASS CHINA IN GROWTH?

The current relations of India and China are not hidden from anybody. It is very clear that both the countries are having disputes at the border. There was a fight between the soldiers of both the both the country and soldiers from both the nation lost their lives. The Indian government also banned 69 Chinese applications including Tiktok, Cam Scanner, ShareIt and many more, because of safety reasons. The demand of ban on Chinese products and making India self sufficient is rising more, after our lost their lives at the India-China border. But the actual question is , can India actually surpass China in growth? This seems to be a very a strenuous task , as the dominance of China over Indian market is not something which can be ignored.

The main reason behind the growth fatigue in China according to the Boston Consultancy Group (BCG) is that the cost of production in China is now the same as that in US. An increase in wages, shifting exchange rates and higher energy cost in the past 10 years resulted in manufacturing stress in China. On the contrary, labour cost is still much lower in India.However apart from the cost difference there are many more challenges which India need to tackle if it wants to exceed China. The first challenge for India is to create a friendly business environment. A culture of entrepreneurship needs to be developed. Secondly the Labour laws in India are very obsolete in nature, a big reform in the whole concept is required to usher the second generation reforms lead by the reforms in labour sector. The macro-economic stability is another thing which designs the path of the future growth of a country. The Chinese economy is controlled by government with exchange rates, interest rates etc. Although it may provide stability but also apply pressure on the controlling authorities. The Indian government needs to keep the financial rights by keeping a tab on inflation, exchange rate etc. The another factor which our government need to focus upon is the Investment on Human Resource. The number of unskilled labors in our country is quite high, whereas the it is never a problem for China because they have invested enough in their Human Resource.The Indian government should provide skills to its vast labour force. The last but not the least factor which I will be discussing here is sufficient energy. For a firm, continuous supply of power and electricity is must so that they can continue their production without any hindrance.

Thus, there is no doubt that exceeding China in terms of growth is an impossible task for India, but for this the government needs to lay down the platform for the economy to take off and address the aforesaid challenges.