Beijing: Indian economic growth, often described as chaotic and weighed down by poor infrastructure, came in for praise from experts in Beijing, compared to more disciplined but highly autocratic Chinese model.
While Indian economic growth was more fuelled by high domestic consumption and services, the Chinese model relied heavily on manufacturing and exports, said Western and Chinese experts at the state TV debate, on the sidelines of the World Economic Forum being held in Beijing.
Besides, India has comparative strategic advantage in the value chain whereas China relied mostly on the labour and cost advantages, said Fu Jun, Professor of the Political Economy of the Peking University.
“India in comparison has done a better job,” Jun said.
“What is interesting from now on is which one is more viable. I have to give credit to India. What India will do next is to continue the strategy and move into other areas. By comparison we (China) have to readjust our strategy into manufacturing. I do not see reasonable balance between supply and demand,” he added.
Human Resources Development Minister Kapil Sibal, who was participating in the debate, said, “Because our economy is based on domestic demand, there is much greater innovation and ability of the entrepreneurs to actually produce wealth. In the long run a lot of innovation and lot of wealth production is going to come from our part of the world.”