My Video CV

Strategies to be followed by India to compete with China

Hello Mam,

Talking about India’s strategies that India should follow, as we all know that India is a large country having population of more than a billion, second highest in the world. It is the largest democracy in the globe. GDP India is fourth highest in the world in PPP terms.

· Comparing the Indian economy with the Chinese economy China is well ahead of India.
China's relative success over India in attracting foreign direct investment (FDI). At the same time, India's FDI figures are understated, because "they exclude foreigners' reinvested profits, the proceeds of foreign stock market listings, intra-company loans, trade credits, financial leases, and so on".
India's economic backwardness has little to do with democracy as such, but has a lot to do with corruption, fiscal mismanagement, a lack of international ambition and a history of over-protection at home.
Significantly, India need to improve its investments in the physical sectors - such as manpower development, health, power, water management, railroads, roads and highways, communication etc remains highly superficial and gossipy.

· The shortage of power is estimated at about 10 percent of total electrical energy and roughly 20 percent of peak capacity requirement. Fifty years after independence, many rural areas are still without electricity.

· Efforts should be made to develop India's ports. For example, recent bureaucratic problems encountered in the private tendering processes at Mundra in northwestern India and in the conversion of two break bulk berths to a new container terminal at Nava Mumbai under the Jawaharlal Nehru Port Trust have slowed down the development of ports in India.

· India should also focus on agricultural sector, which continues to employ about 60 percent of the country's workforce, has seen a real decline in terms of its contribution to GDP growth and its share of GDP. India's industrial sector has to replicate the growth magic of the services sector either. While industry's share of GDP has increased over the years, its growth rate dropped in the 1990s and its contribution to GDP growth has more or less remained constant over the years.

· Data show that six major industry groups - food products, cotton textiles, textile products, wood, paper and basic metal and alloy industries - have experienced a sharp slowdown over the past four years and therefore steps should be taken to improve these sectors.

Regards,

Puja Priyadarshani

MBA 2B