It is possible for India to become “China 2.0” to attract most of the world’s capital, says a report by a Beijing-based private think tank Anbound. The findings of the report were published by China’s official daily Global Times on Wednesday. The report argues that Beijing should “ponder and study” the rise of Indian economy carefully or end up as an “unfortunate bystander” watching India’s success.
China’s GDP grew at 6.7% to more than $ 10 trillion in 2016, while the growth in Indian economy was recorded at 7.1% for 2016-17.
The report acknowledges that GDP of India is far behind vis-a-vis China, but the former country continues to remain a “potential emerging market that has high attractiveness for the global capital” The report says, India’s “vast domestic market, low labor costs and skilled labor market are its most attractive features. As China’s demographic dividend diminishes, India, with half of its population below the age of 25, is poised to take advantage.”
Drawing a parallel between China’s past and India’s present, the study noted that “changes that are taking place in India may also point to great potential for development.” According to the study, India could see an “explosive economic growth” in future.
What if India decides to copy China? In such a case, the report said, “By copying China, India may also develop an Internet economy and boost its infrastructure construction, along with investment-driven growth. In other words, India may turn itself into China 2.0, and let global investors decide whether to invest in China or India.”
The study also pointed out that India has already been successful in attracting more and more investment. It explained this with the example of Prime Minister Narendra Modi’s solar initiatives. PM Modi is hoping to raise $100 billion investment in the solar energy sector in the next five years. “No other country could compete with India in supporting investors in the solar economy,” it said.