Comparison of India-China economies irrelevant: Chidambaram
"They (China) are facing different problems. They are revenue surplus country. They have got current account surplus. They got huge foreign exchange reserves ($3.31 trillion)," Chidambaram said in an interview.
He was responding to a question about comparisons between the economies of the two countries after addressing an investors' meeting here.
"China is able to invest all over the world in oils, coal and metals. Their problems are of different kind" while India faced different problems, Chidambaram said.
"We face current account deficit. We have to finance the current deficit in foreign currency. We are, therefore, very dependent on foreign inflows, both FDI and FII, and external commercial borrowing," he said.
"I don't think we should be comparing China and India situation. The comparison is not very relevant. We need to acknowledge our problems. We need to show determination to counter our problems. We need to signal that we are determined to stay the course," he said.
About the drop of FDI inflows to China, Chidambaram said: "China is no longer dependent on FDI. China is a capital exporting country. China has huge reserves. I don't think China's situation with FDI compares with India situation," he said.
Though FDI levels are coming down in China, it still got over $100 billion foreign investment last year.
Asked whether he has any plans to visit China to scout for investment, Chidambaram said: "I have no plans to visit China now."
Be realsitc
Naresh Chand | 31-Jan-2013Reply | Forward What PC is saying is correct. Though we are at a stage to develop very fast,but due to divisions in political forces, & their political interests, are engaged it leg pulling of the ruling combine. We are not able to adopt right policies for the development of the nation. While China has no such problem, they are able to decide what is beast for their country. further, the population growth is another sector, hile their population growth is 6-7% in last 10 years, we have grown 3 times i.e. 19%. that is affecting the satisfaction level of the people. In demcracy, you just ca"t ignore the aspiration & perception of the people, which is our strength & weakness as well. Therefor, there is requirement to reach a consensus over economic policies & administrative reforms, so that the issues effecting people are not effected by the political rivalry.Comparison of India-China economies irrelevant: Chidambaram
Raman Manian | 30-Jan-2013Reply | Forward A most realistic statement by FM. He should also add Indians are not Chinese. Indians have not stopped being feudalistic and divisive by their very nature. They also reserve their worst behavior for their own countrymen. The Chinese have a sense of destiny and are willing to compete with their enemies and even fight them viciously. The Indians don't have a sense of purpose or even interested in greatness. They are petty crabs who pull their own kind down.Economy
Kumar AD | 30-Jan-2013Reply | Forward Congress economic policies have made INDIA bankrupt. They should never be allowed again to run the country.
Directionless Economic policies of Ruling Congress
Dashan | 31-Jan-2013Reply | Forward I totally agree that the ruling Congress has no leadership and clear vision for where to lead Indian Economy. Over dependence on FDI is creating larger deficits, fueling the crisis. Govermental policies are framed targetting 2014 general elections, leaving Indians to their fates! Grassroot changes in political mindset will only gaurentee some improvements in current situation. As long as there is tinkering of regional parties in national policies we can't achieve what other developed countries can.
