'India's GDP likely to push past China by middle of century'

By agencies   |   Tuesday, 05 April 2005, 19:30 IST
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WASHINGTON:Continuing population growth and development of a modern economy propelled by advanced technology is likely to push India's GDP past that of China by the middle of the century, according to economist Paul Erdman. "In many ways, India's prospects in the 21st century are superior to those of China. The institutional framework in the two countries could hardly stand in greater contrast", he says in an article for Marketwatch, published by Dow Jones. Erdman says India is a "full-fledged democracy" while China remains a Communist state, "under one-party governance". "India has the advantage of a huge university-educated pool of top-notch scientific, technological and managerial manpower that has the unique advantage among Asian nations of being able to think in English", he says. What is generally not appreciated is the entrepreneurial aptitude and skills that have developed among highly educated young Indians due to time spent in Silicon Valley, he says. Many Indians hone their technological skills abroad, discover and explore the sources of venture capital and then return to India. The result is the springing up of technology parks, basically Silicon Valley clones, throughout Southeast Asia, but especially in India", of which Bangalore is a prime example, he adds. As a result, where outsourcing is concerned, India is to the service sector what China is to manufacturing and this makes India "the first Asian economy to rely on brain power-led growth", he says.

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