U.S. magazine predicts shift in balance of power in favor of India
By agencies   |   Wednesday, 17 August 2005, 19:30 IST
Printer Print Email Email
NEW DELHI:India will overtake Germany as the world’s third biggest economy within three decades that will pave the way for shift in balance of power in favor of India, leading U.S. based magazine Businessweek has said in its August 22-29 issue. The balance of power will shift to the East as India continues to grow over the next decades, it says. What makes India especially powerful is that it complements strength with another Asian giant China. An accelerating trend is that technical and managerial skills in both China and India are becoming more important than cheap assembly labor. While India is a rising power in software, design, services, and precision industry, China would stay dominant in mass manufacturing, and is one of the few nations building multibillion-dollar electronics and heavy industrial plants, the magazine said. The magazine predicts that if the industries of the two countries collaborate, they would take over the world technology industry. For in almost every dimension—as consumer markets, investors, producers, and users of energy and commodities—the two Asian nations will be 21st-century heavyweights. The article observes, rarely has the economic ascent of two still relatively poor nations been watched with such a mixture of awe, opportunism, and trepidation. Comparing the U.S. situation at the onset of 19th century, the magazine says, “India and China possess the weight and dynamism to transform the global economy in the 21st century. The article stresses, isn’t just shifting research work because Indian and Chinese brains are young, cheap, and plentiful. In many cases, these engineers combine skills that often surpass those of their American counterparts.

siliconindia