Asia has two most budding economies – India and China. The whole world is well accustomed with the great growth potential both the countries have. The major reason behind India’s economic boom is the growth in the services sector, whereas China’s economy has risen because of its strong manufacturing base.
Over the past years, many industry experts and economists have put forward the point that India must boost its manufacturing sector in order to achieve a sustainable growth rate of its economy. India is working to push its manufacturing sector and on the other side, the growth in the Chinese economy is falling. Another reason that is influencing India to improve its manufacturing sector is the fact that the global investors are looking for a country, other than China, to park in their money.
Former chairperson of Microsoft India feels that for good twenty years, China has served as a growth engine for many global companies, but now those companies are on a lookout for the next China. And no other country can become China as India can. India is an ideal choice to become next China. All that India is supposed to do is to unleash its potential and attract global investment.
The time has come when India should unleash its true potential and mark its rightful place in the world. We are hopeful that this is a perfect time to bring in this big change. With the new Narendra Modi government, India is all set to tread the path of development, as Mr. Modi has promised to provide the required impetus to the manufacturing sector. Along with the growth in manufacturing sector, following are some other very important areas in which India must work in order to be the next China.
Structural reforms
There are several structural reforms required in the fields such as land, labor, railways, agriculture, infrastructure, mining, tax laws, etc. in India.
Attracting FDI
India reached the peak of FDI inflows of $31 billion in the year 2009; thereafter it declined to a total of $19 billion in 2011. Many companies withdrew because of the unfriendly business environment in India. Therefore, to attract huge FDI inflow, India needs to change some of its policies and behavior and become an ideal country to do business.
Judiciary and Poverty Reduction are two other point on which Mr. Narendra Modi needs to work upon in order to bring India at the place of China.
