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India
will catch up with China: ADB economist
India
will catch up with China by the year 2020 in terms of economic growth
on the strength of its better efficiency of investments, an Asian
Development Bank economist has said.
"India also has an edge over
China in service sector," ADB Chief Economist Ifzal Ali, who
has taught at Indian Institute of Management-Ahmedabad and the Delhi
School of Economics, told a press briefing on Monday.
Asked whether India would ever catch
up with China , Ali replied, "Eventually yes".
He said the current volume of investment
in India could not be compared with that in China -- in China it
is 40 per cent of the GDP, while in India it is 22 per cent.
"However, the efficiency with
which investment is used is higher in India than in China ,"
he said. The implication is that India is less resource-intensive
than China .
Ali did not foresee India becoming
the manufacturing platform for the world like China but New Delhi
has a comparative advantage over Beijing in the service sector,
which is already 50 per cent of the GDP against 22 per cent of the
GDP in China .
India 's GDP will continue to be
half that of China for the next 5-10 years. But China 's growth
rate will start to go down while India 's will go up; so "if
you are going as far as 2020, yes" ( India will catch up),
he said.
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