A new equation is beginning to emerge in the Sino-Indian relationship. It is no longer the competition but the cooperation that is going to drive the two Asian neighbors' rise to prominence as the global economic powerhouses. That will mean a great reshuffle in the global economic order.
India and China have mesmerized the world with their magical economic growth. The world is watching the robust growth of the Asian giants with a sense of disbelief and incredulity. According to a Morgan Stanley report, India and China have been growing twice as fast as the rest of the world over the past two decades. And if the present trend continues, analysts feel that it will not be long before the Chinese economy overtakes the economies of the US and India to be bigger than Japan's economy (in terms of PPP) in a decade. And if that happens, it will end the five centuries of domination of the West and herald a new beginning for the Asian giants.
India has been growing at a rate of 5-6% since the economy was opened up in 1991 and China at a rate of more than 9% since its economic reforms were initiated in 1978. Clyde Prestowitz, President of the Economic Strategy Institute , US and a former trade negotiator in the Reagan Administration predicts that in his article "The Great Reverse". By the year 2025, China's GDP will be $16 tn from the current $2 tn and India's will be about $5 tn from the current $ 700 bn. Comparatively, the US GDP will be around $21 tn from the current $11 tn, considering the average rate of US growth in the past 40 years.
The textile industry is the largest industry in terms of employment. With the quota restrictions gone now, the domestic industry is all set to make it big in the global textile arena. IT and Pharma R&D activities have also seen a major boost in the recent times. Analysts expect the Indian R&D services and software products market to grow between $8 bn and $11 bn by 2008-10. Rising rates of tourism (7% growth rate since the last 50 years), burgeoning forex reserves now worth $1, 41,204 mn and rising value of the Rupee are adding to the Indian confidence. |
