DIGINEWS360 Economics India Z. Right Column

China and India: The Next 20 years

Tuesday, Dec 6, 2022: Leadership of Xi Jinping and Narendra Modi

December 6, 2022: Xi Jinping is called the “Great Accelerator”.

Xi Jinping’s dream:

  • Rejuvenation of China
  • Leading mankind to a common Communist destiny
  • Making China the sole Super-Power militarily through dvanced military, space and nuclear programs consisting of hypersonic missiles, stealth aircraft, robotics et al backed by hi-tech systems like AI and Cyber-technology  
  • Unification of Taiwan
  • Capturing all the area that it claims along Sino-Indian border

India:

  • Remove poverty
  • Cleaner India
  • Highest quality of infra-structure
  • Improving education through National Education Policy
  • Imprving the quality of armed forces through Atma Nirbhar campaign

India has to work to solve issues, which have been largely already solved in China.

DEMOGRAPHIC DIVIDEND

Both the countries are losing the Demographic Dividend through having progressively larger number of young persons:

China: The Three-child policy, to mitigate the effects of 1-child policy of Deng is not working out. The number of young persons graduating in 2039-40 may reduce to 5 to 6 million by 2039-40 from 10.67 million in 2022.

India- The fertility ratio has fallen to a little above 2.2 when replacement without contraction in population requires the fertility ratio to be 2.1.   

GLOBALIZATION:

China has reaped benefits of globalization. It has become WORKSHOP of the WORLD.

Now it will face the effects of De-Globalization due to

  • Pandemic related supply chain disruptions,
  • geo-strategic economic re-alignments,
  • Xi’s assertiveness,
  • Ukraine war and 
  • Reduced demand due to Global inflation

Indian businesses have to learn to globalize faster in an environment, where the world’s trade may be contracting. The question is whether Indian businesses and universities learn to globalize fast 

  • through technological progress and
  • through acquisition of knowledge of world’s markets.

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