Economist.com: http://www.economist.com/node/17147648
On October 3rd, 2010, the 72-nation Commonwealth games have been held in New Delhi, India. However, India`s hosting haven`t won good reports; horrible toilet, collapsed walls, and lax security. A big sporting event often tells you something important about the hosting nation, but they can`t because they don`t have afford to do so. On the other hand, India`s economy is expected to expand 8.5% this year and its growth rate is expected to overcome China`s within next 3 years. Even some economists think India will grow faster than any other large country over the next 25 years.
There are two reasons that India`s growing ratio would overcome China`s. The first reason is demographic dividend. China is keeping one-children policy, so China`s workforce will start shrinking. India government tried similar policy in 1970s, but it failed because of uproar protest, so India is now facing a young and growing workforce. India`s dependency ratio is one of the best in the world. The second reason is mocked democracy. It retards development in poor countries, because elected government often bows to a group which has big powers. China also has this advantage. their leaders make rational decisions that balance the needs of all citizens over the long term. This has led to rapid and sustained growth. India`s state may be weak, but its private companies are strong. India boasts legions of thriving small businesses and a large number of world-class businesses. They are less dependent on state and often more innovative. Ideas flow easily around India, because it doesn`t have culture secrecy and censorship. In addition to this, there would be no rampant piracy. This is why knowledge-based industries love India. India`s individualistic brand of capitalism may also be robust. On the other side, there are some problems for future, which are bad conditioned roads, public transport disgrace, and water-treatment plants.
The Indian government recognizes the need of infrastructures and it is getting better because of private firms efforts. But the process is very slow and infected with corruption. Which do you choose China or India if you doing business. Most of you choose China because of the big market, But as global economy more knowledge-intensive, India`s advantage would grow.
I think India is more attractive market than china. There are three reasons I think so. First one is demographic dividend. It is very important to consider about future`s business. Second one is language. They use English in their living and speak very well. English is actually the common language especially in business. Third one is their ability of math. In IT industries math is very important. In those reasons I would choose India. Which one would you choose?