India's public sector inefficient and impotent: Chinese daily
India's public sector is "inefficient and impotent", a state-run Chinese daily has said, even as it praised the neighbouring country's private sector for successful promotion of entrepreneurial spirit.world Updated: Oct 12, 2012 02:39 IST
India's public sector is "inefficient and impotent", a state-run Chinese daily has said, even as it praised the neighbouring country's private sector for successful promotion of entrepreneurial spirit.
"India is plagued by its inefficient and impotent public sector", letting down its entrepreneurial spirit, an article in the ruling Communist Party-run Global Times said, comparing the progress made by the two Asian giants in the past decade.
But the article also acknowledged India's success in the private sector, saying that is something China could learn from.
"In comparison, India does not need to worry so much about the development of the private sector and entrepreneurial spirit, which are the key to innovative activities", the article said.
"Some researchers have pointed out that Indian entrepreneurial and managerial capital has been more successful than China's, especially in taking control of and managing assets in the sophisticated markets of Europe and the US", it said.
The article, published ahead of next month's key Congress of the Communist Party which would select a new leadership said that despite some commonalities, China is way ahead in terms of per-capita GDP which was achieved with par lower costs than that of India's.
"Despite their commonalities, the two are diverging in development paths and have fostered different comparative advantages for economic growth," the article said.
"There is actually a great gap in terms of GDP per capita between the two countries, with USD 5,414 for China and USD 1,389 for India as per IMF figures," the article pointed out.
"Although the Indian economy has been staying in a high growth track, its achievement was attained with higher costs compared to China. India's debt to GDP ratio is now over 70 per cent, accompanied by over 7 per cent inflation. China has performed better in many macroeconomic indicators, with even higher growth rates", it argued.
"More than 50 per cent of Indians are still working in the agricultural sector, which means it needs further efforts to transform itself into a modern industrialised or post-modern service-led economy. Therefore, we can say that in economic terms India still lags far behind China", it added.
The article pointed out that China's urban population has crossed 700 million mark this year over taking those from the rural areas.
It also said backwardness in infrastructure has emerged as a critical bottleneck for India.
"We can discover the place for China and India to work together. They can learn from each other's experiences or lessons and forge their respective road toward sustainable growth. The dragon and elephant can dance together, even if in different ways", the article said.