New Delhi, May 11: China’s state-controlled media on Thursday warned the country about the ‘explosive’ economic growth of India and asked to take New Delhi seriously in economic competition. According to a Chinese think-tank, may become a “bystander” to watch India’s success if it doesn’t take economic competition from New Delhi seriously. The remarks were based on a study on Indian economy by Chinese private strategic think tank Anbound which was carried by the Global Times, the Chinese Communist Party’s newspaper on international affairs.Also Read - Delta Globally Dominant Covid Strain, Now Spread To 185 Countries: WHO
“As China’s demographic dividend diminishes, India, with half of its population below the age of 25, is poised to take advantage,” said Chinese private strategic think tank Anbound. Pointing to Chinese economic slowdown which last year grew to 6.7 per cent in contrast to India’s estimated GDP of 7.1 per cent for 2016-17, excerpts of the report said “just as what happened with China in the past, the changes that are taking place in India may also point to great potential for development”. Also Read - African Swine Fever Grips Tripura as 28000 Pigs Dead in 11 Districts Since March
“With a large population of young people, which is not only the labour force but also a potential consumer group, India has the possibility of seeing explosive economic growth in the future. Therefore, we must pay close attention to the development of this unfamiliar neighbour,” it said. Also Read - China Evergrande: What Led To Debt Crisis and Why Thursday Is Crucial
Referring to a question raised by one of its researchers that by “imitating, India may turn itself into China 2.0, and let global investors decide whether to invest in China or India” it said, “while Indian GDP may lag far behind, it remains a potential emerging market that has high attractiveness for global capital”.
“A survey by Ernst and Young (EY) ranked India as the most attractive investment destination in the world. Among 500 executives from multinational companies involved in the survey, 60 per cent considered India one of the top three investment destinations in 2015. The country’s vast domestic market, low labour costs and skilled labour market are its most attractive features,” it said.
It also mentioned Prime Minister Narendra Modi’s efforts to boost the usage of clean energy over fossil fuels by building massive solar parks and is targeting USD 100 billion in investment in solar energy in the next five years, with the backing of loans from the World Bank. “No other country could compete with India in supporting investors in the solar economy. It should be pointed out that China has not conducted enough studies on India. From the perspective of think tanks, China cannot wait until India grows into an apparently promising competitor before discussing how to deal with the situation,” the report cautioned.