Post MBA exam results, Group Discussion will be crucial for MBA admission so it is advised to read and practice with variety of topics. In following GD topic you will be getting some points with divergent views which you can pick up and develop. Today, you will read GD topic:
"Can India catch up with China on economic growth?"
Most of the countries look at China as the leader of developing countries since it is the world’s second largest economy, after the US. Numbers don’t lie and it is evident from the 2012 Gross Domestic Product (GDP) results that China’s figures have surpassed India’s numbers significantly. China recorded a GDP of Rs 45,451,000 crores (US$8.3 trillion) and India recorded a GDP of Rs 10,404,000 crores (US$1.9 trillion). Since China is way ahead of India in terms of economic growth, is there scope for India to catch up with China?
Changes in corporate, economic and social conditions and policies on international and national levels provide evidence that there is indeed a possibility for India to catch up with China. In 2011, China increased its minimum wages by 20-30 percent to increase consumers’ incomes and their purchasing power. Hence, low-skilled manufacturing jobs are slowly moving away from China, into other developing countries, including India.
One of the assets that India has and China doesn’t is the proportion of English speakers in the country. Many US and European companies are outsourcing back-office, legal and medical jobs to India to cut costs. At present, India earns Rs 378,603 crores (US$69 billion) annually, which is 25 percent of Indian exports. So, by enhancing the skills of the current workforce, there is a possibility that India can catch up with China on economic growth.
Although in certain aspects, India’s future is looking bright, in many others, it is looking bleak. According to the World Bank, enrolment in higher education courses is a strong indicator of economic growth. When the number of university graduates in a country increases, that country enjoys economic growth in the long run. China will soon reap the sweet rewards of its Rs 1,371,250 crore (US$250 billion) investment in education. Since 2000, China has been increasing the number of institutes of higher learning and over the years, it has increased the enrolment by five times. So, today, 26% of the youths in China are enrolled in institutes of higher learning, a significant difference as compared to 18% in India. Sadly, the Indian government is not investing enough in the education system, impeding the nation’s economic growth in the long run.
If the Indian government changes its education and investment policies, India might get the opportunity to catch up with China on economic growth. However, if things proceed in the same momentum as they are today, China will leave India far behind in the economic race. To reap success, it is important for a country to be forward-thinking and in this aspect, India has a lot to learn from its neighbour.