India Vs China - revisited

In the wake of the ongoing Commonwealth games 2010, here is a nice article on how India and China are poised as the favorites for investors all over, and how they will fare in the longer term.

I agree with the writers view that India will grow faster than china in the coming few years, and I believe stronger governments at the center can even accelerate this process. If we are able to cross the hurdles of corruption and bureaucracy faster, we can beat China even in its size.

The CWG games ironically, will add a lot of impact to India's GDP (close to 4B USD) in the next 2-3 years and will create close to 2.5 million jobs. (Read economic times article)

http://www.economist.com/node/17147648

A quote - " ..... most foreign investors would probably pick China. The market is bigger, the government easier to deal with, and if your supply chain for manufactured goods does not pass through China your shareholders will demand to know why. But as the global economy becomes more knowledge-intensive, India’s advantage will grow..... "

Reference :

Economist article 'India's surprising economic miracle' - 30th Sept 2010

http://www.economist.com/node/17147648

Economic times article

7/10 Asian small-cap funds are Indian