China and India are two states with great prospects for economic growth. Researchers believe that in the next two decades, both states will be among the main economies in the world in terms of industrial growth. But the bright prospects, however, are associated with some obstacles and difficulties of development.
China as the future world leader
One of the negative factors that can affect the development of modern China is a shortage of labor and an aging population. The advantage of China's economy is its export orientation, low labor costs and a high share of investment in the economy. The latter circumstance is explained by the leading role of the state in economic activity, which is supposed to continue in subsequent years.
China compares favorably with those countries that are commonly called developed: local authorities and state corporations play the main role here. However, experts consider the Chinese economy resource-intensive and not focused on innovation. The lion's share of innovative products is produced in the sector associated with foreign investment.
The technological level of the Chinese economy is growing steadily, although it has not yet been possible to overcome the extensiveness of this growth. The possible reasons for the slipping, researchers see China's dependence on imports of raw materials and energy. Another negative factor is the rising cost of labor and its shortage.
The birth control policy in China leads to a significant population aging in the country, so few young people come to the economy.
The rapid development of the economy is accompanied in China by the growth of environmental problems. This country is today considered the leader in soil, air and water pollution. Even if China pays attention to these problems, it will require serious investments, which will mean a rise in price of products and, accordingly, reduce its competitiveness. Nevertheless, even if the economic situation worsens, the country's internal potential will remain sufficient for China to claim the role of world leader.
India: "portrait" against the backdrop of modernity
India is located next to China and has a common border with it. The population of this country is only slightly inferior in population to its mighty neighbor. The modern economic model implemented in India is unique in its own way. Here the lines and features of the development of developed, capitalist and socialist states came together.
Such a bizarre combination gives India certain advantages, allowing it to quickly adapt to trends in the global economy.
Today, India remains largely overpopulated, a poor country with a high level of illiteracy and unemployment. The other side of India is active economic activities based on five-year plans, the desire to develop infrastructure and the social sphere. The basis of life in the country is established private property, a relatively developed stock market, and well-established democracy.
What are the hallmarks of the Indian economy? The state plays a very large role in all areas of society. There are a large number of large public and private corporations. Small enterprises, which are abundant, are more focused on the service sector. The economy of India is largely focused on high-tech production and information technology, which allowed the country today to take its place in the international division of labor.
A significant achievement of India, which is able to advance it among the most promising states on the planet, should be considered a high level of science and higher education. Against the background of the widespread use of English in India, this factor may become decisive for gaining first positions in the global economy.
The future of India as a leading world power will depend on the internal strength of the state. The current state structure of the country is based on centuries-old traditions and the strength of the Indian community, the establishment of which is not always consistent with constitutional provisions. Much will depend on the desire and ability of the ruling elites to find a balance between the various levels of Indian society.
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