India To Maintain Its Economic Lead Over China For Decade To Come

न्यूज़ वर्ल्ड इंडिया | 0
| July 9 , 2017 , 16:15 IST

According to a new Harvard study, India has emerged as the economic pole of global growth, surpassing successor China, and is expected to maintain its position in the lead for decades to come.

The projections of Harvard University's Center for International Development (CID) have suggested that India will lead the world in terms of fastest growing economies till 2025 with an average annual growth of 7.7 percent, for a number of reasons.

Harvard University’s CID is a university-wide centre working to understand and advance the development challenged faced around the world and provide a viable solution to problems of global poverty.

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The CID research suggested, “The economic pole of global growth has moved over the past few years from China to neighbouring India, where it is likely to stay over the coming decade.”

It added, “The major oil economies are experiencing the pitfalls of their reliance on one resource. India, Indonesia and Vietnam have accumulated new capabilities that allow for more diverse and more complex production that predicts faster growth in the coming years.”

Attributing the country’s rapid growth to its diversity, the study said that its prospects to the fact that India is particularly well positioned to continue diversifying into new areas, given the capabilities accumulated to date.

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The projection also pointed out that India has made inroads in diversifying its export base to include more complex sectors, such as chemicals, vehicles, and certain electronics.

The study while accessing the complex patterns of economic growth said, “The countries that are expected to be the fastest-growing - India, Turkey, Indonesia, Uganda, and Bulgaria - are diverse in all political, institutional, geographic and demographic dimensions.”

"What they share is a focus on expanding the capabilities of their workforce that leave them well positioned to diversify into new products and products of increasingly greater complexity," it added.

The study also assessed that developed countries such as US, Germany and Japan have already produced nearly all existing products, so their progress will require pushing the world's technological by inventing new products, a process that implies slower growth.