According to Cardiff. Com (June 29th) Two professors from Massachusetts Institute of Technology and Harvard Business School recently published a research report, arguing that in the long run, India's economic strength will definitely surpass that of China, on the grounds that India has a more modern enterprise system and strong infrastructure, as well as internationally competitive private enterprises and international companies.
The research report, co-written by Yasheng Huang, a professor at MIT, and Tarun Khanna, a professor at Harvard Business School, said that India far exceeds China in terms of available natural resources reserves, which will help India achieve long-term high-speed economic development, but China does not have such conditions.
The research report was published in the magazine FP sponsored by Carnegie Foundation. The article said: "The real question is not where China and India are now, but what will happen to these two countries tomorrow." The article said: "The answer to this question depends to a great extent on how the two countries use their limited natural resources. In this respect, India is obviously superior to China. "
The two professors pointed out in their reports that China and India are obviously different on the road of economic prosperity. China's economic prosperity is largely the result of investment, especially attracting foreign investment, which has made great contributions to the rapid economic development of China. On the other hand, India is different. India's economic growth is an intrinsic and natural growth, which is largely the result of the growth of domestic companies, especially private companies.
The report said: "How can we find a shortcut to economic development? China's answer is to attract foreign investment, and many official scholars agree with this view. But comparing India, we can find that attracting foreign investment is obviously not the only means to achieve economic prosperity, or even the most effective means. " The report said: "India's financial and capital markets are very healthy, which has also benefited domestic enterprises."
Although the trademark "Made in China" can be seen everywhere, it is not easy to find a product made entirely in China in a department store. China's manufacturing industry is to a great extent a kind of feed processing, or just assembling imported semi-finished products. A large number of home appliances and mechanical and electrical products are exported in China, but core components still need to be imported.
The report said, "It is very shocking to find a China company that sells its products in the international market." According to the report, China's export-oriented development strategy for many years has promoted the prosperity of domestic manufacturing industry, but this prosperity is largely driven by foreign direct investment (FDI). Foreign businessmen set up production bases in China and then sell their products overseas.
The great development of foreign direct investment has squeezed the development space of domestic companies to some extent.
The report said that the Indian government has created a healthy and safe development environment for domestic enterprises, which is conducive to the development and growth of private enterprises. At present, there are many internationally influential companies in India, which can be on an equal footing with big companies in the United States and Europe on a global scale. China didn't.
Professor Khanna and Professor Huang said: "Infosys, Wipro and Ranbaxy are internationally renowned large companies, which have unparalleled competitive advantages in the knowledge-based information industry and biopharmaceutical industry. In addition, India has famous laboratories like Dr. Reddy's. "
According to the report, India also has an indispensable capital market for modern enterprise system, which is more efficient and transparent than China. Moreover, India also has a sound legal system, which is more advanced than China. The report also compares the political system and national spirit of China and India.
The two professors concluded: "Perhaps overall, India's economy is not as good as China's at present, but in some key areas, India is obviously much better than China." The report said: "It may not be long before India's overall economic strength will surpass that of China."