China and India are two countries with great prospects for economic growth. Researchers believe that in the next two decades, both countries will be among the world's major economies in terms of industrial growth. But bright prospects, however, are fraught with some obstacles and difficulties in development.
China as the future world leader
One of the negative factors that can affect the development of modern China is a labor shortage and an aging population. The advantage of the Chinese economy is its export orientation, low labor costs and a high proportion of investment in the economy. The latter circumstance is explained by the leading role of the state in economic activity, which, as expected, will continue in subsequent years.
China compares favorably with those countries that are usually called developed: here the main role is played by local authorities and state corporations. At the same time, experts consider the Chinese economy to be resource-intensive and not focused on innovation. The lion's share of innovative products is produced in the sector related to foreign investment.
The technological level of China's economy is steadily growing, although it has not yet been possible to overcome the extensiveness of this growth. The researchers see possible reasons for the slippage in China's dependence on imports of raw materials and energy. Another negative factor is the growth in the cost of labor and its shortage.
China's birth control policies are causing the country's sizable population to age, with few young people entering the economy.
The rapid development of the economy in China is accompanied by an increase in environmental problems. This country is today considered a leader in soil, air and water pollution. Even if China pays attention to these problems, it will require serious investments, which will mean higher prices for products and, accordingly, reduce their competitiveness. And yet, the country's internal potential, even if the economic situation deteriorates, will remain sufficient for China to claim the role of world leader.
India: "portrait" against the background of modernity
India is located adjacent to China and shares a common border with it. The population of this country is only slightly smaller than that of its mighty neighbor. India's current economic model is unique in its own way. Here the lines and features of the development of the developed, capitalist and socialist states converged.
This bizarre combination gives India certain advantages, allowing it to quickly adapt to changing trends in the global economy.
India today remains largely overpopulated, a poor country with high levels of illiteracy and unemployment. The other side of India is active economic activities based on five-year plans, striving for the development of infrastructure and social sphere. The basis of life in the country is formed by established private property, a relatively developed stock market, and well-established democracy.
What are the hallmarks of India's economy? The state plays a very important role in all spheres of society. There are a large number of large state and private corporations here. Small businesses, which are abundant, are more focused on the service sector. India's economy is largely focused on high-tech production and information technology, which has allowed the country today to take its place in the international division of labor.
India's high level of science and higher education should be considered a significant achievement of India, which can put it in a number of the most promising states on the planet. Against the background of the widespread use of the English language in India, this factor may become decisive for winning the first positions in the world economy.
India's future as a leading world power will depend on the country's internal strength. 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 willingness and skill of the ruling elites to find a balance between the different levels of Indian society.
