'Will India Surpass China to Become the Next Superpower?: Four inconvenient truths make this scenario unlikely.'

'First, analysts have been wrong about India’s rise in the past. In the 1990s, analysts trumpeted a growing, youthful Indian population that would drive economic liberalization to create an “economic miracle.” One of the United States’ most thoughtful India analysts, journalist Fareed Zakaria, noted in a recent column in the Washington Post that he found himself caught up in the second wave of this euphoria in 2006, when the World Economic Forum in Davos heralded India as the “world’s fastest-growing free market democracy” and the then-Indian trade minister said that India’s economy would shortly surpass China’s. Although India’s economy did grow, Zakaria points out that these predictions didn’t come true.'

'Second, despite India’s extraordinary growth over the past two years—when India joined the club of the world’s five largest economies—India’s economy has remained much smaller than China’s. In the early 2000s, China’s manufacturing, exports, and GDP were about two to three times larger than India’s. Now, China’s economy is about five times larger, with a GDP of $17.7 trillion versus India’s GDP of $3.2 trillion.'

'Third, India has been falling behind in the race to develop science and technology to power economic growth. China graduates nearly twice as many STEM students as India. China spends 2 percent of its GDP on research and development, while India spends 0.7 percent. Four of the world’s 20 biggest tech companies by revenue are Chinese; none are based in India. China produces over half of the world’s 5G infrastructure, India just 1 percent. TikTok and similar apps created in China are now global leaders, but India has yet to create a tech product that has gone global. When it comes to producing artificial intelligence (AI), China is the only global rival to the United States. China’s SenseTime AI model recently beat OpenAI’s GPT-4 on key technical performance measures; India has no entry in this race. China holds 65 percent of the world’s AI patents, compared with India’s 3 percent. China’s AI firms have received $95 billion in private investment from 2013 through 2022 versus India’s $7 billion. And top-tier AI researchers hail primarily from China, the United States, and Europe, while India lags behind.'

'Fourth, when assessing a nation’s power, what matters more than the number of its citizens is the quality of its workforce. China’s workforce is more productive than India’s. The international community has rightly celebrated China’s “anti-poverty miracle” that has essentially eliminated abject poverty. In contrast, India continues to have high levels of poverty and malnutrition. In 1980, 90 percent of China’s 1 billion citizens had incomes below the World Bank’s threshold for abject poverty. Today, that number is approximately zero. Yet more than 10 percent of India’s population of 1.4 billion continue to live below the World Bank extreme poverty line of $2.15 per day. Meanwhile, 16.3 percent of India’s population was undernourished in 2019-21, compared with less than 2.5 percent of China’s population, according to the most recent United Nations State of Food Security and Nutrition in the World report. India also has one of the worst rates of child malnutrition in the world.'

Link to article:
https://foreignpolicy.com/2023/06/24/india-china-biden-modi-summit-great-power-competition-economic-growth/

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