原文标题：India can grow like China if domestic issues settled: Nick Bloom
The share of manufacturing in India’s gross domestic product can go up to 30 per cent if the country implements labour reforms and relaxes regulations, according to Nick Bloom, professor, Stanford University. He tells Dilasha Seth in an interview that India could grow as fast as China if the country sorts out its domestic challenges. Excerpts:
With India’s economic growth down to 5.3 per cent in Q2, what are the deterring factors according to you.
Domestic issues are India’s real problems rather than external ones. So my analogy is like, India is like a boxer with a hand tied behind its back. The government has tied the hand behind with labour regulations, permits, licensing, etc. So, if the second hand is unleashed, then India can grow faster.
Imagine that you are a businessman, and want to open a factory. It is really hard with so much of regulation, so you move to Singapore, Hong Kong or US.
Are you saying that if India addresses these domestic hurdles, it can tread a high growth path like China?
If the domestic issues are sorted out, India’s growth rate could be at least as fast as China. The government could increase growth by getting rid of most of these regulations.
India’s growth rate is lower than China’s, as China is a more free market. There are much less labour regulations and the rule of law is very strong.
So what can drive India’s growth in the medium rate is going to be how much the government can do to push through the retail FDI (foreign direct investment) and the land acquisition Bill.
The manufacturing sector has been a drag on the overall economy…
India has a very small manufacturing sector. Every country around the world, which have achieved a massive growth rate, is through manufacturing. No one has really been able to achieve high growth like agriculture to services.
The National Manufacturing Policy aims at increasing the share of manufacturing from 15 per cent to 25 per cent in the next decade. Do you think that is doable?
India’s labour is way cheaper than China’s. So people are moving out from southern China to inland parts of Indonesia. They would happily invest in India and India’s share in manufacturing could possibly go up to 30 per cent if it eases the labour regulations, allow FDI and ease the licence procedure.
If I am a big multinational company and thinking where to set up my factory, I think of two options – India and Vietnam. India has cheaper wages than Vietnam, but Vietnam is a lot of relaxed place. There is some corruption, but I can get my way and run my basic business.
But if I go to India, I would sign a partnership with the government and I am worried about the uncertainty. I think there is a huge pool of people who wants to invest over this side. If you see the amount of money pouring over Vietnam and Indonesia and China, a part of that could come to India.
What a joke !!!!
by ASHEESH KUMAR
India competing with China ? There is no contest at all. Please do not waste our time on such articles.
india mental setup is not like that of china, here everybody is leader and starts agitation know and then. we have choas freedom.
I have been saying this all along
by French Cuisine
Less regulations and more production. Two things this article misses out – less govt/political involvement in our economy and more savings. Invest–>produce–>save. We can outproduce the whole world if we are willing – this coupled with innovation will make India into a gigantic superpower.
by MOON MOON
Its already started, with the govt lathicharging its own peacefully protesting citizens.
Re: No Problem
by Ramdas Nayak
Don’t blame govt. police are not dogs to run away if you stone them. they just retaliated.
by gaurang patel
stop corruption, hang those who do it…then no one can stop us from economic progress at 10% above rate…
Re: stop corruption
by Ramdas Nayak
The real problem is, if you hang them all, there will be a very few left in this country to manage.
Eliminate these from india
Corruption, Cricket, Hypocracy, Regionalism.. and start comparing with China rather than Pakistan.. india always compare itself with a failed nation Pakistan.. even in sports.
by Rajiv Shivashankar
India can grow like China, faster maybe, if we have more sensible politicians and less of the loony lot. The professional lot is also a hindrance to growth, guys like Chidamabaram,
Re: Indian politicians
The biggest hindrance is Sonia and her lackeys.
Difficult to catch up CHINA
by partha sharma
The biggest asset of Indian public – ELECTION – is hindrance in growth. Indian Democracy and Election creating all nonsense products such as CORRUPTION, RELIGIOUS POLITICS, CASTE BASED POLITICS, UNSCRUPULOUS BUSINESSES etc. etc….
Indian JUDICIARY is almost biased towards influential. Anarchy everywhere …. No proper decision and implementation are taken…,
resulting POOR GROWTH…. Difficult to catch up CHINA.
India imagining that it can grow like China is
exactly akin to the bullfrog imagining that it is as big as the bull !
Re: India imagining that it can grow like China is
Japan has less than 1/100 population , land and resoruces to China
but economically its much stronger
Under stronger leadership every thing is possible it wont take more than 10 yrs to bring the change
Will is required
MARKET ECONOMY = CORRUPTION
“There is some corruption, but I can get my way and run my basic business”.
Actually you get your way THROUGH CORRUPTION. Corruption in Indian is bred by the Corporates. This prompted the Central Vigilance Commission (CVC) of India to demand that Corporates be brought under the purview of Lokpal bill.
by Dhruba Sarma
I’s pathetic the way Indian journos try and measure India-China parity in developement as if the two countries are neck to neck competitors . They are not . Chinese are torally different people from Indians . China is way way ahead of India in every field from the sports ground through factories , technology , space , to the battlefield . Rather India concentrate on bucking up on these aspects without looking over the fence .
Why compare with China?
by Rajendra Nayak
India has its own merits and demerits. Although there is democracy in books there is no democracy at the ground level. China has no democracy at all but still surging ahead because there is a will power to excel induced by the state.
Here the politicians themselves do not use Indian goods but talk of national pride. They go outside for surgery even though the Indian doctors are experts.
We have to compare ourselves with small nations first and then a giant like China. Until the politicians change India will sink as a Nation in history.
india govt and police only like hafta or bribes to function
Hafta or Bribes is the only instrument that gets the job done. Even a death certificate needs hafta to be paid, or you will die too waiting for the certificates you are asking.
India and China
by kumar kn
India can grow like Chine if we have leaders like China has.Most of the Central Committee members are Engineers with US degrees and experience.They are all committed to a Vision to make China equal to US within a time frame.The leaders in China perform and if they fail they have to go home. Here there is no Vision or Performance.Corruption is rampart and our uninspiring PM says he did not know anything.He takes no responsibility for anything.Now compared to a CM with a good track record we want to project an inexperienced person with no knowledge in any field as the future PM. Tell me, how can India compete with China?
Re: India and China
But the paramount reason why China is able to get its common citizens to be fiercely committed to all round growth and the overall good of the nation is that it has taken very good care of basic human development requirements. Just as in many other areas, China leads India by light years in every human development parameter!
This is precisely why China’s citizens in general are much more proud of their nation than Indians despite virtually being an autocracy!!
TO ACHIEVE FASTER ECONMY GROWTH
by ch krishna
the political system needs revamping,i.e making the patriotic and young people to contest elections who will serve to the nation not as politicians but as real lovers of nation growth and solve peoples problems in nook and corner where people suffering poverty, lack of education, in health, not grasping policy benefits, injustice,