India vs China – A Bird’s Eye View
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Recently I can across this amazing blog post by Mr Sujai Karampuri, CEO, Sloka Telecom (It’s an Indian startup in the telecom sector). It is one of the new breed of companies in India Inc who actually innovate and not provide services to the west.
His post addresses an answer to one of the most common topic these days,
India is rising, India will be a superpower in the next 10 years, west is going down, India has an edge over China with it’s English speaking people etc.
But is India actually in a position to take over the west? Can it manage to transfer the center of gravity of the worlds largest companies (Like MSFT, CISCO, IBM) to India and itself start new ones?! I don’t think so with our corrupt politicians, lack on (More …)
AD are discussing. 
Beijing most significantly counted on massive credit growth to spur the economy. The amount of new loans made in 2009 nearly doubled from the year before to $1.4 trillion – representing almost 30% of GDP. The stimulus plan worked wonders, holding up growth even as China’s exports dropped 16% in 2009.
But now China is facing the consequences of its largesse. Fears are rising that Beijing’s easy-money policies have fueled a potential property-price bubble. According to government data, average real estate prices in Chinese cities jumped 7.8% in December from a year earlier — the fastest increase in 18 months. The credit boom has also sparked worries about the nation’s banking system. Many economists expect the large surge in credit to lead to a growing number of nonperforming loans (NPLs). In a November report, UBS economist Wang Tao calculates that if 20% of all new lending in 2009 and 10% of the amount in 2010 goes bad over the next three to five years, the total amount of NPLs from China’s stimulus program would reach $400 billion, or roughly 8% of GDP.
India, meanwhile, isn’t experiencing nearly the same degree of fallout from its recession-fighting methods. The government used the same tools as every other to support growth when the financial crisis hit – cutting interest rates, offering tax breaks and increasing fiscal spending – but the scale was smaller than in China. Goldman Sachs estimates that India’s government stimulus will total $36 billion this fiscal year, or only 3% of GDP. By comparison, China’s two-year, $585 billion package is roughly twice as large, at about 6% of GDP per year. Most important, India managed to achieve its substantial growth without putting its banking sector at risk. In fact, India’s banks have remained quite conservative through the downturn, especially compared with Chinese lenders.
I think this should probably give u little hopes about india’s future…yes china has an edge in certain sectors..but u cant deny india’s strength like pharmaceuticals etc..