India vs China Economy: The secret of getting ahead of China is hidden in the beating from Corona! Know what is the reality – how india overtakes china to become world’s fastest economy answer lies in covid pandemic
[ad_1]
From the financial year 2021, India remains the fastest growing major economy in the world. According to IMF data, India’s GDP growth in 2021 was 9.1 percent and in 2022 it was 6.8 percent. In 2023, it is expected to grow at a speed of 5.9 percent. When the Corona pandemic (Covid-19 pandemic) stopped the pace of the world in 2020, India was hit the most. But China’s economy grew well in the year 2020 as well. The decline in India’s GDP reduced the base for the calculation and on this basis accelerated its growth for subsequent years.
The magic of the lower bass effect
In the financial year 2020, India’s economy declined by 5.8 percent while China’s economy grew by 2.2 percent. The next year, the economy of both the countries picked up. China’s economy grew by 8.5 per cent while India’s GDP grew by 9.1 per cent. But in 2020, due to the lower base, India’s pace was high. This base effect also influenced subsequent growth calculations. If we look at the growth rate of 2019, then this irregularity can be removed. Everything was normal in the year 2019. After 2019, China’s average growth rate for the next four years was 4.7 percent, which is the highest among large economies. India’s average growth during this period was 3.8 per cent.
China is the second largest economy in the world after America. The size of its economy is five times more than that of India. If seen in dollar terms, China’s growth rate was much less than that of India, but its net addition was more than that of India. With a growth of 10.3 per cent in dollar terms, India added only $350 billion to its economy while China added $1,274 billion with a growth of seven per cent. India would have to grow at a rate of 37.6 per cent to add such a huge amount to its economy. India has the lowest per capita income among major economies. China’s per capita income is five times more than that of India.
[ad_2]
Source link
