Will India’s population boom lead to economic boom like it did in China?
India and China have the largest populations in the world and immense geographical trade advantages. China’s boom was spurred by the “demographic dividend” of the great population boom of the 1950s-1970s. As China’s population dividend tails off experts now look to see if India will replicate the phenomenon. With almost 50% of the population under 35 the labor force and the potential market are certainly young and dynamic. Can India use this advantage like China did and experience massive economic growth in the next 20 years?
Take a look at M+V’s new infographic. We compared key economic factors for China and India to help companies make strategic investments.
China’s merchandise exports are almost the same as India’s GDP. Even a 10% shift from Chinese exports to Indian exports would imply over 75% increase in Indian exports. India develop a strategy and vision for itself and the world to make this a reality. Its recent tepid export performance suggests that investment from large global companies is the transformative path for India.
For the first time in two decades, India has been getting more foreign investment than its neighbour China. In 2018, India saw more than $38 billion of inbound deals compared with China’s $32 billion, buoyed by stable fundamentals, a bankruptcy code and fresh opportunities in sunrise sectors.
India’s foreign direct investment (FDI) was the highest ever with 235 deals amounting to $37.76 billion in 2019-19, according to data from Dealogic, a global M&A and capital markets data provider, beating China, which has historically been the favourite for emerging market bets.
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