Expressindia.com (India): India moving closer to China: “Moreover, India’s growth rate is close to that of China despite having a high disparity in savings. These were some of the comparisons tossed up at a panel discussion at the Global Scenario 2025 organised here by Shell on Friday.”: Posted Sunday 11 December 2005

Corporate Bureau/ The Financial Express

Mumbai, December 10: If you ever had any doubt about India’s growth capability, then it’s time you dumped the notion, hook, line and sinker.  

While India’s economic growth is reaching new heights, Gujarat is the state to watch out for, and could be very much like Germany in terms of prosperity by 2025.

Moreover, India’s growth rate is close to that of China despite having a high disparity in savings. These were some of the comparisons tossed up at a panel discussion at the Global Scenario 2025 organised here by Shell on Friday.

Reliance chairman and managing director Mukesh Ambani foresees Gujarat being equal to Germany, considering the state’s growth potential. Earlier, Gujarat Chief Minister Narendra Modi had said the state was no more competing with other Indian states, but with China in terms of economic growth.

Drawing a parallel between India and China, Ambani said aspiration of democracy for Chinese people and the bumpy road ahead for growth could act as a deterrent to the progress of China, unlike India.

Putting forth his view, Godrej group chairman Adi Godrej said India’s growth rate was 80-85 per cent that of China despite a savings rate being only 60 per cent vis-a-vis the latter. He, however, pointed out that reforms in indirect taxes were critical as India has a high incidence of indirect taxes, unlike China.

However, Tata Sons executive director R Gopalakrishnan observed that the country as a whole, was finally getting its act right. Earlier, Royal Dutch Shell plc vice-president (global business environment) Albert Bressand spoke at length about the structural changes likely to take place in energy security in the 21st century. Mr Bressand pointed out that three major discontinuities are summarised in three terms viz. re-linking, energy security and carbon. Speaking on re-linking, he said there is a new relationship between oil demand and economic growth, wherein a ‘global middle class’ is now knocking on the door of prosperity, with energy being a fundamental enabler.

Way to go

• Gujarat is the state that all eyes are on

• Lack of democracy in China a major deterrent

• India's reforms in indirect taxes dubbed critical

• New relationship emerging between oil demand and economic growth

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