India way ahead of China in service sector growth: Bai Xuezhu, director of research, CELAP
India is way ahead of China in terms of growth in the service sector. Factors accelerating the future of Chinese economic development is a large labour source and vast domestic marjet, market mechanism, political incentives, public services and facilities etc. China's target is an inclusive growth of 7-8% GDP growth for the next five years where India can play a large role.
This was stated by DrBai Xuezhu,director of research, China Executive Leadership Academy (CELAP). He was speaking at a seminar fielded byCII in Kolkata to create awareness about the latest developments in China and emerging business and investment opportunities for Indian businesses. He gave an overview of China's economy and its growth. Discussing extensively about China's next five year plans, he said China is a transitional economy and society, and is experiencing multiple transitions. Average growth has been 9.5% from 1978 to 2010, population growth 1%, with a rise of 8.5% per capita output over the same period. During 1979-2008, GDP growth was at an average annual pace of 9.5%. He identified some common grounds between India and the need for rapid urbanisation and poverty reduction. Incidentally, China has now become India's largest trading partner with more than US$60 billion worth goods traded last year. Indian and Chinese companies are setting up operations in each others' countries and in some cases, to serve their global markets. Yu Ping, vice-chairman, China Council for Promotion ofInternational Trade (CCPIT), spoke about the tremendous potential and opportunities both countries harbour. As far as bilateral trade goes, China is India's largest trade partner, while India is China's fourth largest trade partner. The main aim of the two nations should be to develop a win-win cooperation. In the next five years, China will focus on reconstructing its economy and shift from an export-oriented approach to a more inclusive business strategy. Labour resources and a huge market are the similarities between India and China and both must benefit from each other. Agriculture, IT, dairy products, tea and pharmaceuticals are some areas in which India scores over China to an extent. There is a huge demand of energy in both the countries. So, in future, chances of bilateral trade are aplenty. Zhang Lizhong, consul general of China, Consulate General of China in Kolkata, emphasized on increasing communication between China and Kolkata. Economic challenges must be addressed by both nations which have the potential to become world's leading nations in future, Lizhong said. R K Agarwal, deputy chairman, CII eastern region, also spoke at the seminar.
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