Magazine article The Wilson Quarterly

Asia's Other Giant

Magazine article The Wilson Quarterly

Asia's Other Giant

Article excerpt

Foreign investors rushing to take advantage of economic opportunity in China in recent years have barely paused to notice Asia's other population giant, India. That neglect is not likely to last, contend Manor, a Professorial Fellow at the Institute of Development Studies, University of Sussex, Brighton, and Segal, director of studies at the International Institute for Strategic Studies, London.

With a population (900 million) three-fourths the size of China's, India has an economy that is still only a little more than half as large: $225 billion in gross domestic product in 1993, compared with China's $425 billion. In 1996, India received slightly more than $2 billion in foreign direct investment - while China raked in $38 billion. Eighty-five percent of the money poured into China from abroad comes from ethnic Chinese, and India has no equivalent diaspora.

However, India's foreign investment total is roughly what China's was in the early-to-mid-1980s. After China launched its economic reforms in 1979, the authors point out, it took five to seven years of sustained economic growth before the outside world saw "that China was serious about reforming its domestic economy and opening to the rest of the world." Much the same, they say, may prove true of India, which - after decades of socialism and of shunning foreign trade and investment - embarked in 1991, under then-prime minister P. V. Narasimha Rao, on a path of economic reform. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.