There’s no reason why India shouldn’t achieve double-digit annual growth rates and join China as an Asian economic superpower, Steve Forbes wrote in his namesake publication this summer. Miles Kimball of Quartz even argued we should all “really want India to join the US and China as a superpower”.

But in what economic areas could India catch up China in the next few years? Click http://www.letzgist.com/index.php/2015/10/04/economic-superpower/ to view the following chart breaks it down using data from the latest Global Competitiveness Report.

1. Market size



As it currently stands, India is already a economic superpower when it comes to internal demand. According to the Global Competitiveness Report, India has the third largest market size – behind China and the US, but ahead of other regional economic powers such as Germany, Japan and Brazil.

But India does have some catching up to do if it wants to surpass China and the US. Both countries have a GDP, measured according to purchasing power parity, of about $18 trillion. India’s, at $7.4 trillion, is still much smaller.

That said, India’s growth rates will almost certainly surpass China’s this year. “With an expected growth of 7.5% this year, India is, for the first time, leading the World Bank’s growth chart of major economies,” Kaushik Basu, World Bank Chief Economist, recently said.

2. Financial market development

India and China are also close contenders when it comes to their financial market development, coming in at 51st and 54th place respectively in the Global Competitiveness Report rankings.

Both countries have been making great progress in recent years in the availability of venture capital. For example, both China and India have doubled their share in global venture capital in recent years: China jumped from an average of 9% before 2014, to 18% in 2014; India progressed from 3% to 6% in the same period of time.



Both India and China have also seen their stock market capitalization increase dramatically in the last decade (source: World Bank). India’s stock market tripled in size from 2002 to 2012, China’s almost quintupled, and has more than doubled in the last three years.

In June, total Chinese stock market capitalization stood at some $10 trillion, making the Chinese stock markets the second largest in the world, behind only the US. And it overtook India, historically one of the hottest stock markets in the emerging world, with its market cap to GDP ratio.

But as recent news reports have shown, there’s been volatility in the Chinese stock market, with the SSE Composite Index in Shanghai losing almost 40% since June. Meanwhile, India’s star index in Mumbai, on the other hand, has been more stable in recent times.

3. Health, education and work

In other key competitiveness rankings, such as health, education and the labour market, India falls far behind China. In fact, in many areas, it even falls near the bottom of global rankings.

In health and primary education, for example, India comes in at 98th of 144 economies, whereas China sits in 46th place. In higher education, India stands at 93rd, with China ahead in 65th. And in terms of labour market efficiency, India does not even make it into the top 100: it stands at 112th out of 144 measured economies; China finishes 37th........ for the full gist click Click http://www.letzgist.com/index.php/2015/10/04/economic-superpower/

With China's decline this year, India has an opportunity to overthrow China as an economic power house! Many foreign businesses are moving from China to India!

Nigeria has the potentials those two nations harnessed to make them a superpower!
Lack of direction and poor policies and leaders are killing us!

An economic superpower Nigeria will shake Africa! I don't know why our leaders haven't realised that!

Yes! If the will is there!!

sylvalord:
Dude you are detailing. The topic is if India can become an economic superpower and not about how nigeria is not harnessing her resources.

Hope you read my first paragraph!