Transcript Infrastructure and Sustainable Growth: Should India and China be

INFRASTRUCTURE AND SUSTAINABLE GROWTH:
SHOULD INDIA AND CHINA BE WORRIED?
Team Formation
Antonio Varela
Laura Mundy
Patrick Nolan
Tejaswi Javagal
The Question..???
 Will India and China Keep Growing at the
same pace ?
 Will the Infrastructure be able to keep up?
 Sustainable growth?
A comparison - Similarities
 Worlds leading and richest at one time
 Reemerging as world powers
 strong external positions
 low external debt
A comparison - Differences
China
India
Manufacturing
Services
Export driven
Domestic Consumption driven
Single Party Rule
Multi Party Democracy
Liberalization started in 1979
Liberalization Started In 1991
Recently Included Into WTO
Founding member of GATT/WTO
GDP Growth Rates
India
India China
China
International Monetary Fund
Inflation rates
India
China
China – Roads & Expressways
 1.71 million kilometre
 adding more than a million kilometres since
1979.
 19,000 kilometres of Expressways
China – Railroads
 102,000 kilometres of operating track
 24,000 kilometres electrified
 carried 12billion passengers
 3.7 billion tons of cargo.
Problem - China
 Inadequate infrastructure
 Heavily government dependent
 Not able to cope with the growth
China -Solutions
 Include Private investors
 Develop alternate destinations
 Leverage its manufacturing powers to grow
in services
India – Roads & Railroads
 96,000 Kilometers
 20,000 Kilometers highways carry 40% of
traffic
 62,500 Kilometers
 Fourth heavily used system
 Carries 2/3 rd of freight
Problems
 Severe infrastructure bottlenecks
 Lack of quality Infrastructure
 Low spending on Infrastructure due to high
government debt
Solutions
 Increase Infrastructure spending
 Public - private partnership
 Share the risk
 Speedy approvals
 Cut red tape
 Incentives to invest
 Develop alternate investment destinations
 SEZs
Composition of GDP
The best approach
China : Manufacturing
Services = Opportunity
Policies supporting IT/ Services
India
: Services
Manufacturing = Opportunity
SEZs
Who ..??
 China:
State
=>Opportunity for private sector
 India:
Private Enterprise
=> Improvements in State capacity
Conclusion
 Conditional Yes …!!!!
QUESTION(S)…???