abhishreshthaa
Abhijeet S
Growth of Service Sector in China and India
The achievements of China's two decades of reforms are regarded as an economic miracle. Its reforms have made it the fastest growing economy in the world. What is remarkable is the rapidity with which it all happened. China’s success story shows how a war-ravaged, communist country with scarce resources could make a miracle happen.
The transformation was possible because china rightly employed its major resource ie the human resource in the productive, manufacturing sector. The Chinese experience clearly demonstrates that the competitiveness does not emanate from mere availability of resources. It emanates when they are put to their best use.
For quality of life to improve, even India we needs to put the emphasis on manufacturing.for agriculture and services to grow, we need more manufacturing. If the domestic industry stops spending, the service industry will find itself in throes of massive overcapacity.
Our efforts to help the service sector are laudable but the manufacturing sector should not be ignored China did have a head start compared to India in reforming its economy but they went about it with great deal of planning.
They invested heavily in the manufacturing sector and created impressive capacities in almost every sector of the economy. True, they had a huge domestic market. But so do we. They were looking at the global market when they created these capacities. They also took their time to get into WTO so that they could practice some amount of protectionism in the intermediate period.
It is more difficult for Indian domestic private firms to grow because they have missed the window of opportunity in the last 15 years. And now they have to compete with Multi National Companies.
That India would have to now develop its manufacturing sector is certain. However, the issue now is whether domestic firms can compete with foreign firms.
The achievements of China's two decades of reforms are regarded as an economic miracle. Its reforms have made it the fastest growing economy in the world. What is remarkable is the rapidity with which it all happened. China’s success story shows how a war-ravaged, communist country with scarce resources could make a miracle happen.
The transformation was possible because china rightly employed its major resource ie the human resource in the productive, manufacturing sector. The Chinese experience clearly demonstrates that the competitiveness does not emanate from mere availability of resources. It emanates when they are put to their best use.
For quality of life to improve, even India we needs to put the emphasis on manufacturing.for agriculture and services to grow, we need more manufacturing. If the domestic industry stops spending, the service industry will find itself in throes of massive overcapacity.
Our efforts to help the service sector are laudable but the manufacturing sector should not be ignored China did have a head start compared to India in reforming its economy but they went about it with great deal of planning.
They invested heavily in the manufacturing sector and created impressive capacities in almost every sector of the economy. True, they had a huge domestic market. But so do we. They were looking at the global market when they created these capacities. They also took their time to get into WTO so that they could practice some amount of protectionism in the intermediate period.
It is more difficult for Indian domestic private firms to grow because they have missed the window of opportunity in the last 15 years. And now they have to compete with Multi National Companies.
That India would have to now develop its manufacturing sector is certain. However, the issue now is whether domestic firms can compete with foreign firms.