china's consumer market is much bigger than india's.
china consumes without going into debt unlike india.
most indians are brainwashed by keynesians thinking u get rich is by going into a massive debt based consumption binge by importing all the products and massive trade deficits and 10% budget deficits.
an economy is grown not based on debt based consumption, its based on production of goods, exports, savings and under-consumption.
by under-consumption u dont sacrifice future growth by current growth.
china has done it right as every emerging country that does it, US did it when they were in a developing stage, britain did it.
service sector economies are run by developed economies, not developing economies like india.
developing economies are run on manufacturing and exports to build up ur wealth while not going into debt. u do this until u have a middle class with a huge savings pool and then u develop ur infrastructure, final step its consumption and services.
services are wealth consuming sector.
manufacturing is the wealth producing sector.
u need both, to be a growing and prospering economy while at the same time living within ur means.
indians are living beyond its means by having this ridiculous strategy of debt based consumer society with a service sector economy, they are getting poorer while their gdp is going up as debts must be repaid. thats called living like a king now while sacrificing ur future prosperity. many examples, US, greece, japan.
india is putting the cart before the horse.
indians are too arrogant and too egotistical to understand anyone critisising them.
its called economics 101.
go read the book by peter schiff "how an economy grows and why it crashes".
it explains basic economics brilliantly.
china has gone step by step in the correct development model. from developing, to emerging, to developed/
step 1:
low-end manufacturing, exporting, buiilding up the middle class as jobs increase, thus building up savings pool, under-consuming by accumulating/building wealth, running surpluses.
step 2:
next stage is infrastructure development(transportation, communication, malls, etc) and moving into the high-end manufacturing
step 3:
final stage is consumer driven economy as ur middle class is built up, ur wealth is built up, u have little to no debt as u didnt go into debt in the first stage of development, ur savings have built up so u can consume all the the products u manufacture, and u COMPLEMT the manufacturing sector by building up ur service sector as service sector is the wealth consuming such as retail, insurance, banking, education, leisure, etc.
thats the 3 stages of development.
china is now in the transition from the 2nd stage to the final stage.
indians are full of hatred to understand basic economics, they buy into the keynesian propaganda.
india is going into debt every year, their debts are upto their eyeballs.
they go into debt as their economic model is unsustainable. once they reach 90% debt to gdp, their economy slows as the debt burden is a drag on the economy. paying down debt means accepting lower growth and declining growth in the long term.\
china looks at the long term.
india like the west looks only at the short term and sacrifices the long term.
its because india is still controlled indirectly by the western world through indians living in the west. western governments are shrewd, they use the indian network in their countries to buy up politicians in india and use them as puppets for the western world.