In the 1980s, India and China were on similar economic footings. China’s current GDP is five times that of India, and the overwhelming difference highlights the widening gap between the two countries. Akshat Shrivastava, founder of Wisdom Hatch, warns in a post on
“All political parties in India are simply playing a freebie race. They are destroying merit, encouraging freeloading and doing nothing to prepare,” Shrivastava said in a scathing critique. In contrast, China has invested heavily in infrastructure, technology, and an export-driven economy, laying the foundations for continued benefits.
India’s GDP in 1980 was $186 billion, close to China’s $303 billion. But by 2024, China’s GDP had soared to $18.5 trillion, 61 times its 1980 level. Meanwhile, India’s GDP grew 21 times to $3.93 trillion. China’s high-tech exports are now 43 times larger than India’s, and China’s manufacturing accounts for 28% of global output, dwarfing India’s 4%. In terms of GDP per capita, China’s GDP is $25,015, far exceeding India’s $10,123.
Shrivastava blames political complacency and short-term populism for India’s slow progress. “What kind of meaningful future do you see for hardworking Indians?” he asked, calling for policies that prioritize perks over merit-based growth.
The focus on subsidies and freebies has stalled meaningful reforms needed to prepare India for global competition, he added.
Former central bank governor Raghuram Rajan recently echoed these concerns. He warned against attempts to copy China’s manufacturing model and warned of a backlash from global powers. Rajan suggests India leverages its strengths in services exports, but here too a lack of coherent policy is undermining potential gains.
China’s rise stems from a clear strategy of economic reform, heavy investment in infrastructure, and a focus on technology and innovation. Supported by advanced logistics and a skilled workforce of 200 million people, it has become the world’s largest exporter, worth $3.5 trillion annually. By contrast, India has only 60 million manufacturing jobs, hampered by poor infrastructure and low production efficiency.
