align="left">One of the great topics of public discussion in recent decades among all economists, journalists, public policy enthusiasts and enlightened citizens is the rapid growth of China. India – China comparison is now the favourite pastime of economists. Both are emerging as major economic powers. China has been growing at 9 percent or more per annum, compared with India’s more modest 6 percent over the past two decades. This difference in growth means that Chinese economy doubles itself every 8 years, whereas it takes about 12 years for India!

Prime Minister Vajpayee’s China visit brought to the fore the inevitable comparisons between the economic performance of both nations. In some ways, this obsession with China over the years has become an important driver of change in India. In some quarters, the success of China is portrayed as evidence of the comparative advantage of authoritarian regimes over struggling democracies like India.

Some of you might have seen the recent media hype about the Goldman Sachs report, which projected India to become one of the 6 largest economies in the World along with Brazil, Russia and China by the year 2050. The report projects that among the current members of the G-6 only Japan and the US will remain in the top six by that time.