RBI Governor Raghuram Rajan made it clear India can't overtake China as a growth engine any time soon even if the economy grows at a much faster rate.
When asked if India can replace China as a new growth engine, Mr. Rajan opined India is just one-fourth or one-fifth of China's size right now and even if India overtakes China's growth rate its magnitude will remain smaller for a longer period.
As per World Bank data, GDP of US is over $17 trillion. While GDP of China is over $10 million, India's GDP is just $2 million. So, That will give a clear picture of the vast difference between the three nations.
The RBI Governor says China has become very crucial for the global economy and any adverse development will impact the rest of the World, hinting at recent crashes of stock markets in various Nations.
According to Raghuram Rajan, "India is quite different from other Nations and Inflation is as high as 6. Indian Economy is at 7.5% growth which is the best in the World at present. India is picking up at a good pace and there are a lot of opportunities".
When asked if India can replace China as a new growth engine, Mr. Rajan opined India is just one-fourth or one-fifth of China's size right now and even if India overtakes China's growth rate its magnitude will remain smaller for a longer period.
As per World Bank data, GDP of US is over $17 trillion. While GDP of China is over $10 million, India's GDP is just $2 million. So, That will give a clear picture of the vast difference between the three nations.
The RBI Governor says China has become very crucial for the global economy and any adverse development will impact the rest of the World, hinting at recent crashes of stock markets in various Nations.
According to Raghuram Rajan, "India is quite different from other Nations and Inflation is as high as 6. Indian Economy is at 7.5% growth which is the best in the World at present. India is picking up at a good pace and there are a lot of opportunities".