2 ms·
Base effect. 5% of 100 is 5. 5% of 500 is 25. India needs to grow at 25% of 100 to match China growing at 5% of 500. China will eventually only grow at 1-2%.
by dirtyid 5y ago
Base effect.
5% of 100 is 5.
5% of 500 is 25.
India needs to grow at 25% of 100 to match China growing at 5% of 500. China will eventually only grow at 1-2%. India may eventually catchup by sustaining 10%+ growth. But it's a long road and forces not in India's favor.
E: to clarify, I mean maintain same amount of growth as China, not maintain same proportion of growth. Same proportion increases actual gap.
- mlyle 5y agoSame absolute gap is kind of a weird metric, though, isn't it? If China is 500 and India is 100, and China grows to 50,000 and India grows to 49,600, you would call that "the same gap" but I would call it near-parity...
- dirtyid 5y agoIt's not a useful metric but illustrates how much India is actually lagging vis-a-vis PRC. The gap is widening not converging. The actual situation is even worse if you factor in things like forex trends.