India may soon catch up with China's pace of growth as the world economy shows signs of recovery after a year of downturn with the emerging markets at the forefront of the revival, says noted French economist Guy Sorman.
"The new Indian economic growth, an eight per cent trend, is based on private entrepreneurship, small businesses as much as large companies, on the domestic market as much as in the global market; and on a balance between industry, services and agriculture," Sorman says in his new book, Economics Does Not Lie: A Defence of Free Markets in a Time of Crisis.
The growth of Chinese markets seems to have hovered until recently at 10-11 per cent a year, says Sorman.
But "every country that is moving from an unproductive rural economy to rapid industrialisation attains that average", the economist contends.
Moreover, China has been lucky. "Since the global growth rate has been around five per cent since the beginning of the 21st century, Chinese industries have astutely tapped into the heightened worldwide demand," Sorman says.
Full report here Economic Times
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