In the 1980s, India and China stood on similar economic ground. China’s GDP today is five times that of India, a staggering lead that underscores the growing chasm between the two countries. Akshat Shrivastava, founder of Wisdom Hatch, in a post on X warns this divergence stems from the starkly different priorities of their leaders.
“All Indian political parties are simply running a freebie race: killing merit, encouraging freeloaders, and doing zero preparation,” Shrivastava said in a pointed critique. In sharp contrast, China invested heavily in infrastructure, technology, and an export-driven economy, creating a foundation that continues to pay dividends.
In 1980, India’s GDP was $186 billion, close to China’s $303 billion. But by 2024, China’s GDP surged to $18.5 trillion—61 times its 1980 level—while India’s GDP grew 21 times to $3.93 trillion. China’s high-tech exports are now 43 times higher than India’s, and its manufacturing sector contributes 28% of global output, dwarfing India’s 4%. Even in per capita terms, China’s GDP is $25,015, far ahead of India’s $10,123.
Shrivastava blames political complacency and short-term populism for India’s sluggish progress. “What kind of a meaningful future do you see for hardworking Indians?” he asked, calling out policies that prioritize giveaways over merit-based growth.
The focus on subsidies and freebies has stalled meaningful reforms needed to prepare India for global competition, he adds.
Raghuram Rajan, former RBI governor, had recently echoed these concerns. He cautioned against attempting to replicate China’s manufacturing model, warning of backlash from global powers. Rajan suggests India leverage its strength in services exports, but even here, the lack of cohesive policies undermines potential gains.
China’s rise stems from a clear strategy: economic reforms, heavy investment in infrastructure, and a focus on technology and innovation. It became the world’s largest exporter, valued at $3.5 trillion annually, supported by advanced logistics and a skilled workforce of 200 million people. India, in comparison, has just 60 million in manufacturing, hampered by inadequate infrastructure and slower production efficiency.