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Gujarat Chief Minister Narendra Modi visits China

Funny how your Indian friend was so insulted by the comparison, even despite the numbers above.

To an extent, it is due to the influence of unregulated free media that has built an alternate image of China in the minds of a large number of Indians. As more and more people visit China and vice versa, the psuedo image of one another should vapourise.
 
I share my thinking with Singaporean Former prime minister Lee Kwan Yew that Vietnam can be successful using East Asian model, or Chinese model, but India should not follow this so-called Chinese model. The Indian and the Chinese are totally different people. To be as success as the Chinese (or Taiwanese, singaporean etc.), other people has to share some belief, tradition, culture, and many things, even language with them. Indian are surely not.

India should build its own model of development, or follow Western model, which are far more close to them in many aspects.

I agree.

Vietnam seems to be the country that is most likely to become the next manufacturing powerhouse in Asia.

I don't know if it has anything to do with culture, but all East Asian countries tend to follow the industrial path of development.
 
Yours is an easy but not practical economic theory. i.e easy to be talked about, easy to explained, easy to be accepted, but very hard to be realized.

Fair enough. I will try to explain better.

How can you explain the so-called East Asian economic model (authoritative or single party government, export-led growth, etc.) have been successful only in East Asian countries and although it has been around for hundred year since Japan, no other countries, even South East Asian can adopt it. In other countries, authoritative government and single-party, like that of Mr. Lee Kwan Yew, will easily lead to dictatorship and destruction of economy. Export-led in other countries may easily lead to totally dependent on foreign capital, technology and market, but not in the case of East Asian countries.

The main economic model for growth and development in China is of manufacturing. Labour intensive export oriented economy. In contrast, India is dominated by a service oriented economy.

Does China want to move up the value chain and become a bigger and better destination for service oriented economy ? Yes
Does India want to create millions of jobs in a labour intensive domain inorder to lift millions out of poverty ? Yes.

Does China need to learn a thing or two about Service oriented model ? Yes
Does India want to learn from the success of the manufacturing boom and export oriented model from China ? Yes
India over and above should focus on exports due to a bulging current account deficit.

The east asian single party authoritative political framework is an enabler and not the end in itself. A different political setup can also provide if not all but to some extent a conducive environment for the economy to progress in a direction that best suits them.

Is it difficult to create regions for excellence in manufacturing and sub ecosystems focused on export ? No. For example : Delhi Mumbai Industrial Corridor :: An Indo-Japan Mega Infrastructure Project

This is an attempt and quite a good one. Only time will tell if justice was done to such a brillinat plan.

The current share of manufacturing is 15% to Indian GDP. India plans to move this to 25% in a decade. It is an ambitious plan and nothing close to what China's GDP pie shares. But the bottom line is a lot of things that China does best can be replicated. The labour cost in India is lower but the skill and traiing is something we lack. We can replicate what China did a couple of decades ago to ramp up the skilled labour. It is not about the political model but the will of leaders and Modi is one of them with the right orientation.
 

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