India's growth story is more balanced than China's: BCG experts
India's growth story may not have been as sparkling as China's but it's more balanced, thanks to its more judicious investment-consumption mix, Boston Consulting Group's global chief economist Philipp Carlsson-Szlezak said.
«When you look at it carefully, China's growth has been very unbalanced-very much focused on capital accumulation, neglecting consumption. And that is now catching up with China,» he told ET in an interview. «To me, from afar at least, it looks like India is on a more balanced path. I presume you can do a lot more capital investment-both public and private. But the fact that consumption is already a significant share of output, to me, it looks much more balanced,» he added.
However, additional tariffs on Chinese goods, as pledged by US president-elect Donald Trump, may not necessarily divert massive investments by global corporations away from China, he reckoned.
«The competition with China as a place of production is not just on the cost side. It's also the stability, the policy frameworks, the persistence of that which China used to offer and continues to offer in many ways. That would have to be replicated elsewhere also,» he said.
BCG India chairman Janmejaya Sinha said pain for China doesn't automatically guarantee commensurate gain for India or others, although a Trump regime may be good for New Delhi in some aspects, given the close bonds shared by the leaders of both the countries.
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