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| Bombay stock exchange ( Source- Wikimedia Commons /Author- Niyantha Shekhar) |
Source- Want China Times
India's nominal gross domestic product (GDP) might surpass China's in 2015, according to the International Monetary Fund (IMF), reports Nihon Keizai Shimbum, a Japanese news outlet based in Tokyo, cited by Beijing-based Reference News.
However, India has many issues to resolve in order to spread wealth across the whole country, the fund said.
The IMF predicted that India's real GDP growth will be 7.5% in 2015, said the report. India's nominal GDP in 2015 will reach US$1,800 per capita, which is the same as China's GDP per capita was in 2005. India will see a shift from consumption-led growth to investment-led growth, according to the IMF. This transition will give India the chance to surpass China's predicted 6.8% growth in real GDP in 2015, according to Reference News.
In terms of nominal GDP, however, China's growth figure will still stand at five times higher than that of India. India's lack of infrastructure, inefficient administrative system and unequal distribution of the wealth, will become major challenges for the country's economic development, the report said.
Bandra, a village in West Mumbai, has many high-end shops such as Swarovski and Rolex, while other areas of Mumbai are severely impoverished. Dharavi, for example, is one of the world's largest slums.
India has the highest poor population in the world, according to the BBC, with 1.21 billion people who earn less than US$1.25 a day.
China and India have traditionally seen each other as rivals for influence within the region, with markets of a comparable size. China has recently become more influential, with the founding of the Asian Infrastructure Investment Bank initiative, however, and its increasing military strength, according to Reference News.
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