Rise of China and Unrisen India

Comparing the economies of India and China highlights key differences in their economic structures and achievements. The idea is to bring clarity on the gap and the misplaced priorities of India.

Why Compare India with China?

China and India, being the world’s two most populous nations, share similar potential. Comparing India to smaller developed countries like Singapore, South Korea, or Japan could create a misleading perception that India is already doing well. The real challenge is comparing India with a country of similar scale and potential—China—to truly understand the gaps and opportunities for growth. Only then can India chart a meaningful path toward its future success.

The Comparison

1.????? GDP: China’s GDP stands at $17.96 trillion (2nd in the world), while India’s is $3.38 trillion (5th). This illustrates China’s dominance in overall economic size, driven by its expansive manufacturing and export capacity.

2.????? Exports: China leads the world with $3.51 trillion in exports, whereas India, at $0.77 trillion (10th), has considerable room for growth. China’s focus on manufacturing and innovation has made it a global export hub, while India is still building its manufacturing base to improve export capabilities.

3.????? Global Manufacturing Output: China contributes 31.6% (1st) to global manufacturing, compared to India’s 2.9% (5th). This reflects China’s strong industrial infrastructure, while India, with its more service-oriented economy, is gradually working to shift towards manufacturing through initiatives like “Make in India.”

4.????? Remittances: India leads globally in remittances, receiving $111 billion compared to China’s $26 billion. While this highlights the significant contribution of India's diaspora to the economy, it also emphasizes the ongoing brain drain, as many skilled professionals seek better opportunities abroad.

5.????? Human Development Index (HDI): China scores 0.788 (75th), ahead of India’s 0.644 (134th). The HDI measures life expectancy, education, and income per capita, showing that China provides a better overall quality of life, stronger education systems, and higher income distribution. India’s lower HDI suggests ongoing challenges in healthcare, education, and income inequality, despite economic growth.

Pattern: China focuses on "More Creation"—products, innovation, and high per capita income—while India suffers from "More Brain Drain," largely through service delivery. This pattern highlights China’s innovation-driven growth and India’s struggle to retain talent and promote high-value sectors like manufacturing and R&D.

Summary

While China leads in critical economic indicators, India has unique strengths, particularly in remittances. To close the gap, India must shift from being predominantly service-based to a creation-driven economy, fostering innovation, expanding manufacturing, and retaining talent. This transformation requires more than just growth in GDP or exports—it demands systemic change in education, skill development, and entrepreneurial ecosystems.

Initiatives like “Create in India”, “Made in India”, and “Make in India” can be steppingstones towards India’s aspiration of becoming a self-reliant and developed nation. For this vision to materialize, India must focus on:

1.????? Education reform: Transform education to develop critical competencies.

2.????? Entrepreneurial support: Enrich the ecosystem for innovation and entrepreneurship.

3.????? High-value manufacturing: Build capacity in high-value products and industries.

4.????? High-value service: Focus on high-value knowledge services in addition to the low-cost, labor-intensive body-shopping.

5.????? Agriculture: Focus on value-added agricultural products to improve rural prosperity.

Reshape India by Reshaping Its Youth

The transformation of India must begin with its youth. Every one of us has a role to play in reshaping the education system to cultivate the skills and mindset needed for innovation, entrepreneurship, and high-value creation. Without a fundamental overhaul of education and skill development, neither poverty will be eradicated nor will the standard of living significantly improve. To achieve true progress, we must shift from quick fixes to deep, systemic change—laying the foundation for a self-reliant and prosperous India. The future of the nation depends on empowering its next generation to think critically, create boldly, and contribute meaningfully.

India has proven its ability to win in the board game of strategy. Now, we must apply this strategic mindset to the realms of education, entrepreneurship, the economy, military, and digital transformation. By excelling in these critical areas, we can unlock the full potential of the nation and secure a prosperous future.

Let us all rise in the rise of India. Reshape India.