Could today’s India outshine yesterday’s China?
By Kristen McGachey, 17 Aug 17
Though it might be tempting to view today’s India as yesterday’s China, Rathbones’ head of asset allocation Ed Smith thinks the region’s growth prospects could be even greater based on five key indicators.
One of the leading indicators of future growth potential, demographics in India are strong, with a working age population that rivals China’s in 2000.
However, Smith argues that India’s demographics now are more favourable than China’s then and its working population is capable of surpassing China’s by as early as 2025.
“India’s graduate population is much larger than China’s was in 2000 – so there’s less scope for catch-up there,” he admitted, “but it has a much lower literacy rate suggesting potential gains from secondary education.”
