Part 8/10:
India, despite implementing various supportive policies for its manufacturing sector, lagged behind due to inadequate infrastructure, resulting in bottlenecks that inhibited large-scale growth. Over time, China's strategic investments in infrastructure and machinery fortified its manufacturing capabilities, further enhancing economic development.
Factors Behind China’s Economic Success
Several contributing factors have underpinned China's rapid rise compared to India.
- High Savings Rate: China's gross domestic savings, often exceeding 40%, has provided substantial funds for investments in infrastructure and industry. This high savings rate is a crucial aspect of economic growth as it fuels domestic investment.