In a talk organized by the Emerging Markets club and the Entrepreneurship and Venture Capital (EVC) club at the Indian School of Business (ISB), Ramakrishna Velamuri, Visiting Associate Professor of Entrepreneurship at the ISB, spoke about ‘Demystifying the Dragon- What the world can learn from China’.
Some of the differences between the two largest emerging markets – higher rate of migration of labor from agriculture to Industry in China, lower percentage of labor force in the service sector in India and lower capital efficiency in China. “China had to invest a lot more to maintain its nine to ten percent growth,” . Adding to it, even though India had the advantage of having a younger population, China scored in the areas of technology diffusion, gender equality and health-care. “Literacy, health care and gender equality were the drivers of economic growth, not the consequence of economic growth,”.
Velamuri said the democratic system of government, a free press, dependence on private initiatives compared to government measures and lower dependence on foreign trade were some beneficial factors for India. The historical neglect of primary education, delivery of healthcare to the masses, gender equality, physical infrastructure, speed of political decision making and manufacturing costs were some unfavorable areas for India vis-à-vis China.
The Emerging Markets Club is focused on the rapidly changing face of the global economy and the increasing importance of the emerging economies in global affairs. And the EVC club focuses on encouraging and fostering entrepreneurship among the student body, provides practical learning opportunities to minimize risk and maximize success in ventures, and facilitates interaction with experienced entrepreneurs, industry experts and venture capitalists to gain insight and inspiration.