India and China are said to have gone down separate roads to economic growth. India has depended on its companies and entrepreneurs. China has banked heavily on its government.
Here’s more proof. The World Economic Forum (WEF) has brought out its new annual ranking of global competitiveness. China (at No. 34) leads India (at No. 48) in the overall list of 131 countries.
These rankings are based on 12 pillars, from quality of institutions to innovation to economic stability.
But the tables are turned in what could be called the microeconomic rankings. Here, India leads China. It comes in at No. 31 in the business competitiveness index. China comes in at No. 57. The gap, in fact, widens when only one parameter—sophistication of company operations and strategy—is considered. Indian companies are at No. 27 while China’s are at No. 54.
In India, enterprise rules.