- Entirely possible for India to become China 2.0, says Chinese think tank
- Report urges China to develop effective counter growth strategy
- PM Modi appears confident about attracting investment, says study
"China needs to ponder and study the rise of the Indian economy carefully. With a young population, it is entirely possible for the emerging market economy to become China 2.0 to gain the attention of world capital," it added.
The world's second largest economy should develop an effective counter growth strategy otherwise it may end up becoming a "bystander" to watch India's success, a study on Indian economy by Chinese private strategic think tank Anbound said.
"As China's demographic dividend diminishes, India, with half of its population below the age of 25, is poised to take advantage," it said.
Pointing to Chinese economic slowdown which last year grew to 6.7 per cent in contrast to India's estimated GDP of 7.1 per cent for 2016-17, excerpts of the report published in the state-run Global Times today said "just as what happened with China in the past, the changes that are taking place in India may also point to great potential for development".
The study said the Indian government appears confident about attracting investment as Prime Minister Narendra Modi hopes to boost the usage of clean energy over fossil fuels by building massive solar parks and is targeting $ 100 billion in investment in solar energy in the next five years, with the backing of loans from the World Bank.
"No other country could compete with India in supporting investors in the solar economy. It should be pointed out that China has not conducted enough studies on India. From the perspective of think tanks, China cannot wait until India grows into an apparently promising competitor before discussing how to deal with the situation," the report cautioned.
The report said that while Indian GDP "may lag far behind", it remains a potential emerging market that has high attractiveness for global capital.
Referring to various Chinese firms including Huawei, Xiaomi, Oppo and others investing in India, the report said "in our opinion, if India intentionally creates a competitive situation in front of global investors, it will pose a challenge for China".
"Generally speaking, India does have the conditions to copy China's economic growth model thanks to its vast size and market, low labour costs and large population, which are all similar to China's conditions. In fact, based on an Ernst and Young report, global investors are currently undecided," it said.