Publication

This paper suggests that while there are many similarities between the approaches followed by the two governments as indicated in their respective statements, there are also several subtle differences. These include the explicit attention paid to taking care of the poor and reducing income disparities in the case of the Chinese approach. In the Indian approach, there is much greater focus on returning to higher rates of growth. In presenting the budget, the Indian leader had his eye on the foreign investor while in presenting his government’s economic plan, the Chinese leader was more deliberately addressing his domestic audience. That said, both governments are setting the stages in their two countries for returning to the high growth trajectory. But adjustments need to be made for correcting some of the distortions that had crept in the previous growth spurts.