“China’s GDP is 5 times that of India…”: Startup founder warns of bleak future for hardworking Indians

In the 1980s, India and China were on similar economic ground. China’s GDP today is five times that of India’s, a stunning progress that highlights the growing gap between the two countries. This difference stems from the very different priorities of their leaders, warns Akshat Shrivastava, founder of Wisdom Hatch, in a post on X.

“All Indian political parties are simply running a free race: killing merit, encouraging exploiters, and doing no preparation,” Shrivastava said in a sharp criticism. In sharp contrast, China has invested heavily in infrastructure, technology, and an export-led economy, creating a foundation that continues to pay dividends.

In 1980, India’s GDP was $186 billion, which was close to China’s GDP of $303 billion. But by 2024, China’s GDP had risen to $18.5 trillion — 61 times its 1980 level — while India’s GDP had grown 21 times to $3.93 trillion. China’s high-tech exports are now about 43 times higher than India’s, and China’s manufacturing sector contributes about 28% of global output, dwarfing India’s 4%. Even in per capita terms, China’s GDP is $25,015, much higher than India’s GDP of $10,123.

Shrivastava blames political complacency and short-term populism for India’s slow progress. “What kind of meaningful future do you see for hardworking Indians?” he asked, criticizing policies that prioritize endowments over merit-based growth.

He adds that the focus on subsidies and freebies has hampered meaningful reforms needed to prepare India for global competition.

Recently, Raghuram Rajan, former Governor of the Reserve Bank of India, echoed these concerns. He warned against trying to replicate the Chinese manufacturing model, warning of a violent reaction from global powers. Rajan notes that India is leveraging its strength in services exports, but even here, a lack of coherent policies undermines potential gains.

China’s rise stems from a clear strategy: economic reforms, massive investment in infrastructure, and a focus on technology and innovation. It has become the world’s largest exporter, with a value of $3.5 trillion annually, supported by advanced logistics services and a skilled workforce of 200 million people. In contrast, the number of manufacturing industries in India does not exceed 60 million people, which is hampered by insufficient infrastructure and slow production efficiency.