China's economy projected to significantly surpass India's growth

Rajesh Sawhney, a prominent entrepreneur, has sparked a debate about the economic growth of China and India. He predicts that by 2027, India will become a $5 trillion economy. However, he notes that India needs to increase its growth rate to over 12% a year to achieve this goal. India is expected to add $383 billion to its GDP in 2025, a record amount for the country. This growth rate, estimated at 6.5%, will still be lower than China's projected addition of $1.26 trillion. China's economy has a history of double-digit growth rates, while India has struggled to reach that level, with its highest growth rate being 9.6% in 1988. Since 1980, China has consistently surpassed India in economic growth. China has achieved double-digit growth on 15 occasions, especially during the 1980s and 1990s. In contrast, India reached a growth rate of 9.7% in 2021, but has not had a single year of double-digit GDP growth. The economic gap between the two countries is expected to widen. By 2029, China's GDP is projected to be four times larger than India's. To match China's anticipated growth of $1.26 trillion in 2025, India would need to grow by 32% from the previous year, which is a daunting challenge. Additionally, China's decreasing population may give it an edge in terms of per capita income, further increasing the economic disparity with India. The future of both economies will depend on various factors, including reforms and attracting foreign investment.