Labour and Industrialization: Can India and China Learn from each other?
Investment as a proportion of GDP in India (42%) was even higher than the corresponding level in China in 2007. However, the two countries responded to the global financial crisis in strikingly different ways. While India reduced its public expenditures, constrained as it had been by the fiscal burden imposed by the crisis, China massively increased its investments, especially in infrastructure and new technologies. India has many a lessons to learn from China’s success in absorbing its large labour reserves into the manufacturing sector. Notwithstanding the ongoing job crisis, India’s young population has the potential to stimulate both supply and demand factors, which can propel the country into the frontlines of economic and technological progress.
Thomas, Jayan Jose (2022), Working Paper, Prepared for Ashoka University’s China-India Visiting Scholars Fellowship Programme
Labour Economy Development 