The quality and efficiency of India's economic growth are relatively good. For example, India's domestic savings level is only half that of China, and its annual foreign direct investment is only about 10% of China's. India lags behind China in infrastructure construction for about 10 to 15 years, but India has achieved rapid economic growth. More than 30% to 40% of GDP comes from productivity growth, not capital or labor.
(1) software industry. India's software industry has developed rapidly and ranks among the best in the world. India currently has a huge software talent pool and a large number of professionals. The proportion of output value and export is very large. According to McKinsey's report, by 2008, India's IT services and logistics will employ 4 million employees, making it an industry with an annual export volume of 57 billion US dollars, accounting for 7% of India's total GDP. In contrast, the development of China's software industry started late and there is a big gap.
(2) financial institutions. India's financial system is relatively sound, the proportion of non-performing loans is low, and the non-performing loan ratio of commercial banks is only 10.8%. India's stock market is relatively mature and has become an important place for Indian enterprises to raise funds.
(3) Enterprise system. India's private capital has accumulated rich operational experience. After India's independence, the private consortia that existed in the past have been further developed and a large number of new private consortia have emerged. After the implementation of economic reform in India, a large number of private enterprises or consortia engaged in information technology, pharmaceutical industry, food processing industry, garment and textile industry, cement construction industry and hotel tourism developed rapidly and quickly entered the global operation. India's modern enterprise system is relatively perfect and its enterprise management level is relatively high.
(4) Internationalization of talents and education. Indian talents have more international exchanges than China. Due to the popularity of English in India, the teaching language used by higher education institutions is English, and Indian college students can successfully obtain important information about the development of science and technology in the world. Indian university education pays more attention to innovative education, and students have strong innovative ability. Some universities and professional colleges in India have gained a high reputation in the world.
(5) Legal system. India's legal system is relatively sound. After India's independence, the legal system was gradually improved, and the public's legal awareness was gradually enhanced, which provided legal protection for the development of market economy. Market economy is an economy ruled by law. Without a sound legal system, the development of market economy cannot be realized.
Second, the reference significance of Indian model to China.
Although China and India face many similar problems and challenges, their respective coping styles have similarities and differences. It is their "similarities and differences" in many aspects that constitute the basis for their mutual comparison and reference. At present, India's economic development lags behind that of China, but we can still learn from its development model.
1. Vigorously develop the service industry and turn over-industrialization into moderate industrialization.
With cheap labor, land resources, excellent infrastructure and competitive preferential policies of local governments, China has attracted a lot of manufacturing capital from all over the world and become a world manufacturing factory. In this process, many polluting industries that were banned or set high thresholds by developed countries moved to China. Therefore, the ecological environment of China has been destroyed. At present, not only the manufacturing industry has a high proportion, but also the polluted air, water and land all indicate that China's economy has shown the characteristics of over-industrialization. Regardless of whether India's economic growth driven by service industry is the result of under-industrialization, only looking at the proportion of service industry in GDP, the rapid growth rate in recent years and the number of employed people, we can't help but affirm that India's service industry has indeed developed very successfully, especially its software industry and information technology-driven service outsourcing industry, which have achieved success all over the world. Analyzing and summarizing Indian successful experience in some service industries is of positive significance for softening China's industrial structure.
For example, the rapid development of India's software industry cannot be separated from the full support of the government. When the software industry was first introduced to India, the government entered the Indian market through state investment or forced joint venture between foreign-funded enterprises and local enterprises, and established a relatively complete computer industry system including software and hardware. When the industrial development needs scale and the international market develops rapidly, the Indian government encourages software enterprises to export with various preferential policies. In addition, the protection of software intellectual property rights has been strengthened through legislation, which has created conditions for more information technology outsourcing projects of multinational companies to flow into India. The rapid development of India's communication service industry is related to the government's opening up of the domestic market. Private capital has flowed into the telecom industry monopolized by state-owned capital. Competition urges enterprises to improve efficiency and reduce costs. At present, the prices of some major telecommunications services in India, including international telephone charges and Internet access fees, are lower than those in China. This Indian has created conditions for the popularization and popularization of information technology.
2. Adjust preferential policies for foreign investment, guide the flow of foreign investment, and create a level playing field for domestic and foreign investment competition.
Since the reform and opening up, China has actively attracted foreign direct investment, becoming the developing country that attracts the most foreign direct investment. In recent years, India has paid more and more attention to the role of foreign capital in promoting economic development. Although both governments provide tax incentives for FDI, India's tax incentives are more detailed and restrictive (including specific fields and specific time limits), and often emphasize the flow of investment rather than the source, so there is little difference between domestic and foreign investment in the same field. All along, foreign-funded enterprises in India bear the same corporate income tax rate as local enterprises in India, and sometimes even higher. In China, the effective tax rate of FDI is only about half that of domestic enterprises. Moreover, because the local government takes the introduction of foreign capital as a political goal and makes no choice about the industrial flow of foreign capital, foreign capital competes directly with national capital, so it can use the preferential policies of local governments to crush national capital. This obviously goes against the original intention of introducing foreign capital. Therefore, to some extent, we can learn from India's specific policies, guide foreign capital to flow to advanced technology, and give priority to the development of industries.
3. Create a good micro-environment for enterprise development.
The micro-environment of an enterprise includes many contents. For India, its relatively stable financial system and effective intellectual property protection system are worth learning from China. The bad debt rate of state-owned banks in India, which accounts for three quarters of the total assets of commercial banks, is only 5%, while the bad debt rate of private banks established after 1992 is even lower. With the government opening the domestic banking industry to private capital and foreign capital, competition has reduced the operating costs of Indian banks and gradually increased the return on assets. India's securities market has a long history, and it has long been in line with international standards in almost all fields such as stock issuance, trading system, market risk management, information disclosure mechanism and liquidation system. This is also an important factor for India to attract a large number of institutional investments. The first patent law in India was promulgated in 1970. Since then, India has initially established its own intellectual property protection system. In the next 30 years, with the continuous expansion of the concept of intellectual property rights, its protection of intellectual property rights is also constantly improving. With the rapid development of Indian software industry, more and more multinational companies choose to transfer their R&D centers to India, which has a lot to do with this.