Public sector inefficiency killing India’s entrepreneurial spirit: Chinese daily

India, despite all its successful software and banking industries, is pulled down by its "inefficient and impotent public sector", a state-run Chinese daily said today.

Writing in the Oped page, the Global Times said in an article that India's software and banking industries "contribute little to the employment and income growth of the overall economy".

While China and India are often compared as the two most prominent emerging countries in the fast-growing Asian region and despite their commonalities, the two are diverging in development paths and have fostered different comparative advantages for economic growth, the report said.

''We also need to bear in mind that there is actually a great gap in terms of GDP per capita between the two countries, with $5,414 for China and $1,389 for India according to the IMF statistics in 2011,'' the article cited.

Over the next two or three decades, however, these two countries will play even greater role in framing the global agenda and forging sustainable global economic architecture, the paper wrote.

''Although the Indian economy has been staying in a high growth track, its achievement was attained with higher costs compared to China. India's debt to GDP ratio is now over 70 per cent, accompanied by over 7 per cent inflation. China has performed better in many macroeconomic indicators, with even higher growth rates.