Why India Struggles to Compete with China's Economic Growth

India can never be as rich as China. The reason is democracy.

China does not have democracy. China is a dictatorship. But China's dictatorship looks something like this.

Here, there are trains going at the speed of a plane. Here, in just 19 days,

a 50-story building is built. Moreover, an AI product of this dictatorship can shake the US stock market.

But India's democracy looks something like this. The purpose of this video is not to make you feel negative about India.

We want to show you a mirror of how democracy can sometimes become a barrier to progress.

And at the end of this video, we will discuss some solutions with which we can progress.

And that too, without becoming a dictatorship. If you liked our solution-oriented mindset,

then don't forget to subscribe to the channel. It will only take you 2 seconds. But this gives us the courage to make

such solution-oriented videos. Chapter 1. How did China progress?

To understand why China is rich, watch this clip. This is the opening ceremony of

the 2008 Beijing Olympics, where 2,008 drummers are performing in a perfectly coordinated manner.

This was China's movement to tell the world, This is China. We have arrived.

Look at this graph. The red line is China's GDP and the blue line is India's GDP.

And by the 1980s, both the countries were almost equal. But look at what happens after the 1980s.

What happened after the 1980s that China went so far ahead of India? China's total GDP is 17 trillion dollars,

which means 17 lakh crore dollars. And ours is 3.5 trillion dollars,

which is 3.5 lakh crore dollars. An average person in China earns 12,600 dollars,

that is, 11 lakh rupees every year. And India's is only 2,400 dollars, that is, 2 lakh 9 thousand.

Where did this difference start? The answer is this man, Deng Xiaoping.

In 1978, under the leadership of Deng Xiaoping, reform and opening up policy came to China, which had only one goal,

export-oriented manufacturing. And to reach this goal, they removed hurdles one by one.

Like the hurdle of judiciary, the hurdle of local government, or the hurdle of civic society.

And all this happened when even to buy a telephone in India, you had to wait for three years.

India had a license rule. Where India's democracy increased obstacles, China's dictatorship removed obstacles.

I had learned in college that there are four factors of production. Land, labor, capital, and entrepreneurship.

Land means place and natural resources. Labor means human effort. Capital means money that can

buy machinery and tools. And entrepreneurship means the business owner who

combines these three things. Among them, China solved the problem of land and capital with SEZ.

China created special economic zones and strategically developed underdeveloped areas. Like Shenzhen,

which was a fishing village. But foreign investment was brought here. Tax incentives were given.

Regulations were reduced. Today, electronics are made for companies like Apple and Huawei in Shenzhen.

The mixer, washing machine, or some parts of your computer must have been made in Shenzhen.

Special economic zones are also there in India. But why don't they perform as well as China?

I guess they don't really focus on exports or manufacturing. This is why China joined

the World Trade Organization in 2001. And by 2009, China left Germany behind and

became the world's largest exporter. This is not a coincidence, friends. This is the result of a carefully planned strategy.

A strategy that does not change in every 5 years when the government changes.

China's dictatorship policy is consistent. It focuses on long-term goals. If there was no dictatorship in China,

China would not have been able to bring the Hukou system. What is this system?

Basically, every citizen of China is divided into two categories. One is rural and the other is urban.

This is China's internal visa system. That is, a laborer can come to the urban area from the rural area to work.

But he cannot bring his family. Because of being a rural Hukou, he will not get admission in government schools.

There will be no treatment in government hospitals. If someone comes to the city to work because of this system,

he cannot afford to live in the city after becoming old. So he goes back.

There are no slums in cities. If you have a rural Hukou and you come to the city,

and you have children in your city, they will still have a rural Hukou. This solved China's labor problem.

And at the same time, it also ensured that people do not migrate to cities with their families.

What do you think? Is this system fair? Should India bring such a system?

So that our cities are not overcrowded? Do let us know in the comments. Chapter 2, China and India.

What is the difference between China and India? You can understand from these examples. China built a

high-speed railway infrastructure of 40,000 km, which led to industrial growth. India also wants to improve rail,

but the Mumbai-Ahmedabad bullet train project was approved in 2015. But due to lack of land acquisition,

it is still incomplete. Legal battles are going on for the compensation of displaced farmers.

You won't believe it, but India's 78% road development projects, 75% rail projects,

22% power projects, have stopped due to such land disputes. India's growth is due to the

private sector of India. But when is the private sector allowed to work?

Let's take the example of West Bengal. Ratan Tata wanted to produce nano in West Bengal.

It was his dream to build a car worth Rs 1 lakh, which the West Bengal

government completely destroyed. This was in 2011, when private players were seen as

public enemies in India. And in China, they were seen as wealth creators.

In 2010, an iPhone factory was to be built in Zhengzhou.

Approvals were obtained in three weeks. Today, we are trying to make iPhones in India as well.

But what happens? 2000 workers broke windows and set fire. Such cases keep happening.

In fact, they are happening. Samsung is setting up a factory to manufacture phones in Tamil Nadu.

But what has been happening for the past few months? The communists are protesting

to create a workers' union. When have communist protests ever achieved anything good in India?

Even in Mumbai, there were many mills that employed a lot of workers. But because of such protests,

all the mills shut down. And God knows how many people lost their jobs.

Who suffered the loss? The business owners may have moved on and opened new factories.

But what about the workers? Only the workers suffered the loss. What do you think?

Does such news encourage people to become entrepreneurs? Or does it force people to think

that nothing can be done about this country? Let's run away to Germany. All these things force Indian talent

to leave the country and settle abroad. The biggest ambition of the youth of the country is to leave the country

and settle in another country. Whereas China's plan is different. China has brought the Young Thousand Talent Plan,

through which China tries to attract foreign scientists, academics and entrepreneurs back to China. This can solve the fourth pillar of production,

the problem of entrepreneurship. There are various grants in China that encourage entrepreneurs.

But India's focus is only on those who don't work. Encouraging those who work

is not done at all. In fact, there are no straight rules in India. If you want to start a business,

there is no set guideline for the rules. So when an inspector comes to your door tomorrow and says that you don't have this license,

or you have broken this rule, what can you do? You can raise your hand and surrender

and there is no option. Because the rules you have to follow, the licenses you need,

where do you get them all in one place? You have to knock on a hundred doors. Then you have no choice.

Either you get prosecuted under that law, that is, you get stuck in the justice system, or you bribe that inspector

to make my problem disappear. Most of the people will just choose to let the problem go away.

Does this help anyone? Not really, just the inspectors. This is the problem with India's democracy.

The problem with democracy is that democracy is the enemy of upskilling. Because as long as someone is poor,

as long as someone is uneducated, he is happy with the free ration and cheap cylinders given to him like alms.

But what if he himself stands on his own two feet? Then he will ask questions.

Why is our justice system slow? Why are the roads so bad? Why is the air not clean?

And no government wants the public to ask questions. This is why democracy is not perfect.

Chapter 3. I hate democracy? China is rich because

there are no elections in China. China has a one-party dictatorship. Since 1949, the Communist Party

has been in power in China. And to elect the leader of this party, they have internal elections.

But the devil lies in the details. Not a single person voted against Xi Jinping in this election.

After this video, many people will think that I hate democracy. And the story is not that simple.

Let me tell you a simple story. Imagine that you are in a plane and you are flying at

an altitude of 35,000 feet. Suddenly there is an announcement that the airline has made a new policy

that passengers will decide who will fly the plane. You have two options.

Option A, a well-trained, experienced pilot who has flown the plane for many years.

Who can handle turbulence and can make tough decisions in emergencies.

Or option B, a friendly person who talks a lot. Who tells you that you

can drink unlimited drinks. Gives you permission to smoke on the plane. Says nothing will happen,

even if something happens, I will handle it. And moreover, he says that you will get

10 international flights a year for free. Who will you choose? And more importantly,

who will most people on the plane choose? Pause for a second and think.

It is possible that you are a rational thinker. And you will think that boss, 10 free flights a year

will be collected when we land. But there is a guarantee that people sitting besides

will leave work and see everything else. They will see what is the pilot's religion? What language does he speak?

How does he dress? How many big promises does he make? How fair is he?

How dark is he? What is his family like? What is his last name?

The biggest flaw of democracy is that the public does not always see who is a good pilot.

Who has a good track record. Elections are a popularity contest. So the things that are more popular

are promoted more. And I hate this part of democracy. Someone gives electricity for free,

someone gives laptops for free. Someone gives a gas cylinder for free, someone gives foreign education

for free to a caste. And we are so stuck in this competitive socialism that we don't get votes on development.

Every party has understood this. So where is the incentive to develop? Where is the incentive to make a good city?

Where is the focus? The focus is here and it is going to be here.

Leaving all this, subsidies and freebies eat up 26% of our central budget. That is, 1 fourth gone

It doesn't matter if you get any benefit or not. Whether these things matter to you or not.

But these things matter to your neighbor. And your neighbors also vote. And the winner of Big Boss

can be chosen by votes. If you want to test talent, votes can't always be right.

This is the truth. Today we see that 46% of MPs in the parliament are serious criminal cases.

We are making convicted criminals our leaders. And then we are thinking why the country is not moving forward.

This is not a problem in China. That's why China can take controversial decisions that assure the growth of the country.

For example, in 2018, China removed the presidential limits so that Xi Jinping remains the leader of China forever.

China shut down the private for profit educational tuitions overnight. In 2008, 1.5 million people

were thrown out of their homes for the Beijing Olympics. But China's official number is only 6000.

That means the rest of the people didn't get any compensation. Imagine, China had Dharavi

we wouldn't need to wait for redevelopment. No one would have got a home. Yes, if you protest or talk to the media,

you would get a room in jail for a lifetime. What I really admire about China is that they are ruthless about everything.

If anything is in their country's interest, they will act on it. If they want to become a military power,

they will show naval supremacy. They will go and fight with 100 countries. Whether that is right or wrong

is a different discussion. But they come out and they showcase their strength.

They don't sit and say that we are going to sit back and do nothing.

China reverse-engineers everything from behind. They know that they have to work on AI, which means they have to do it.

For that, they'll attract the best talent and they'll do something that absolutely shocks the world.

The best part about China is just the fact that they keep a very far-sighted eye.

We always play catch-up in our policies. Oh, the population of a city has increased more than the limit.

Now how to fit that population there, how to do that, we will focus on this.

But China will see that I have to make 1000 cities where people can fit. So it will work on that.

China also has beautiful videos about its tier 5 cities. Showing a skyline,

showing parks, showing footpaths, showing that they are accessible,

beautiful cities. But if you see any tier 5 city videos of India,

it looks like the same hellhole. In fact, if you see any big city videos,

they look like hellholes too. In fact, every place in Mumbai is dug up as if BMC is looking for oil below.

There is a mess of air quality and if the videos of the roads here are leaked, then my god,

no one will want to come to Mumbai. How will Mumbai become a world-class city? How are we even going to compete?

There is no option in China. In fact, Chinese property law says that there is no concept of private land here.

All the land belongs to the government. To bring China's population under control, there was a one-child policy from 1979 to 2015.

But when it came to birthcontrol in India, the government fell. Concentration camps are built for Uyghur Muslims in

China and no one protests. There is no talk of this in Pakistan. But if there is talk of bringing CAA in India,

then people come down to the streets. Even though it has nothing to do with the citizens of India.

China's progress is based on the foundation of many such controversial decisions. Which if it starts happening in India,

then some people look for a way to call India a dictatorship. Chapter 4.

What can we do? You see, India's problem is that India has the worst of both worlds.

That is, there are flaws of democracy and there are flaws of dictatorship. At least to some extent.

What are the flaws of democracy? Development is slow. Roads are dug for months

and there is no accountability. There is corruption and no action is taken on corrupt bureaucrats.

And leaders think less about the country and more about elections. What are the flaws of dictatorship?

You do not have freedom of expression. If you post a Facebook post about a politician,

the next day the goons will come home. If you give a laughing reaction to a bureaucrat's post,

a case will be filed. And the rules are different for everyone. A politician can sit in an assembly

and see dirty things. But because of a joke, national culture is ruined.

Both are wrong. Both should not happen. And both should be punished as citizens.

But does this happen? There is a single party rule in China. But will this solution be right for India?

You see, if a single party rule could improve the country, then from 1947 to 1977,

there was a continuous government of the same party in India. Rapid development like China

did not happen in India. Because we have always seen wealth creators as crony capitalists.

Yes, big businessmen scam, but not everyone. Here I want to say something important.

I am not saying that there is no corruption in China. In fact, if you read this book,

you will see how there is corruption at every level in China. But what is against that corruption in China?

Results. For example, if China has decided that I want so many gold medals

in the next Olympics, then they reverse engineer and work hard on it.

So the people are promised that if you can get so many gold medals, then you will get so many things.

So much money, house, so many things will be given. So they are actually motivated

towards bringing results because then it gives them whatever incentives or

money or whatever there is. But there is corruption in India and there are no results.

I mean, what sort of injustice is this? If you are taking money, then at least ensure that

the roads are right. The city should look beautiful. If you have to do corruption

in the name of infrastructure, then at least ensure that the end result is right.

The end result should be something good. Here, a line from the founding prime minister of Singapore is remembered.

That the government's role was not to run the economy, but to ensure that it ran.

We need an attitude change. India is not the next China. And that should not even be our goal.

So what can we do? At the beginning of the video, I told you a lie

that India cannot be as rich as China. That is not exactly true. Why do you know?

Because China's strengths are going to become their weaknesses. Because of dictatorship,

there are conflicts in all four directions of China. No neighbor likes China.

China exists because there is no alternative. As soon as alternatives come for China, businesses will shift out of China.

And we saw this in Covid that so many businesses from China shifted to Vietnam and Thailand.

The question should be that why do these businesses go from China to another country? And why doesn't India come?

Reason number one is our cities. India is dependent on four cities since 1947. Mumbai, Delhi, Kolkata and Chennai.

Bengaluru, Hyderabad, Gurugram, Pune have been some such alternatives. But our migration is only in one direction.

Villages to cities. We need to focus less on cities and focus on employment generation in villages.

Gift city is an excellent concept which should be in every state. People need to have employment

options in their own state. And until this does not happen, we need a national remote work policy

so that people don't have to leave their native place. Reason number two is manufacturing.

India shifted from agriculture to the services sector. Due to the services sector, there won't be much employment in the future.

Because AI is coming and AI will eat many entry-level jobs.

So we need to focus on manufacturing. India's GDP is only 14% from manufacturing and this number is 28% in China.

Double than us. Today, 60% of India's population works in agriculture.

But this sector's GDP is only 16%. Imagine, 60% population is only responsible for 16% productivity.

This is the country's problem. We need to shift more people from agriculture to manufacturing.

China has focused significantly on vocational training so that they have skilled labour. Today, there are notices everywhere around our studio

that we need a tailor, skilled worker, but we don't get them. We have to solve this mismatch

and that starts with a mindset shift. So when I was in college, people used to look at vocational training

as if you don't get good marks, go and do vocational training. And that's why it was always

looked down upon that a person is doing vocational training. Vocational training was given

a second-class status. And you know what? In future, there will be many engineers in India

but plumbers, electricians, painters, carpenters who are actually skilled labourers

who do excellent work Their scarcity will be felt because people just think that

there is a lot of pride in becoming an engineer but there is no pride in doing this profession.

And that's where the problem lies. Reason number 3 is English. People in China don't speak English.

We are the world's largest English-speaking country. This is our strength. This should be our advantage but

it has been limited to operating a call center. We need out-of-the-box thinking. Today, the whole world needs English teachers.

By teaching English to the world, our talent can become a bridge to the world. We have to recognize this fact.

Plus, there is so much heritage that we don't utilize. We don't attract tourists.

We don't show them our culture. This is an untapped potential. A few days ago,

I went to an exhibition of Maharashtra Times where they exhibited Marathas' weapons, our poems, and our art.

This is our golden heritage. Every state has forts, history, and food. And if we want to spread these things to the world,

Indians have a unique advantage that we know English and we know our native language.

Our generation will have to work as a bridge to the world. Because this advantage won't last for long.

We are already losing our monuments and our culture. Our forts are in disrepair

If we don't value our culture, why would any foreigner value it? Why would anyone want to preserve it?

India needs rebranding. If you want to know more watch this video where we talk about how the

tourism sector can strengthen India's economy. Because by learning from every country in the world, making India 1% better makes a

difference.