China and India are known as the Asian giants and currently they are known as the engines of world economic growth. However incredible may it sound the fact is that China overshot US to become the ace contributor in the economic growth of the world.
There has been a rise in demand for raw materials, food and energy by as many as 2.5 billion Indians and Chinese . Such growth has sent ripples all over the world. Even then it would be wrong to underestimate the US economy. The consumption of grain per person in US is three times higher when compared to China and five times higher when compared with India.
China and India have reached a status from which it would need only a decade to become global providers of sustainable energy and agricultural products.
China and India as propellers of world economic growth
1. Both China and India are world leaders in renewable energy sources. This has invited foreign as well as domestic investment.
2. The countries United States, India China and Europe consume about 75% of the biocapacity.
3. The outstanding growth of India and China has also helped in the reduction of poverty. Now the number of people who survive on $1 per day are below one billion. World Bank recorded a downfall in the extreme poverty level by 80 million and has attributed this fall to growth of the most populated countries of Asia, that of India and China.
4. A survey shows that by the next 15 years India and China would be greatest contributors in the economic growth of the country. It is estimated that by the year 2020 the economy of China, as measured using the Purchasing Power Parity, will be at the same pedestal as that of US. The share of Asia in the total global economy would also rise as a result of this to about 43%.
5. The expanding Global economy would require an increasing workforce of 471 million, 142.4 million of which would be supplied from India. China would be the second contributor followed by US.