India's latest quarterly GDP growth reached 7.6%, exceeding expectations, which is inIndian EconomyThis is rare good news. Surprisingly, however, it has always been trueIndian EconomyThe United States and Japan, which are full of praise, have begun to question and look down on it, and have expressed a different attitude from the past.
1. India's economic growth rate is contrary to expectations
According to data released by the Bureau of Statistics of India, GDP growth in July-September 2023 was as high as 76%, far more than the outside worldIndian Economyexpectations. Prior to the Reserve Bank of India's 65% is completely broken. This astonishing growth rate has aroused heated discussions and attention from all walks of life.
2. The abnormal attitude of the United States and Japan towards the Indian economy
However, the United States and Japan are against IndiaEconomyThe growth rate is skeptical and dissatisfied. Japan's Nikkei Asian Review published an article questioning India'sEconomyIt argues that India needs a sustainable way of growing and not benefiting only a privileged few. The New York Times also wrote that India's GDP growth is at odds with other indicators, such as:Unemployment rateHigh and low female employment rate.
3. The real motivation behind it
U.S.-Japan pairIndian EconomyThe decline is not due to concern for India's development, but out of consideration of national interests. As a moderately powerful country, India meets the strategic needs of the United States and Japan. However, when India'sEconomyWhen growth threatened the interests of the United States and Japan, they began to oppose India's development, and then to IndiaIndian EconomyQuestioning and pessimism.
Indian EconomyThe high growth rate is a good thing on the surface, but it actually exposes some structural problems. These problems make the United States and Japan against IndiaEconomyExpressed skepticism and belief that these problems will persist.
1. Economic growth comes from large enterprises, and small enterprises are overburdened
Indian EconomyThe growth rate is mainly due to the growth of large enterprises, while small enterprises have borne more burdens. This growth model is unsustainable and will lead to it in the long runEconomyInstability.
2. High unemployment and low female employment rates have become problems
Although India has the world's largest labor supply, it is facing high levelsUnemployment rateand the problem of low female employment. These issues reflect the inefficiency of India's labor market and the inequality of women's rights.
3. Low quality has become a key factor restricting economic development
IndianEconomyGrowth is constrained by low quality. While the labor supply is abundant, the majority of workers lack the necessary skills and education, resulting in low productivity and slow technological progress.
The reason why the United States and Japan are against IndiaEconomyIt's not just because of IndiaEconomyThe growth model is problematic because they see the potential for India's rise to threaten their interests.
1. The U.S. and Japan's co-optation and interest relationship with India
The United States and Japan have been trying to forge a close relationship with India. However, this partnership is not motivated by concern for India's development, but by self-interest. They want India to be a moderately powerful country to maintain regional balance and to act as a check on China.
2. Too strong India is not welcome
The United States and Japan have limited development for India, and they prefer to see a relatively small India rather than a strong and occasionally disobedient India. They do not want India's rise to threaten their position and interests.
3. The relationship between interests and doubts
The United States and Japan are rightIndian EconomyAlthough there is a certain degree of reasonableness in questioning, there are still their own interests behind it. This mix of welcoming and skeptical attitudes underscores the mixed feelings of the United States and Japan toward India.
India's latest quarterly GDP growth beat expectations, prompting skepticism and bearishness in the United States and Japan. However, these problems are actually not sudden, IndianEconomyStructural problems have been around for a long time. The U.S. and Japan's response is based on self-interest considerations, welcoming a modest India but not wanting to see one too strong. India as a risingEconomyA big country needs to face and solve itselfEconomystructural issues to achieve sustainable development and shared prosperity.