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India¶s growth chapter has been widely spoken about, but how does it fare against the other
emerging economies? The comparison is made on a few factors that are an integral part of
sustainable growth.


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Income distribution has been chosen over per capita income as it gives a clear indicator as to
how the economic growth is spread and whether it is just the indicator of an exceptional
few.The involvement of all the people of the second most populous country is imperative to
its success. Comparison can be made based upon the Gini Coefficient.The Gini coefficient is
a measure of the inequality of a distribution on a scale of 0 to 1, where 1 denotes maximum
inequality.

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Brazil 0.55
Mexico 0.48
China 0.42
India 0.37

However India is far better in terms of income equality than the other emerging economies.
So it has done something right in this aspect and has come out on top.

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India has braved the recession and has come out with a commendable 7.4% GDP growth.
This may be attributed to the minimal dependence of the GDP to the exports with remarkable
performances from the agriculture, mining and manufacturing sector.However this may also
be attributed to the stimulus packages to increase demand. It is a double edged sword where
this demand is not being met by supply causing inflation.

China has had an explosive growth in the past two decades, due to its emphasis on improving
productivity. China has forced an advantage by devaluing its Yuan against the dollar which
has helped it maintain its exports.This may lead to a decreased international purchasing

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power; in addition it may have to purchase its own currency in the foreign reserves thus
reducing its assets.

Brazil¶s growth is truly astounding, with its domestic demand at an all-time high. The
important thing to note is the low unemployment rate which gives it an advantage. Unlike
China, Brazil is less dependent on exports which give it some sort of immunity against future
slowdowns. But its capital investments are low which indicates a low productive GDP
growth.



 

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India has improved in its soft- infrastructure (Cellular connectivity, internet etc.) but it is way
behind in its productivity improving infrastructure. Although having the second largest
population, India¶s usage of steel, cement and other raw materials is alarmingly low; this
indicates a sluggish infrastructure growth.





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China is spiralling into the pollution problem, Health problems may crop up leading to an
increase in productivity which is its USP. This is true for the other emerging economies that
are neglecting the environment in its rush for growth. So is this unhealthy growth really
sustainable?


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India still has a long way to go in terms of sustainable growth; it is definitely not in the
forefront, but rushing headlong into the rat race is not a path that India has to take.



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!c http://hdrstats.undp.org/en/indicators/161.html for Gini factor numbers.