labels: industry - general, economy - general
Fortune slams India on not getting basics rightnews
24 October 2005

New Delhi: A report in Fortune magazine has slammed India for its bad government and inadequate infrastructure that prevents the country from matching China's economic growth.

The magazine said the ills of India stemmed from slow disinvestment of PSUs, high tax rates and lack of labour reforms that came in the way of India attaining the same pace of growth as China. The article is to be published in its October 31 issue.

The article said China's economic miracle was achieved by getting the basics right while India has blundered in what is obviously required.

The magazine said that though India and China had the same per capita income in early 1990s and started economic reforms at the same time, the "per capita income in China is more than twice what it is in India, and China takes in 12 times as much foreign investment."

The problem with India, Fortune said, is "bad government and an almost wilful disregard for the fundamentals of developmental economics.



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Fortune slams India on not getting basics right