India to become bigger than China eventually: Ex-RBI governor Rajan

He said India will eventually surpass China in economic size and will be in a better position to create the infrastructure being promised by the Chinese side in South Asian countries.

India is a rising star for several rating agencies and institutes. Their latest reports suggest India will reverse the sluggish global economic trend to become the fast growing country. Now, former Reserve Bank of India governor Raghuram Rajan is of the opinion that the Indian economy would continue to grow, even when growth rate is slowing down in China.
 
He was addressing a session on Strategic Outlook for South Asia at the WEF Annual Meeting 2019 in Davos on Tuesday.
 
He said India will eventually surpass China in economic size and will be in a better position to create the infrastructure being promised by the Chinese side in South Asian countries.
 
"Historically, India had a bigger role in the region but China has now grown much bigger than India and has presented itself as a counter balance to India in the region," Rajan was quoted as saying.
 
"India will become bigger than China eventually as China would slow down and India would continue to grow. So India will be in a better position to create the infrastructure in the region which China is promising today. But this competition is good for the region and it will benefit for sure."
 
Under One Belt One Road (OBOR) project, China is working aggressively on infrastructure projects across Asia region, that include India's neighbours.
 
The ambitious One Belt One Road (OBOR) project is the brainchild of Chinese President Xi Jinping.
 
Rajan was of the opinion that there is an opportunity to create regional companies.
 
According to a World Bank data, in 2017, India became the sixth largest economy with a GDP of $2.59 trillion while China was the second largest with a GDP of $12.23 trillion. 
 
Raghuram Rajan was the 23rd governor of the Reserve Bank of India (RBI). His tenure spanned for three years - September 2013 to September 2016.
 
Post his stint at RBI, Rajan has been teaching as Professor of Finance at the University of Chicago Booth School of Business.
 
Source: PTI, LiveMint, media reports

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