BEIJING: China should take competition from India seriously as the Indian economy may see "explosive" growth in the future, raising prospects of it becoming "China 2.0", according to a Chinese think-tank.
The world's second largest economy should develop an effective counter growth strategy otherwise it may end up becoming a "bystander" to watch India's success.
"As China's demographic dividend diminishes, India, with half of its population below the age of 25, is poised to take advantage," a study on Indian economy by Chinese private strategic think tank Anbound said.
Pointing to Chinese economic slowdown which last year grew to 6.7 per cent in contrast to India's estimated GDP of 7.1 per cent for 2016-17, excerpts of the report published in the state-run Global Times today said "just as what happened with China in the past, the changes that are taking place in India may also point to great potential for development".
"With a large population of young people, which is not only the labour force but also a potential consumer group, India has the possibility of seeing explosive economic growth in the future. Therefore, we must pay close attention to the development of this unfamiliar neighbour," it said.
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