ABSTRACT
Over the last two to three decades China and India have attained spectacular prominence due to their rapid economic progress. Their unprecedented economic success is attributed largely to the integration of the two economies into the global fold. This spectacular acceleration of economic growth in China (since 1978) and India (since 1991) is the culmination of the unfolding of the new international division of labour. While the two countries’ ascension stem from a similar impetus, their growth patterns diverge significantly. This chapter looks at the growth stories of the two countries and what they can tell us about the drivers and directions. It also addresses questions such as how China achieved and maintained such a high growth momentum for around three decades, why India has lagged behind in achieving comparable high growth momentum and with the global economic meltdown in 2008, what key challenges do these countries face and what coping measures are required to lead them back into their previous high growth trajectory orbits.
