Archive · 14 Sep 2025
Ruchir Sharma: India Won't Match China's Growth
Economist Ruchir Sharma believes India won't grow as fast as China did.
He says India can't make the same changes China did, like getting rid of money-losing companies and not giving out free stuff.
China's economy was booming, but India gives a lot of assistance.
Sharma also notes India's lower income compared to China.
He said if India grows faster than China, it will still take a long time to catch up.
He points out that countries need good leaders during tough times, growing populations, and cheap currencies to succeed.
He thinks India's focus on giving free things to people and less focus on capitalism hinders growth.
Ruchir Sharma said India won't experience the same rapid growth as China.
Sharma points to differences in economic reform and policies as reasons for the difference.
India's current per capita income is significantly lower than China's.
Sharma emphasized the negative impact of freebies on achieving high growth rates.
India's projected growth rate in FY26 is between 6.5% and 7%, while China's is about 4.5%.
- Who
- Ruchir Sharma, an economist and fund manager
- What
- Discussed why India is unlikely to achieve double-digit growth like China.
- When
- During a podcast.
- Where
- India
- Why
- Sharma cited structural differences and the 'freebies culture' as key impediments.
- Economist
- Ruchir Sharma
- India's projected growth (FY26)
- 6.5% - 7%
- China's projected growth (FY26)
- Around 4.5%
- India's per capita income
- $3,000
- China's per capita income
- $10,000+