Growth Prospects in China and India Compared‪.‬

1. Introduction China and India, as the fastest-growing of the 'BRIC' economies, occupy a special place in the imagination of observers in the OECD and elsewhere. Despite their low incomes, their sheer size combined with rapid growth means that they make a substantial and rapidly growing contribution to world output. The success or failure of each country to maintain their rapid growth into the future will have a tremendous impact not only on their own economies but on the world economy as a whole. Moreover, with populations of 1.3 and 1.1 billion, respectively, their rapid growth has the potential to raise living standards significantly for a third of the world's population, bringing hundreds of millions of people out of poverty and creating a middle class that rivals the EU and US in both size and income.