Moscow: SiltaNews – News Desk
Brazilian economist Paulo Gala compared India’s development trajectory with that of China, identifying common features between the two countries. He suggested that the key component of the success of the Indian economy lies in a sound industrial policy. His remarks were reported by Brasil 247, a partner of TV BRICS.
According to Gala, “the idea of India’s economic development is closely intertwined with industrial development”, which is reflected in its territorial and sectoral strategy. He described the logic of industrial corridors as dividing the map and structuring priority zones with the provision of incentives and infrastructure to accelerate industrialisation and technological development.
Gala emphasised that one of India’s significant achievements is that it has managed to triple its per capita income over two decades, maintaining annual growth rates of 6–7% and a trajectory comparable, albeit on a smaller scale, to China’s rise. Comparing India and China, the economist noted the broader scale of China’s success but stressed that India is also developing at a steady pace and already has “an industrial output of almost US$500 billion.” In the economist’s view, the main components of India’s economic success have been industrial development, accelerated industrialisation, and the application of new technologies.
Gala argues that Brazil already has a development plan – “New Industry Brazil” – but the country requires greater boldness, favourable credit conditions, demand for innovation, and an emphasis on strengthening domestic capabilities. In particular, he notes that industry needs preferential conditions similar to those enjoyed by agribusiness. At the same time, he stresses that this does not simply mean “reducing payroll taxes” but supporting advanced sectors capable of generating technologies, patents, and skilled jobs.