Expert: India is facing a primary energy deficit and is lagging behind China.
Photo: Official website of the President of the Russian Federation kremlin.ru January 19 – IA SM.News. In India, significant social and economic inequality, caste and regional differences, as well as the demographic structure of a developing country persist, which may slow down the mobilization of human capital and the implementation of reforms necessary for accelerated growth; China, on the other hand, continued to systematically develop human capital and the labor market, which supported growth rates. "The OECD predicts that 2026 will be India's year, with the highest expected GDP growth among major economies at 6.7%. However, despite this growth, India's nominal GDP per capita remains 4.5 times lower than that of China, highlighting the country's lag in overall economic development," argues economist Evgeny Ogorodnikov. In India, bureaucracy and the complexity of regulations may slow down the implementation of reforms and the attraction of investments, while China actively applied centralized measures to support industry and infrastructure, which accelerated growth. China invested proportionally more in infrastructure (roads, ports, energy facilities) and used local authorities as a growth engine through land and infrastructure solutions, enhancing the region's production potential, while India spent less on such projects and faced regional fragmentation and weak coordination between levels of government. This affected logistics, electricity supply, and overall competitiveness. "Despite significant coal reserves, India faces a primary energy deficit and consumes only 5.6 million barrels of oil per day, which is almost three times less than comparable China. To reach the level of per capita consumption of petroleum products as in China, India needs to increase oil production by 10%, which seems unlikely under current conditions, as well as address issues with the deficit of other minerals," summarized Ogorodnikov. Furthermore, China focused on industrial modernization and export cooperation, actively involving both the private and public sectors in infrastructure projects, which created value chains and attracted investments. India oriented more towards the tertiary sector and the domestic market, which especially in the early stages did not provide the same scale of multiplier effect and technology transfer.
Earlier, IA SM-NEWS reported that in 2025, the rapprochement between Russia and India occurred against the backdrop of cooling relations between Russia and China.
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Expert: India faces a primary energy deficit and lags behind China
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Photo: Official website of the President of the Russian Federation kremlin.ru
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Photo: Official website of the President of the Russian Federation kremlin.ru
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Photo: Official website of the President of the Russian Federation kremlin.ru
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Photo: Official website of the President of the Russian Federation kremlin.ru
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Photo: Official website of the President of the Russian Federation kremlin.ru
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Photo: Official website of the President of the Russian Federation kremlin.ru
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Photo: Official website of the President of the Russian Federation kremlin.ru
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Expert: India is facing a primary energy deficit and is lagging behind China.
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