India-China Cooperation: A Potential Game-Changer for Asia and the Global Economy
TL;DR
Jim O'Neill suggests that enhanced India-China economic cooperation could reshape Asia and the global economy, supporting BRICS. India requires 8% growth and reforms to become a middle-income economy by 2047, while tariffs are ineffective and the dollar's dominance may be challenged.
Tags
Former Goldman Sachs Chief Economist Jim O'Neill believes that greater economic cooperation between India and China could transform Asia and the global economy, giving substance to groupings like BRICS. To achieve its goal of becoming a middle-income economy by 2047, India needs sustained 8% growth and reforms in labor force participation, agricultural productivity, and education. O'Neill also argues that tariffs are an ineffective way to address trade imbalances and that the dollar's dominance may eventually be challenged by the rising economic weight of China and India.