India and Indonesia are two of the world’s fastest-growing economies and are pioneering strategies for growth in an era of de-globalization, automation, and geopolitical challenges. Both countries have followed a traditional formula for economic growth, which involves moving workers from fields to manufacturing jobs and exporting goods. However, this formula is no longer as effective due to challenges such as protectionism and increased automation. Despite these challenges, India and Indonesia have seen significant economic growth and are leading examples for other countries looking for new ways to develop in the future.
India and Indonesia have similarities in terms of leadership and economic growth. Both countries are led by charismatic leaders who have a reputation for getting things done. They also have large populations and relatively young demographics. However, there are also differences between the two countries. India’s GDP has expanded by 71% over the past decade, while Indonesia’s has grown by 52%. Services dominate output in both countries, but they have different levels of informality in their economies. India has a larger informal sector, with 90% of workers employed in the grey economy, compared to 60% in Indonesia.
Both India and Indonesia are investing in ambitious infrastructure projects to support their economic growth. Indonesia has built ports, airports, and toll roads, while India is adding thousands of kilometers of highway each year. Despite these efforts, there is still a significant amount of catch-up needed in both countries. Indonesia’s gross national income per person is $4,180, while India’s is about half that amount, making them both lower middle-income economies.
In conclusion, India and Indonesia are leading examples of countries finding new ways to grow their economies in the face of global challenges. They have achieved significant economic growth and are investing in infrastructure to support further development. However, there are still challenges to overcome, such as protectionism and increased automation. The success of these countries will not only benefit their people and investors but also serve as a model for other countries seeking reliable ways to develop in the future.
