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India will catch up with China on reforms soon: Li Peng

Syed Amin Jafri in Hyderabad

India has the potential to catch up quickly with the People's Republic of China in economic reforms, said Li Peng, chairman, National People's Congress of China.

Li Peng, who wrapped up his nine-day Indian visit with a two-hour foray into Hyderabad on Wednesday, told an impressive gathering at the Hitec City near Hyderabad that "China started long ago on economic reforms. India began much later, but it will be able to catch up."

In his brief remarks in Chinese, which were translated by an interpreter, Li Peng also exuded confidence that "if our two countries (India and China) come together and work in tandem, we will make a great contribution to the world."

The visiting high-ranking dignitary also made it clear that political stability was the key to the success of economic reforms and development. "We have opened up our economy to the outside world. Reforms, development and stability are inter-related and need to be handled properly. Reforms will lead to development; and for development, stability is necessary. Without stability, it is not possible to have reforms or development," he observed.

He said that his country's reforms programme was aimed at creating a socialist market economy wherein revenues are allocated according to market demand with emphasis on macroeconomics management.

He pointed out that China's twin objectives were to produce enough food and double the GDP growth rate. "These two goals have been achieved. Now, we are taking the third step to achieve seven percent annual economic growth rate in the first 10 years of this century," he added.

Li Peng said that China has initiated programmes to strengthen science and technology and education. China was also making rapid strides in the information technology sector. Lot of importance was given to education in China where nine years' compulsory education was imparted to every child.

The enrolment rate reached 80 per cent.

He admitted that despite reforms and economic growth, some regional and other imbalances remained in this country. Still, four percent of the people in China lived below the poverty line.

Mostly they were people living in mountainous regions or other places where the natural conditions were harsh.

The Chinese leader, who was shown around the Hitec City (where major IT software operations are located), remarked that Andhra Pradesh, like some other states in India, achieved great progress, particularly in the IT sector.

"I am happy to note that your state has formulated comprehensive programme of socio-economic reforms," he told the host and Andhra Pradesh Chief Minister N Chandrababu Naidu.

Earlier, Chandrababu Naidu made a powerpoint presentation on the business and investment opportunities in Andhra Pradesh to the visiting dignitary and his 28-member entourage, including Zhu Lin.

Later, the Chinese leader and his team left for Beijing, rounding off their nine-day visit to India.

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