India may have competitive edge over China: Top US think tank

India has better chances than China in enhancing its competitive position in the next two decades as the country's political-economic system provides an environment more conducive to entrepreneurial, innovative and inventive activity, an influential US think-tank said on Tuesday.

The think-tank, however, said in next two decades, China would continue to maintain technological and economic edge over India, but would have demographic disadvantage over its Asian neighbour.

As India and China continue to grow in prominence, each nation has certain advantages, but neither one is primed to have clear across-the-board competitive advantages over the other, RAND Corporation researchers have said in a report.

While India's prime working-age population will overtake China's in 2028, China has advantages in science and technology, as well as in developing its national defence capabilities, according to the report.

But India's more open and flexible political structure may allow it to move nimbly in making adjustments to its policies and thereby improve its relative performance, perhaps providing it with an advantage over China.

"Because of their population size and tremendous growth, India and China are both nations to watch," said Charles Wolf Jr, lead author of the study and a senior principal researcher with RAND, in a statement.

"What happens in these two countries as they continue to grow will have major repercussions in the rest of the world," he added.