In a little over two decades, starting in 1990, India pulled the second-most number of people in the world out of poverty. Despite reservations about the accuracy of its growth numbers, Asia’s third-largest economy is batting in the big league, according to a McKinsey Global Institute (MGI) report released today (Sept. 12). It is ranked among 18 “outperforming” emerging economies that have cumulatively lifted a billion people out of extreme poverty between 1990 and 2013.


MGI’s study involved a 50-year (1965-2016) analysis of 71 countries.


China topped the chart with 730 million people.


Interestingly, big companies and a manufacturing boost are driving India’s growing GDP, like in the case of the other high performers. “Highly competitive businesses have also played a critical role,” Jonathan Woetzel, director of MGI and McKinsey & Company senior partner in Shanghai, said in a press release.

有趣的是,大公司和制造业的发展推动了印度GDP的增长,就像其他表现优异的国家一样。麦肯锡全球研究中心主任、麦肯锡在上海的高级合伙人Jonathan Woetzel,在一份新闻稿中表示:“竞争激烈的企业也为印度的发展发挥了关键作用。”

The 18 outperformers identified in the report have almost twice as many large firms (publicly listed ones with annual revenue of over $500 million) as other developing countries, adjusted for the size of the economies.


So clusters of innovation are popping up. For instance, the number of patents granted annually in Bengaluru, Beijing, and Shanghai grew more than twice as fast as in Silicon Valley, MGI found. In fact, around eight in 10 Chinese and Indian cities analysed increased their number of patents by double digits annually while just three in 10 US cities managed to do so.


Meanwhile, these emerging economy firms are also paying more attention to innovation, deriving 56% of their revenue from new products and services—eight percentage points above their peers in advanced economies—the survey showed.


“As China moves away from labour-intensive manufacturing and toward more R&D-intensive manufacturing, it is creating export opportunities for India, Vietnam, Indonesia, Uzbekistan and other emerging low-income economies,” the MGI report said.


China still captured 53% of the labour-intensive manufacturing exports among emerging markets in 2016 but its share dropped three percentage points since 2014 while India’s grew from 8.3% to 9%.


India is still poor and lots of Indians are still poor, but capitalism and the global economy are ameleorating this problem not making it worse