Description

‘Chindia’ have grown rapidly in the last decade, at average annual growth rates of 8.5 percent and 6.1 percent respectively, and they are expected to continue their fast growth in the years to come. The economic fundamentals of both nations, with their enormous populations of young workers and consumers points to strong growth for decades under almost every forecast. Moreover, comparing both countries, China is well ahead of India in terms of growth. However, analyst suggests that India is looking for steady and sustained economy model by incremental changes and liberalization. China has become a international hub for hardware design and manufacturing while India specializes in pharmaceutical sector and IT/BPO services, call centers, business back-office operations and R&D. Furthermore, In terms of foreign investment China attracted seven times more FDI than India in 2004, 3.2% of its GDP compared with 1.1% for India (UNCTAD’s FDI Performance Index, 2004).