Tuesday, June 8, 2010

China Vs India (Threat/Superpower) /Should India go China Way

Facts and Statistics:

 India and China have a lot in common like the diverse culture
ancient history and both are among the fastest growing major
economies of the world.
 While India is the 12th largest economy in terms of the
exchange rates, China occupies the third position. Compared to
the estimated $1.242 trillion GDP of India, China has an average
GDP of around $8 trillion.
 India's Growth rate at 7.2% vs China's 10%
 China is much modern when it comes to agriculture and has higher
yield.
 China though a communist country started liberalisation in
mid 1980s as compared to India in 1991.
 China's military expenditure at $80 Billion vs India's $22
Billion also China's army is the biggest employer in the world.
 India's young population is growing whereas in China due to one
child policy China is ageing
 India had SEZ policy in 2000 vs China in 1980. The average size
of SEZ in India is very small at 200acers.
 Indian companies do not get the price advantage the Chinese
manufactured goods get, thus inorder to compete with China Indian
companies will have to restructure their business. At the same time
issues such as Toxic Toys and Artificial Milk from China and low
reliability on the other hand India is a fairly reliable brand.
 More importantly China is more of a manufacturing economy and
India is more into service like outsourcing and software.
 Rather than wasting resources on conflict China-India can co-
operate with each other to become superpowers because China
has manufacturing and India is good at service sector.
 Quality of life: India Ranks 45 China ranks 75 out of 135
countries surveyed
 China is not letting Yuan appreciate inorder to give it exporters an
added advantage this makes Indian companies more difficult to
compete the USA is thinking of imposing a duty to remove this
disadvantage.