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8 percent in the fiscal first quarter, its best performance since 2007,
Making an in depth study and analysis of India vs. China economy seems to be a very hard task. Both India and China rank among the front runners of global economy and are among the world's most diverse nations.
However, if we try to properly understand the various economic and market trends and features of the countries, we can make a comparison between Indian and Chinese economy.
Going by the basic facts, the economy of China is more developed than that of India. While India is the 12th largest economy in terms of the exchange rates, China occupies the third position. Compared to the estimated $1.209 trillion GDP of India,
If we make the analysis of the India vs. China economy, we can see that there are a number of factors that has made China a better economy than India. First things first, India was under the colonial rule of the British for around 190 years. This drained the country's resources to a great extent and led to huge economic loss. On the other hand, there was no such instance of colonization in China. As such, from the very beginning, the country enjoyed a planned economic model which made it stronger.
It forms a major economic sector in both the countries. This leads to better quality and high yield of crops which can be exported. Animal husbandry in India. China started towards the liberalization of its market economy much before India. employed 52% of the total workforce and despite a steady decline of its share in the GDP. is still the largest economic sector and plays a significant role in the overall socio-economic development of India. India was very slow in embracing globalization and open market economies. the agricultural sector of China is more developed than that of India. Agriculture Farmers work inside a rice field in Andhra Pradesh. . This strengthened the economy to a great extent. China welcomed foreign direct investment and private investment in the mid 1980s. Main articles: Agriculture in India. Liberalization of the market In spite of being a Socialist country. On the other hand. Agriculture and allied sectors like forestry.Agriculture Agriculture is another factor of economic comparison of India and China. where farmers still use the traditional and old methods of cultivation. logging and fishing accounted for 17% of the GDP in 2009. However. the agricultural techniques used in China are very much developed. Forestry in India. and Fishing in India India ranks second worldwide in farm output. Unlike India. India is the second largest producer of rice in the world after China and Andhra Pradesh is the 2nd largest rice producing state in India with West Bengal being the largest. While India's liberalization policies started in the 1990s.
a lack of international ambition and a history of over-protection at home. are grabbing the attention of the world media. and how their current growth presages the coming "Asian century". In the international press. power. road and water management in a concerted way. China is investing its surplus in railroad. It is not just that they both are countries with large populations covering substantial and diverse . but it has understood clearly the importance of modernizing its basic infrastructure to generate employment and adequate utilization of its vast population. They have long been accepted as the regional super powers and are now perceived as the rising super powers of the world. there is almost an obsession with these two economies. the two largest and fastest growing economies in the world.The Economist concludes that India's economic backwardness has little to do with democracy as such. PREFACE : ³China and India. but has a lot to do with corruption.´ INTRODUCTION: China and India seem to be the hot topics in the world economy today. fiscal mismanagement. There is no question that China still lacks adequate infrastructure. Conclusion In contrast to India's neglect of the basic infrastructure. financial systems and economic environment and takes a look at the long term perspective of their economies. This project report brings to light some of the similarities and differences between the two countries in term of demography.
and this even infects some Indian analyses. Most of all they are cited as the current "success stories" Two economies in the developing world that have apparently benefited from globalization. The rapid economic growth and structural transformation in China are not just eyed with envy. with relatively high and stable rates of growth for more than two decades and substantial diversification. Thus there are those who argue that the recent Chinese economic success is because of liberalization and openness to foreign trade and investment. In the outside literature.geographical areas. But in fact there are crucial differences between the two economies which render such similarities very superficial. these economies are often treated as broadly similar in terms of growth potential and other features. they are typically invoked to justify the economic policy of choice. others point out that the early Communist history of land reforms and egalitarian policies formed the essential basis upon which all subsequent change has depended. By contrast. mostly in the form of a longing eastern gaze. In India too the obsession with China is now well-developed. but also with huge economic potential. and which mean that individual policies cannot be taken out of context of one country and simply applied in the other to the same effect The economy of India is the eleventh largest economy in the world by nominal GDP and the fourth largest by purchasing power parity (PPP) .
Yet both economies now need to fine-tune their development strategies by expanding their economic power .China and India represent the future of Asia ± and quite possibly the future for the global economy.
29 The economic expansion that started in 2003/04 provides evidence that India¶s growth rates in favorable circumstances are comparable to Asia¶s powerhouse. especially in terms of privatization and labor laws. 3. investment in infrastructure is imperative to increase the supply-side potential of the Indian economy. come equally important consequences. whereby GDP would expand at an annual rate of 10 per cent. Whereas high domestic demand has increased inflationary pressures in the Indian economy and dragged the current account into deficit. however. 1. With that role. The resulting heightened sense of economic insecurity that has stoked an increasingly dangerous protectionist backlash could well pose yet another major challenge to China and India ± learning how to live with the consequences of their successes. 5. 6. Population Economy Industry Education system Environmental consequences Growth investments Indian economy introduction Chinese economy introduction . High growth. A gradual phasing-out of budget subsidies. In this regard. 4. replaced by direct cash transfers. China¶s economy has experienced deflationary tendencies that seem to reflect excess supply in the economy. An increase in fiscal revenues would provide resources for spending in education. health and infrastructure. IT-enabled globalization has introduced an unexpected complication into the process ± a time compression of economic development that has caught the rich industrial world by surprise. 2. could also form an important part of fiscal reform. China. The Indian government has recently signaled its intention to lift the economy to a higher growth path. If these mid-course corrections are well executed ± and there is good reason to believe that will be the case ± China and India should play an increasingly powerful role in driving the global growth dynamic for years to come. without further worsening the delicate state of fiscal balances. provides the best antidote to poverty. according to the government.Conclusion:bases. It is equally critical to push forward with the economic reforms that have progressed slowly of late. The recent growth in industry is a positive sign of the economic expansion reaching beyond the services sector ± a necessary evolution for employment growth and further progress in poverty reduction.