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• Privatization reduced the role of the state and public sector in business.
• Globalization made it easier for the MNCs to operate in India.
PHASE 1 : 1978-1984
PHASE 2 : 1984-1993
PHASE 3 : 1993-2005
Deng's first reforms began in agriculture, a sector
long neglected by the Communist Party.
Decollectivizing agriculture and emphasizing the
Household-responsibility system, which divided the
land of the People's communes into private plots
A dual price system was introduced, in which state-
owned industries were allowed to sell any production
above the plan quota, and commodities were sold at
both plan and market prices
Controls on private businesses and government
intervention continued to decrease, and there was
small-scale privatization of state enterprises which
had become unviable
Reopening of Shanghai Stock Exchange closed by
Mao 40 years earlier
Inflation became problematic in 1985, 1988 and 1992
Privatizations began to accelerate after 1992, and the
private sector surpassed the state sector in share of
GDP for the first time in the mid-1990s
In 1997 and 1998, large-scale privatization occurred, in which
all state enterprises, except a few large monopolies, were
liquidated and their assets sold to private investors
Between 2001 and 2004, the number of state-owned enterprises
decreased by 48 percent
reduced tariffs, trade barriers and regulations, reformed the
banking system, dismantled much of the Mao-era social
welfare system, forced the PLA to divest itself of military-run
businesses, reduced inflation, and joined the World Trade
Organization
The domestic private sector first exceeded 50% of GDP in
2005 and has further expanded since
Source : http://en.wikipedia.org/wiki/File:Prc1952-2005gdp.gif
Adoption of egalitarian and populist policies
Subsidies and control over the health care sector
Hault to Privatization
The privileged state sector was the primary recipient of
government investment
CHINA’S TRADE STATISTICS
China’s trade with the World
China’s Top Exports
China’s Top Imports
China’s Top Trade Partners
China’s Top Export Destinations
China’s Top Import Suppliers
Not Similar Economies
Institutional conditions
The financial sector
Rates of GDP growth
INDIA CHINA
GDP
Nominal 2009 $1.367 trillion $4.99 trillion
PPP 2009 $3.862 trillion $9.05 trillion
GDP Growth
Rate 8.80% 9.10%
GDP Percapita
$ 1124 (142th) $ 3735
Nominal 2010 (97th)2009
$ 3176 (127th) $ 6778 (98th)
PPP 2010 2009
Source: wikipedia.org/wiki/Economyof_India
wikipedia.org/wiki/Economy_of_the_People's_Republic_of_Chin
a
INDIA CHINA
GDP by Sector Service 57% 42.60%
Industry 28% 46.80%
Agriculture 15% 3.30%
Inflation (CPI) 8.62% 3.30%
Population
Below poverty
line 37% 2.80%
Labour Force 467 million 813.5 million
Unemployment 9.40% 4.20%
Ease of Doing
Business In
Rank 133rd 79th
Source: wikipedia.org/wiki/Economyof_India
wikipedia.org/wiki/Economy_of_the_People's_Republic_of_Chin
a
INDIA CHINA
Source: wikipedia.org/wiki/Economyof_India
wikipedia.org/wiki/Economy_of_the_People's_Republic_of_Chin
a
The service sector has been growing rapidly over the
last decade and the trend is likely to continue. This
has become the main contributor to the GDP
India made the transition from an agricultural
economy to a service economy in 1979.In 1985, the
service sector accounted for 47 per cent of GDP
The share of service sector in the real GDP in India
has surpassed that of agriculture and industry at a
relatively faster pace as compared to other
industrialized
In India, the service sector contributes to more than
54 per cent of GDP while its GDP share in China is
much smaller (below 41 per cent in 2004)
‡China is just showing a gradual growth in the field
of service sector. ‡India will grow faster than China
by 2014
High savings curtails consumption
Reliance on investment expansion ‡increased growth
volatility
Diminishing returns
misallocation of capital ‡non-performing loans
Lack of investment funds led to neglect of infrastructure
High production costs ‡stunted manufacturing sector ‡will
eventually constrain the growth of high-tech centres IT and IT-
enabled services are skill-intensive, rather than labour-
intensive
Jobless growth: rural unemployment and poverty
Lack of progress in urbanization
India seems to have a brighter future prospect compared to China
with a population that is growing younger and will continue to
supply young work force for a long time compared with the aging
Chinese population, the result of the Chinese government planning
strategies and rapid rise in life expectancy of the Chinese people.
‡‡By 2028 India is expected to be fifth largest consumer economy
due to sustained growth. ‡We can make India the super power
country of the world if we work together by making it a corruption
free country.
Presented by:
Kritika sharma (gen92/55)
Anshul kaushal (ib/04)
Ashwini kumar (ib/05)
Devkant rath (ib/09)