.

high import duties and lesser private participation characterizing it.  The independence-era Indian economy (before and a little after 1947) was inspired by the economy of the Soviet Union with socialist practices. leading to massive inefficiencies and widespread corruption . The Economy of India is the ninth largest in the world by nominal GDP and the third largest by purchasing power parity (PPP). large public sectors.

2011) $4.469 trillion (PPP: 3rd.846 trillion (nominal: 9th.) .6% (2011 est. 2011) GDP growth 8.703 (PPP: 127th. services: 55. 2011) $3.5% (2010–11) GDP per capita $1.1%. 2011) GDP by sector agriculture: 18.527 (nominal: 135th. industry:26. Fiscal year     1 April – 31 March GDP $1.3%.

steel.     Inflation (CPI) 6. food processing. transportation equipment.) Main industries : telecommunications. textiles. machinery.6 million (2011 est. cement. pharmaceuticals .8% (2011 est.) Unemployment 9. chemicals. mining.55% (January 2012) Population below poverty line 37% Labour force 487. petroleum. software.

.

It is the world's fastest-growing major economy. with growth rates averaging 10% over the past 30 years.  economic reforms initiated after 1978 began to generate significant and steady growth in investment. consumption and standards of living . The People's Republic of China (PRC) is the world's second largest economy after the United States.

2011) .301 trillion nominal: 2nd $11.31 trillion PPP: 2nd GDP growth : 9. 2011) $8. Currency:      Renminbi (RMB) Unit: Yuan (CNY) Fiscal year: 01 January to 31 December GDP : $7.184 (nominal: 90st.394 (PPP: 90th.5% GDP per capita: $5.

steel. coal.9% (January 2011) Gini coefficient 41.8%). 2010) Unemployment 4. aluminum. iron.6%) (2010) Inflation (CPI) 4.6%).5 Labour force 780 million (1st.2% (July 2010) Main industries: mining and ore processing. machine building. services (43. armaments. textiles and apparel . GDP by sector:      industry (46. agriculture (9. and other metals.

.

However. China economy seems to be a very hard task. . Making an in depth study and analysis of India vs. we can make a comparison easily. Both India and China rank among the front runners of global economy. Both the countries were among the most ancient civilizations and their economies are influenced by a number of social. economic and other factors. political. if we try to properly understand the various economic and market trends and features of the two countries.

7 billion 11% $2.2% Fiscal Deficit Foreign Direct Investment Gold Reserves Foreign Exchange Reserves World Prosperity Index Mobile Users Internet Users 5.90% $1124 6.6 million 9.16 million. 21.5% $12.65 trillion 58th Position 687.1% 780 million 4.8% China 9.518 5.5% $9.40 billion 15% $2.60% $7.71 million 81 million .Facts GDP growth Per capital GDP Inflation Labor Force Unemployment India 8.55 % 487.41 billion 88th Position 842 million 123.

Agriculture  Agriculture is another factor of economic comparison of India and China. This leads to better quality and high yield of crops which can be exported. the agricultural sector of China is more developed than that of India. However. the agricultural techniques used in China are very much developed. . Unlike India. It forms a major economic sector in both the countries. where farmers still use the traditional and old methods of cultivation.

Seven Indian cites are ranked as the world's top ten BPO's while only one city from China features on the list .76 billion.7 billion while China earned $35. India's earnings from the BPO sector alone in 2010 is $49.IT/BPO  One of the sectors where Indi enjoys an upper hand over China is the IT/BPO industry.

Liberalization of the market  In spite of being a Socialist country. On the other hand. China started towards the liberalization of its market economy much before India. China welcomed foreign direct investment and private investment in the mid 1980s. . India was a little slow in embracing globalization and open market economies. This strengthened the economy to a great extent. While India's liberalization policies started in the 1990s. This made a significant change in its economy and the GDP increased considerably.

.

The Indian capital or stock market is both transparent and predictable. The Chinese capital market lags behind the Indian capital market in terms of predictability and transparency.Company Development  Tax incentives are one area where China is lagging behind India. As far as capitalization is concerned the Shanghai Stock Exchange is larger than the BSE since the SSE has US$1. India has Asia's oldest stock exchange which is the BSE or the Bombay Stock Exchange. . But more than the size what makes both these stock exchanges different is that the BSE is run on the principles of international guidelines and is more stable due to the quality of the listed companies. In addition to this the Chinese government is the major stake holder of most of its State-owned organizations hence the listed firms have to run according to the rules and regulations laid down by the government. Hence India is ahead of China in matters of financial transparency.833 listed companies. namely the Shenzhen and Shanghai stock exchange. Whereas China is home to two stock exchanges.7 trillion with 849 listed companies and the BSE has US$1 trillion with 4.

9 Export Balance .2 20.China's import and exports for the year 2010.3 36.9 37.4 34.6 Value Import and 228.0 40.7 36.1 33.9 Total Import and Export 2837.8 1704.7 Absolute Value Year-on-year for first 11 growth % for months first 11 months 14238.4 12534.3 -3. Year-on-year Absolute Value growth % for for November November Export Value Import Value 1533.3 26772.3 1304.

.

.

and some economists  India's agricultural sector . India's neglect of the basic infrastructure  Indian policy makers.

Sign up to vote on this title
UsefulNot useful