Monday, November 2, 2009

India and China: An Economic Comparison

India and China are the world’s next major powers. And in a global economy, affected by the financial crisis, where most advanced countries are slumped into recession, India and China are growing. In a PPT India and China it has statistically compared the economies and industries between these two countries.

Both the countries have an important role to play in the world economy, with China embracing private entrepreneurship and India facilitating globalization within its economy.

Growth of the Indian and Chinese Economies

Both India and China have registered strong economic growth since 1980 and opening up to international trade and capital. The Indian and Chinese economies have benefited from FDIs that have provided new goods and services and therefore a spurt in industrial growth. The Chinese and the Indian economies rank number 1 and 2 respectively as the fastest growing economies in the world.

But the growth of the Chinese economy has been more spectacular than India and China today has surpassed India on the more important economic and welfare indices. China’s per capita GDP growth has averaged 8% since 1980, which is double that of India’s per capita GDP growth rate. The Chinese economy is much larger than the Indian economy and labor-intensive manufacture exports contribute almost 40% to the Chinese GDP compared to only 16% in India.

Welfare Indicators of India and China

As compared to India, China also scores higher on welfare indicators such as living standards, poverty ration, female adult literacy and life expectancy by a wide margin.

Since 1990, China has tripled per capita income and has eased 300 million out of poverty. While India still presents a picture of extreme poverty, Indians are playing invaluable roles in the research and development centers of global tech giants, sprouting all over India. Indian companies are also excelling in producing high-quality goods and services at very low prices, competing for a global marketshare.

Growth Focus for India and China

Technical and Managerial skills in both China and India are becoming more important than cheap assembly labor. China will continue to dominate mass manufacturing and is still investing in building multibillion-dollar electronics and heavy industrial plants. While India is a leading force in software, design, services and the precision industry.

A huge and demanding consumer class is also pushing through innovation in India and China. Chinese and Indian consumers want the latest technology and features.

China and India, are set to transform the global economy of the 21st-century, through its young, dynamic and driven workforce, powering worldwide growth and change in a range of industries.

No comments:

Post a Comment