comparative economic systems of china and india

7/30/2019 Comparative Economic Systems of China and India

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Shashank Agarwal, Ankit Aggarwal, Nivea Das, Vijay Singh

Comparative Economic Systems Of CAnd India


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CHINA...
http://www.youtube.com/watch?v=RcXnpEbRAwIhttp://www.youtube.com/watch?v=RcXnpEbRAwI


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CAPITAL-BEIJING.

Second largest economy and is increasingly playing an important role i

economy.

China had a population of 1.35bn in 2012 with GDP 7.298 trillion in 2012

population growth rate 0.481% (2012 est.)

Its the Largest Economy of the World and 3RD Largest Country by Area.

Only 1/10 of the land is cultivated leaving 90% People Living On 16% Of the

No. 1 largest exporterand second largest importer.

CHINA: AN OVERVIEW


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Pre Crisis (1949-1958):

1949: establishment of thepeoples Republic of China.

China followed on the footsteps of Soviets Union and concentrated on he

development strategy.

1953-57: First five year plan implemented.

After the Sino-Soviet Dispute the Govt. Invested heavily on Agricultural Se

1956-1957: Hundred flowers campaign

1958: Experiment of Great leap forward.

ECONOMIC HISTORY OF CHINA


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Post Crisis - Economic Reforms (1978 onwards):

In late 1970 and early 1980 Trade with other countries were allowed.

Economic zones created for attracting the Foreign Direct Investment (FDI).

Privilege to farmers for selling out their surplus crop in the open market was

Township Village Enterprises (TVE) were established.

Creation ofSpecial Economic Zones.

ECONOMIC HISTORY OF CHINACONTD.


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Present Scenario:

China is one of the fastest growing economies in the world ,at the sam

country faces complex economic, political , social and environmental challe

China's economy grew at an average rate of9% per yearduring the period 1

China have formed different planning forums to look after the dynamic

issues facing a region or a country.

ECONOMIC HISTORY OF CHINACONTD.


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Economic and Social campaignby the Communist party of China from 1958 t

Mao Zedong led the campaign and aimed to rapidly transform the country from

economy into a communist society through rapid industrialization and collectiv

The Great Leap ended in catastrophe, resulting in tens of millions of excess de

1. GREAT LEAP FORWARD


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The China National ETDZ are the special areas of the People's Republic of Ch

To encourage FDI.

Started with the SEZ for 3 three cities in 1978, as part of Chinas economi

were extended to the ETDZ in 14 cities in 1984.

Total 54 national-level ETDZ, among which, eastern coastal regions 34, M

regions 21.

2. ECONOMIC & TECHNOLOGICAL ZONES


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3. SPECIAL ECONOMIC ZONESEZ


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4. RURAL COLLECTIVENESS


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Framework For Evaluation O

Comparative Economic Syste


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In economics, inflation is a rise in the general level of prices of goods an

an economy over a period of time. When the general price level rise

of currency buys fewer goods and services. Consequently, inflation reflects a

thepurchasing powerper unit of money.

Inflation's effects on an economy are various and simultaneouslypositive and negative.

1. PRICE INFLATION


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CHINA & INDIA INFLATION RATE


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The unemployment rate can be defined as the number of people actively look

divided by the labour force.

Changes in unemployment depend mostly on inflows made up of non-emp

starting to look for jobs, of employed people who lose their jobs and look for n

of people who stop looking for employment.

2. UNEMPLOYMENT RATE


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CHINA & INDIA UNEMPLOYENT RATE


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The commercial balance or net exports (sometimes symbolized as NX), is th

between the monetary value ofexports and imports of output in an economy o

period. It is the relationship between a nation's imports and exports.

A positive balance is known as a trade surplus if it consists of exporting m

imported. A negative balance is referred to as a trade deficit or, informally, a tr

3. BALANCE OF TRADE


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CHINA & INDIA BALANCE OF TRADE


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An exchange-rate regime is the way an authority manages its currency in rela

currencies and the foreign exchange market. It is closely related to monetary p

two are generally dependent on many of the same factors.

The basic types are afloatingexchange rate, where the market dictates move

exchange rate; a pegged float, where a central bank keeps the rate from devifrom a target band or value; and afixedexchange rate, which ties the currenc

currency, mostly more widespread currencies such as the U.S. dollaror the eur

of currencies.

4. FOREX REGIME


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CHINA & INDIA FOREX REGIME


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The gross domestic product (GDP) is one of the measures ofnational income

GDP can be defined in three ways, which should give identical results.

First, it is equal to the total expenditures for all final goods and services pro

the country in a specified period of time (usually a 365-day year).

Second, it is equal to the sum of the value added at every stage of producti

industries, plus taxes and minus subsidies on products.

Third, it is equal to the sum of the income generated by production like com

employees, taxes on production and imports less subsidies, and gross operating

5. GROSS DOMESTIC PRODUCT


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CHINA & INDIA GDP


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INDIA


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Laissez-faire is an economic environment in which transactions between priva

free from government restrictions, tariffs, and subsidies, with only enough r

protect property rights.

The phrase laissez-faire is French and literally means "let [them] do", bu

implies "let it be," "let them do as they will," or "leave it alone". Scholars genea laissez-faire state or a completely free market has never existed.

1. LAISSEZ FAIRE ECONOMY


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The Licence Raj was a result of India's decision to have a planned econom

aspects of the economy are controlled by the state and licences are given to a s

Private players could manufacture goods only with official licenses. The quan

they were allowed to produce was determined by the license regime, not by

demand.

2. LICENSE PERMIT RAZ


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India had started out in the 1950s with:

Macro stability

High growth rates

A promotional state

Social expenditure awareness

Openness to trade and investment

LICENSE PERMIT RAZCONTD.

However, by the 1980s, the

left with:

Low growth rates

Closure to trade and investm

A license-obsessed, restrictiv

Inability to sustain social exp

Macro instability, indeed cris


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The economy of India is the 10th largest in the world by nominal GDP and th

by purchasing power parity (PPP).

GDP1.824 trillion

India is the 19th-largest exporter and the 10th-largest importer in the world.

Exports - $309.1 billion

Indias major export partners are UAE, China, USA and Singapore.

Imports - $500.3 billion

Indias major import partners are China, UAE, Saudi Arabia, US, Switzerland.

3. PRESENT INDIAN ECONOMIC POLICY


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Indian economic policy may be divided into 2 stages:

Stage I (194791) Stage II (1991 Onwards)

Democratic Socialism

Controlled Economy

PRESENT INDIAN ECONOMIC POLICYCONTD.

Before 1947 Colonialism Restrictive tradeBritish

Ec

19471991 GAAT Era Transition period Gov. Con

1991 onwards WTO Era (1995) Free trade agreementLiberalizat

Ec

Liberalized economic po

Competitive economic en


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The Hindu rate of growth refers to the low annual growth rate of the socialist

India before 1991, which stagnated around 3.5% from 1950s to 1980s, whi

income growth averaged 1.3%.

The economy of India has been growing at rate of around 6-8% sinc

liberalisation began in the 1990s.

In 1947, the average annual income in India was $439, compared with $61

$770 for South Korea, and $936 for Taiwan. By 1999, the numbers were $1,

$13,317; and $15,720.

4. HINDU RATE OF GROWTH


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HINDU RATE OF GROWTHCONTD

Per capita GDP of South Asian economies & S Korea (1950-1995)


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The roduction and imports less subsidies, and gross operating surplus.

5. MOVEMENT FROM LOCALIZATION TO GLOBALIZ


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RECOMMENDATION


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There should be more financial subsidies to support the technological u

enterprises and individuals to start their own business so as to expand dome

and open up the market.

To adjust the distribution pattern of national revenue and raise the share of la

and raise the level of household consumption which will facilitate the fendogenous motivation for long-term economic growth.

We need to support the development of SMEs and improve the financing env

SMEs to enhance economic vitality.

TO CHINA


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Shift Focus slightly from National Income.

Focus on Agricultural Exports.

Limit Unnecessary Imports.

Deal with Corruption.

Create awareness.

TO INDIA


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THANK YOU!!

comparative economic systems of china and india

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