(india vs china) a comparative analysis
TRANSCRIPT
PRESENTATION BY-RISHIKESH RAJ
POPULATION
Current population(2015) of china-1.39 billion and india-1.27 billion aprox.
ECONOMYINDIA
Market based system
Foreign trade and foreign investment as integral part of Indian economy
Fastest growing economy
World’s second largest labor force
CHINA Centrally planned Economy
Private businesses and capitalism were suppressed
Privatization of Farmland
Promotion of foreign investment
Flourishing small scale entrepreneurs
What are India & China famous for today ?
Call centers &
computer
Engineers(Er.)
Low-priced consumer goods(chines mobile,eg-xiomi)
AGRICULTUREINDIA
India is an agricultural country. Growth of service sector is pushing
down the contribution of agriculture.
Contributing 13.2% of the GDP. Largely depends on monsoon. Provides employment to two-thirds
of the total population. 15% of export earnings Rural women play a vital role, 50%
of rural labor force. Yields per hectare of crops in India
are very low
CHINA Agriculture accounted for 10.6 % of
the GDP 33o million- over 45% of labor force
still makes living from farming. Farming methods have been
improved in China. China produces wheat, rice,
potatoes, peanuts, millet, cotton. Only 15 percent of the total land
available in China can be cultivated. more than 75 percent of the total
cultivated land is used for producing food crops.
COMPARISON
Comparing India and China’s Growth Stories
Indicators India ChinaPolitical System
Multi-party Democracy
One-party authoritarian rule
Speed of Growth
Economic reforms started in 1991. Average 6% growth rate in past two decades.
Economic reforms started in 1978. Average 9.5% growth rate in past two decades.
Areas of Specialization
Rising power in software, design, services, and precision industry.
Dominant in mass manufacturing, electronics and heavy industrial plants
Comparing India and China’s Growth Stories
Indicators India ChinaGini index (standard measure of inequality)
36.8
47.0 (up 10 points from 15
yrs ago)
Foreign Direct Investment
6.8% (up from 0.3% in 2004)
17.8%
Future Areas of growth
R&D, bio-technology, high-value IT enabled services (legal, medical, engineering architecture), manufacturing, agro-based industry
IT business, services and continued manufacturing
Why India lags behind china in FDI attraction?
The main reasons are:-
Political structureInfrastructure gapMonetary and fiscal policiesProductivity BureaucracyAvailability of capitalTransport costsCorruption
Why china is best FDI destination?
The main reasons are:-
Rapid economic growth since reform period Infrastructure availabilityAbundance of labor and its low costRapid expansion of china's domestic market Role of overseas ChineseIncreased integration with the worldLabor lawsPolitical system and stability
HOW CAN INDIA ATTRACT MORE FDI ?
Political restructuring Promote agro based export industries Remove corruption Increase infrastructure investment Accelerate privatization efforts Improve educational fitness Remove FDI hurdles Provide monetary and fiscal benefits Reduce delay in Approving FDI projects