India and China Economy

Ananta Giri

Managerial Economics

Westcliff  Universiity

Date: April 2,  2018

Abstract

In this CLA 1 paper it is generally about  basically talks regading the  economy of  2  countries China and India.  In this paper I have also  compared  the  economy of  both  China and India. This paper also provide detail information abot  GDP per capita also economic growth.    I will be discussing about  different  causes of  develoment  of Chinese economy.

Introduction

India is the country having higb democratic view in the world. In case of  China , It is country with very high populaion compared to India.   (western European world).   "India and China are the bigger market for them  because of due to ever increasing middle class consumer society." The  frequent increment in the market power of  this two powerful economies have been a easy access in the context of global economy in regards of corporate sector. United states  is also considering India as leader .

President Barack Obama said, “It is an emerging power and a responsible global power”.

 With an enormous young peoples  (Minimum age of  25) and with an outstanding  average 8% annual GDP growth rate. As we can see in future perspective India is expected  to be power house of the world in the case of  economic activity. (Goldman Sachs and other economists)

 In case of China it is as equal can be taken as best economy in the context of Asia. china economy is also given good mark by European countrys too.   In todays economic world both  India and China are the  competitors . who will be  influencing  higher  in Asia and global market India or China? as would the question would arise and its a difficult question to answer. As for the fact both the countries are being dominant in Asia. In  today context , China is more superior to India . In every sectors it is competitive i.e.  manufacturing, trade and commerce its a huge achievement for the country china.  

 India and China are on their competitive road with a vision of proving their  to prove their dominance in Asia. Beside being a competitor , they have got same resourece i.e. the young working population as a powerful force which would help them to become and achieve  an outstanding economy in world.   we can easily see that how China has already commenced  to  shape up their  economy through its own communistic way  of  development strategy i.e. antithesis of liberal capital economy.

Comparision Of China And India Economy

The economies of India and China considered to be   largest economies in today's  world. While we can observe major  differences in contxt of  size, composition and other quantitative and qualitative features while having motive of  comparing China and India. In case of  India, It  has very smaller economy as compared to china ,  considering  only about  a 5th of China's. Its  exports are also  fraction of China's,as it applies in the contsxt of import too.   India's economy is Highlt  dependent on huge  internal market having  external trade accounting only with  20% of the Nation's GDP.  We can observe that  vague  difference inregards of  China. As  large portion of china's  economy is because of  an  International trade. In fact, India's balance of payments (BoP) on its current account  is negative .  

In the context of china , The growth rates that has been achieved by them is controlled by indices of inequality.   Current Gini Index, a measure of inequality of income/wealth, of India is 36.8, where as  for  China it  is 46.9, which we can see is comparatively  very large.  However In case of China it is sucesfful to decrease its poverty line to 10% as India is county whose 22% are living below poverty line.

I would like to further compare India and China economy with the help of following factors which would help us to undertand more cleary.

1. Political Economy

The history of China and India is  different and is also very  critical for  explaining regarding  the growth contrast. China  always has been a large a stable which has been  centrally controlled  state which we can see  through  out its history where it lacks limited periods of instability and  single authority. While incase of India's history it is exactly reverse.

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1. Infrastructure

while doing Comparision  to India, China has a best improved infrastructure. Some of the important factors that differntiate them are  manpower and labor development, water management, health care facilities and services, communication, etc. While  India has also been developing phase ,it is still facing the obstacle of  lack of civic amenities.  unlike India, China is still spending large amounts with a motive of bringing improvement in manpower  development and strengthening  infrastructure.

1. Education

In field of  Education, 99.1 % of Chinese children would  attend school for 9 years, having very huge level of literacy.  While in case of   India, literacy is 50 to 60% .Both the countries faces similar challenges in education sectors having an tough competition for admission matter. But in case of  China it is well developed   100 high quality institutions and is still increasing to  invest in many other institution too.   As a result China is  producing top quality students comparing  India.  

1. Health

In general, for both countries, infectious diseases is rapidly been increasing . while it is very  much higher in the context of  India.   WhilE  globalisation would help to  widen inequalities in health and healthcare in both countries there is a fact  that local circumstances are  always essential  especially having a full  respect towards  the structure and financing of health care and in  the activty of implementation inregards of  health policy.

Understanding about GDP per capita and Economic Growth Rate of  two giants china and India

In  year 2016  GDP per capita of China was  $8123.2 while in case of India  the GDP per capita  was $1709.5 (World Bank, 2016).  Now coming to the year  2017 the GDP per capita of China  Drastically expanded  to amount of   $8,833.28. Similar case was with the India’s GDP per capita. It was also stretched  to  amount of  $1,852.09.

 GDP per capita of China and India (2011 to 2017)