INDIA AND CHINA

ECONOMIC COMPARISION

PRESENTATION BY-

ARZOO AGRAWAL

INTRODUCTION• India & china are two Asian of giants.

• India was under the colonial rule of the British for around 200 years.

• There was no such instance of colonization in china.

ECONOMIES OF BOTH COUNTRIESINDIA•Mixed economy

•Foreign trade and foreign investment are essential part of Indian economy.

•Fastest growing economy

•World’s second largest labor force

CHINA•planned economy

•Private business has many restriction.

•Privatization of farmland

•Promotion of foreign investment

•Developing small scale entrepreneurs

GROWTH STORIES OF INDIA AND CHINA

INDICATORSPolitical system

Speed of growth

Area of specialization

INDIAMulti-party democracy

Economic reforms started in 1994. Average 6% growth rate in past two decades.

Rising power in software, designing, service and IT industry.

CHINAOne- party rule.

Economic reforms started in 1978.Average 9.5% growth rate in past two decades.

Dominant in mass manufacturing, electronics and heavy industries plants.

COMPARISION OF GDPGDPGDP(purchasing power party)

GDP(real growth rate)

GDP(per capita)

Population(below poverty line)

Inflation rate(consumer price)

Labour force

Unemployment rate

INDIA$4.492 trillion(2011 est.)$4.735 trillion (2012 est.)

6.8%(2011 est.)5.4%(2012 est.)

$3,700(2011 est.)$3,900(2012 est.)

29.8%(2010 est.)

8.9%(2011 est.)9.2%(2012 est.)

498.4 million(2012 est.)

9.8% (2011 est.)9.9% (2012 est.)

CHINA$11.49 trillion(2011 est.)$12.38 trillion(2012 est.)

9.2%(2011 est.)7.8%(2012 est.)

$8,500(2011 est.)$9,100(2012 est.)

13.4%(2010 est.)

5.5%(2011 est.)3.1(2012 est.)

795.4 million (2012 est.)

6.5% (2011 est.)6.4% (2012 est.)

COMPARISION OF GDPGDP

Budget

Industrial production growth rate

Exports

Export partners

Imports

Imports partners

INDIA

Revenue $171.5 billionExpenditures $281 billion (2012 est.)

4.8% (2011 est.)

$305 billion (2011 est.)$309.1 billion (2012 est.)

UAE 12.7%, US 10.8%, china 6.2%, Singapore 5.3%, Hong Kong 4.1%, (2011)

$490 billion(2011 est.)$500.3 billion(2012 est.)

China 11.9%, UAE 7.7%, Switzerland 6.85%, Saudi Arab 6.1%, US 4.9%(2011)

CHINA

Revenue $1.838 trillionExpenditure $2.031 trillion (2012 est.)

13.4% (2012 est.)

$1.899 trillion (2011 est.)2.021 trillion (2012 est.)

US 17.1%, Hong Kong 14.1%, Japan 7.8%, south Korea 4.4%, Germany 4%. (2011)

$1.74 trillion(2011 est.)$1.78 trillion(2012 est.)

Japan 11.2%, south Korea 9.3%, US 6.8%, Germany 5.3%, Australia 4.6% (2011)

COMPARISION OF GDP GDP

Reserve of foreign exchange gold

Current balance account

INDIA

$297.9 billion(31 December 2011)$287.2 billion(31 December 2012)

-$46.91 billion (2011 est.)-$80.15 billion(2012 est.)

CHINA

$3.213 billion(31 December 2011)$3.549 billion(31 December 2012)

$201.7 billion (2011 est.)$170.8 billion (2012 est.)

VALUE ADDED BY INDUSTRY

IMPORT AND EXPORT

TRADE PERCENTAGE TO GDP

CHINA 50% INDIA 53%

GOVERNMENT DEBT

CHINA - INDIA 50.3%

AGRICULTURAL SECTOR

INDIAGrowth of service sector is pushing down the contribution of agriculture.

Contributing 17.2% of the GDP.

Largely depends on monsoon.

Provides employment to two-third of the total population.

CHINA330 million over 45% of labour force still make living from farming.

Agriculture accounted for 10.6% of the GDP.

Farming method has been improved in china.

Only 15% of the total land available in china can be cultivated.

MANUFACTURING SECTOR

INDIAManufacturing contributes around 15% of GDP of the country.

India ranks among top 12 producer of manufacturing value added products.

CHINAChinese manufacturing sector accounts for 43% of Chinese economy.

Chinese manufacturing sector rank 4th in the world after US, Japan and & Germany.

SERVICE SECTOR

INDIA 54% of GDP.

Since 1978 to 2011:Average annual growth rate is 8.1%.

Employment opportunities:LOW

Most advanced service sector:Delhi with GDP share of 77

CHINABelow 41% of GDP.

Average annual growth rate is 10.8%

Employment opportunities:HIGH

Most advanced service sector:Beijing with a GDP share of 61%

INDIA’S PROBLEM

• Poor Infrastructure.

• Insufficient investment.

• Corruption all level.

• High level of debt.

CHINA’S PROBLEM

• Over population and Unemployment.

• Growing income inequality.

• Undervaluation of Yuan.

• Shortage of power.

CONCLUSION There are various issues where India is

ahead of china and various issues which leads china.

These all issue create difference between the two economics but at the same time by promoting various advanced technologies and renewable energies the solution can be found to their problems.