Can India exceed China in economy after 20 years?

* From planned economy to free market powerhouse: The post - Mao era ( 1976 onwards )

Poor Technological Development: Due to poor infrastructure of R&D and unskilled employees, technological innovations may not possible

China’s exceptional economic growth could barely be suppressed in China’s borders. Although China was both a giver as well as a receiver of economical communication throughout Eurasia. One of China’s many effects of their economic transformation lay in the dispersal of its tegnological advancements to people and places as the migration of soldiers, merchants, traders, slaves, and pilgrams, carried their accomplishments internationally. China’s unique way of manufacturing salt by solar evaporation spread to Christian Europe as well as the Islamic world. Papermaking, which started during the Han Dynasty, spread to Vietnam and Korea by the 4th century, Japan and India in the 7th, etc. Both printing as well as papermaking were both heavily affected

China, the most populous country in the world, has experienced an abnormal growth rate in Gross Domestic Product over the past decades. However, facts and statistics indicate an economic growth slowdown of the Asian giant.

China’s growth rate is plummeting in recent years and is showing signs of falling further in coming years. Governments effort such as monetary stimulus, stock market bubble and bond market bubble has failed to stabilize economy, making only small and temporary effects. Authorities are trying to boost investment demand through monetary policy but industries already are in state of overcapacity; a result of force saving policies; and therefore real effect is showing as weakness in currency exchange. Commodity market is collapsing in greater rate each year and situation seems like Chinese economy might be moving toward depression.

Is China entering a middle income trap? Who knows? But the recent slowdown of the Chinese economy has turned on the warning sign that the country might be falling into one of the greatest challenges of the developing economies: the middle income trap. However, prior to understanding the reasons that the Chinese economy might (or might not) be falling under the trap, it is necessary to do an overview about the drivers that led the incredible growth of the Asian Dragon during the past decades.

Globalisation of has played a significant role in fueling China’s economic success, being integrated with the global economy through international trade and foreign investment has resulted in high GDP growth and improvements in quality of life.

India and China are two of the world’s oldest civilization and they have shared a long history of cultural, scientific and economic linkages. In this day and age considering the recent GDP numbers from China and India: Beijing (Capital of China) says its ‘grew by a respectable 6.7% in the first three months of 2016, while New Delhi (Capital of India)reported a remarkable 7.9% expansion in the same period. Together (India and China) they account for 16% of the world GDP, or about $13trillion. But the World Bank only showed the growth of 2.5% in its latest outlook. (CNN)

China, a socialist country in East Asia, is the world 's most crowded nation. Its unfathomable scene includes field, desert, mountain ranges, lakes, waterways and 14,500km of coastline. Beijing, the capital, blends cutting edge building design with memorable destinations including sprawling Tiananmen Square. Its biggest city, Shanghai, is a high rise studded worldwide budgetary focus. The famous Great Wall of China fortress runs east-west the nation over north. It practices purview more than 22 territories, five self-ruling locales, four direct-controlled regions (Beijing, Tianjin, Shanghai and Chongqing), and two generally self-representing exceptional managerial regions(Hong Kong and Macau); while asserting power over Taiwan. Covering around 9.6 million square kilometers, China is the world 's second-biggest nation via land region and either the third or fourth-biggest by aggregate region, contingent upon the system for measurement.. China 's coastline along the Pacific Ocean is 14,500 kilometers (9,000 mi) long, and is limited by the Bohai, Yellow, East and South China Seas. China had the biggest and most complex economy on the planet for a large portion of the previous two thousand years, amid which it has seen cycles of flourishing and decrease. Since the presentation of financial changes in 1978, China has ended up one of the world 's fastest-developing real economies. Starting 2014, it is the world 's second-biggest economy by ostensible

It is no longer accurate to say, “China is quickly emerging as a global superpower.” The fact is that China is already a global superpower. Realizing this the United States of America has attempted to once again turn its focus eastward. However, continuing problems at home and in the Middle East have made doing so difficult. More and more frequently attempts at influencing the ongoing narrative in the Asia- Pacific region have been rebuffed. Even allies have found strength in the emergence of a system that fails to conform to previously prescribed methods and ideals. This leads to a fundamental question America must answer quickly: Has the growing hypocrisy of idealistic political rhetoric versus actual foreign policy finally undermined American credibility with developing nations, or for the purposes of this paper more specifically China? The answer is yes.

The rapid rise of economies in Asia over the past few decades has been phenomenal. According to (Steven, Jeffrey and Jong-Wha, 1997), Asian countries such as Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, Thailand and Indonesia grew at an average of over 5.5% per year in per capita terms between 1965 and 1990. The mentioned 08 Asian countries are also known as the eight high-performing Asian economies (HPAEs). With exception to some post-war European countries, such growth rates at this magnitude and duration are unprecedented in human history. During the mentioned timeline, 23 economies in East Asia grew faster than those of all other regions (Page, 1994). According to (David, 2014), over the past decade, Asia accounted for

India with about 1.2 million populations and china with about 1.3 billon population are two big demographic and emerging countries in the world .Over a past few decade India’s combination into the economic has been accompanied by remarkable economic growth (World Bank 2011¬).India is having the 3th position on the economy in purchasing power parity (PPP) terms (The Economic Times, 2012). India’s total GDP (gross Domestic Product) growth was 5.5% in 2012 and inflation rate is was .........(The Economist, 2012) .According to government of India poverty has been decline from 37.2% in 2004 to 29.8% in 2010 (world bank 2011).The major economic growth sectors

This essay is an analysis and comparison of the trade patterns of China and India since 2000 and studies the effect of the regulating economic and national policies on the trade performance.

The world today (or at least most of the “developing” part) is being lead by chief institutions like the World Bank, International Monetary Fund and the United Nations and its subsidiaries, with the one central point of discussion – economic growth and development of the “poor” countries. The past few decades have witnessed major ups and downs in the economies. While some countries have experienced shrinking incomes (Zambian per capita income figures in early 1990’s as compared to 1960s (Easterly, 2002, p.42)), some have experienced a substantial increase (East Asian NICs, India, China, etc). The debates on why some countries are poor while some are significantly more prosperous and why some countries grow faster than the others have long puzzled economists while the answer to it is still quite inconclusive. Evsey Domar in his 1946 paper himself referred to ‘the rate of growth’ as ‘a concept which has been little used in economic theory’. However, much effort has been made since then to explain the process of economic growth and the determinants for it, based on which many growth theories have emerged in which Domar himself had a major role to play. While many growth theories that have been developed since, this essay will focus on a few of the classical models, the Swan-Solow neoclassical model and the “new” growth theories, discussing their relevance with present developing economies.

SMEs (Small and Medium enterprises) are one of the key drivers of India’s economic growth. Over the years a large number of small and medium size companies have grown in the market. Small and Medium Enterprises (SMEs) have been contributing so much towards the GDP of India. With their emergence and huge potential, the government of India launched regulated trading platforms for the SMEs, which allows them to get listed without bringing an IPO. The stock exchanges for these enterprises were introduced so that these firms can do better in financing activities for themselves. Of course, there is an option of adding debt, which also helps improve the overall return on equity, but the cost of raising debt for SMEs is relatively higher. High interest expense does not look very good on the profit and loss statement of a growing company. Thus, in order to fund the next stage of growth without excessive interest cost burden, companies look to access equity funds via capital markets. This is where listing on an exchange comes into the picture. The research would include the implications of the introduction of the BSE and NSE SME stock exchanges how well they are performing. Also, what is the response from the SME sector.