Economic Comparison of India and China Essay examples

In Classical India and Classical China, the development of institutions and traditions were very different yet very similar in many ways. For instance, India and China both put women below men and considered merchants as a middle class. However, they differed in areas such as centralized government. Outside of the Mauryas and the Guptas, India was run by the religion-based caste system while China had a very centralized government, except for the Warring States period and the Three Kingdoms period. If you look closely, Classical China and Classical India are like opposites drawn in the same colours. They both socially stratified their people in ways dictated by their beliefs but while India made it impossible to move any way but down, China allowed movement in any direction through the pyramid of society if you could earn it. Furthermore, while China worshipped their ancestors and looked to learn from the past, India believed in reincarnation and looked to the future.

Briefly compare the political regime type in China and India. Which of the two would you prefer to do business in and why?

When accessing the business potential in India, certain barriers should be examined. The infrastructure is underdeveloped in electrical power, streets and highways and telecommunications (Sridhar, 2014). The Trade Union Act of 1926, The industrial Disputes Act of 1947 and The Contract Labor (Regulation & Abolition) Act, 1970 are three of the labor enactments which hinder capabilities of Indian Organizations. For example, for a company that employs over 100 people, The Industrial Labor Law requires the employer to seek approval from state officials to lay off staff members. Furthermore, the corporate tax rate for foreign corporation’s averages 40%, while for domestic corporation’s averages 35%. Tariff regulations in India are complicated. The attempts to introduce improvement sometimes leads to inconsistent enforcement from members of the tariff authority (Sridhar, 2014).

New parts of the world that were not long ago considered undeveloped, backwater countries, are now taking center stage in the global economy. Much has been publicized about the ascendance of China's economy, as it has become a major venue for the manufacturing of products sought after by worldwide consumers eager for cheaper goods. However, China's Asian neighbor, India, also has a vigorously growing economy. India's economy is partly being fueled by companies around the world seeking to reduce their costs by outsourcing some of their operations there.

There are tons of economically successful counties in the world. However, these days two really stick out in the economic crisis. We are in currently; those are China and India. China and India are almost surpassing the United States faster than we can even try to catch up. They are moving at such an economically booming rate. China and India are moving and surpassing the United States with trade and by getting interest from loans to other countries. China and India are huge economic threats to the United States economy. In this research paper, I will be explaining why China and India are huge economic threats to the United States, why china and India are growing at substantially fast rates,

When people are seeking new opportunities in other countries, China and India is popular choices for investor as the two most populous on the Earth. Both are emerging economies that have illustrated average GDP growth greater than 7 percent over the few years*. Noticeably, both India and China are largest avoided by the global economics crisis in 2010,maintaining above GDP growth when western countries are suffering economics contraction.

India’s economy today is thriving with it being the third largest country in the world in terms of its purchasing power. India is predicted by Goldman Sachs the (Global Investment Bank) in the year 2035 to be one of the largest economies in the world just under the US and China. India still has a few hurdles to climb because of its divided economy caused by a population explosion, poverty, unemployment and rural urban divide (http://www.mapsofindia.com/india-economy.html).

For the last two decades, both India and China have grown at twice the global rate and If this trend continues for next few decades, with their vast labor supply, favorable demographics, and aspirations for reaching the developed world per

Felipe et al (2013) estimated that it was unlikely for China to continue registering high growth rate any longer since its past thirty years’ development has created wonders but also inefficiencies and imbalances. We have witnessed China’s inevitable deceleration in recent years with annual GDP growth rate declining for five years in a row, which fell to 7.35% in 2014. According to several growth projections, China’s average annual growth rate

India’s Real GDP is 7.4%, considerably higher than the rest of the world (2.8% and 2.9%). This comparison of growth depicts India’s accelerated economic growth rate and economic development.

Economically India ranks 10th place just behind Italy and Russia in terms of nominal GDP. In 2014 India’s GDP is expected to rise up to $2.05 trillion with a growth rate of 5.6%. This growth underlines a steady phase of economic growth for over 30 years of rates between 2% and 10%. Meanwhile Inflation in India has also been steadily rising an average of 10% p.a . The predominant sectors that contribute to

India has an amazing rate of growth which has reached to 9% in 2007. The average rate of growth is 7% since 1994. This is an important evidence of the stable development of Indian economy. Also unlike to other developing countries India managed to have a very low rate of inflation which has remained close to 4% since 2000 and has not fluctuated much then. India seems to be one of the safest economic environments for investment when compared to other Asian countries. Moreover India’s imports almost tripled between 2001 and 2005 from $50.1 billion to $138.4 billion, while exports more than doubled, from $43.3 billion to $99.7 billion. Another import point that should be noted

1. Rustic Versus Urban Divide: While the chance to enter the business sector is extremely ready, India still spends just around 4.2% of its national GDP towards social insurance products and administrations (contrasted with 18% by the US) [2]. Furthermore, there are wide crevices

The Make In India campaign is an initiative by Narendra Modi, which was introduced on 2nd October 2014. It is advertised by launching a website and a logo of its own. The campaign lays a foundation for a pro-manufacturing initiative by the new government. With this plan, PM Modi intends to encourage Inclusive Growth in the country. The Inclusive Growth can be attained by exploiting the 3 D’s of the country i.e Democracy, Demand and Demographic Dividend. Also Modi’s pitch for FDI (First Develop India) would also revive the Indian Economy. Although the initiative of Make in India looks ambitious, but does it really reap fruits and overcome the shortcomings of Indian Economy from its 67 year old history is something to be debated upon.

After getting independence in 1947, the government of India envisioned a socialist approach based on the USSR system to developing the country’s economy. The last decade of the 20th century witnessed a drastic increase in foreign direct investment (FDI), accompanied by a marked change in the attitude of most developing countries towards inward investment. FDI flows have grown in importance relative to other forms of international capital flows, and the resulting production has increased as a share of world output.. FDI in India has in a lot of ways enabled India to achieve a certain degree of financial stability, growth and development during recession. This money has allowed India to focus on the areas that may have needed economic attention and address various problems that continue to challenge the country. The factors that attracted investment in India are stable economic policies, availability of cheap and quality human resources, and opportunities of new unexplored markets. Mostly FDI are flowing in service sector and manufacturing sector recorded very low investments. The investments in service sector enhanced the benefit of flow of funds to the home country. Presently India is contributing about 17% of