GDP Comparison of India and China

China, the largest growing market in the world, currently has a policy regarding monetary regulation that allows the Yuan to “float”. This has seen the Yuan appreciate by approximately 24% over the past few years. Today, the exchange rate between the Chinese Yuan and the American Dollar is approximately 6.3 Yuan to 1 Dollar. Some argue that China should revalue the Yuan again the dollar, establishing a more fixed exchange rate. Others believe that current should allow

Firstly, the need for continued unilateral trade and investment liberalization with emphasis on regulatory reforms, much of inward FDI in India’s manufacturing sectors has been viewed as more of “market-seeking” rather than “efficiency-seeking” FDI that will help to link India with Asian IPNs. While the Indian economy becomes outward-oriented, the perception among trading partners of India as a preferred trade and investment partner needs to improve. It needs to deal with behind-the border restrictions on international trade and investment. Secondly, reducing transaction costs, and improving physical and institutional infrastructure for cross-border trade and investment. The high trade cost is due to export related documentation and high logistics cost from low quality infrastructures involving inefficient ports, complicated bureaucratic procedures and electricity outage. This creates unfavorable business environment. Upgrading of transportation infrastructure (road, railway, etc.) and communications technology services are needed to allow efficiency and reduction in cost. Third, addressing labor market rigidities, since manufacturing sector can provide large-scale employment, and be a key driver for structural change as India grows, it would help India integrate into Asian IPNs because it promotes growth through forward and backward linkages with other sectors, particularly the services sector which has contributed greatly to country’s growth. However, when there are rigidities, India is not able to shift its employment structure towards manufacturing even with its many low-cost skilled labors. Hence, it fails to make use of its human resources efficiently to compete in the international markets. Other than that, labor market rigidities cause “jobless growth” in organized manufacturing and thus the increasing use of contract and temporary workers. Therefore, there is a need for labor reform at national and state

The early civilizations of China and India emerged prior to 600 CE in what is known today as the continent of Asia. With the Himalayan mountains in between them, these civilizations developed in isolation from one another, and yet still managed to produce kingdoms with continuous growing populations to this day. Individual growth and development amongst the people stimulated technological inventions, increased the chances of survival and lead to: greater agricultural production, strong armies, and expansion. Eventually, these commodities and other luxury items produced will be traded, spurring the economic growth of both civilizations. Overall, these early stages of development not only furthered contact amongst these two great empires allowing for cultural diffusion, but also set the foundation for future generations to follow. Although China and India’s growing empires took place in different parts of the world, the structure of their economies developed similarly, beginning with an agricultural infrastructure and progressing towards trade within and beyond the kingdoms, while also acquiring distinctive cultural differences overtime such as a social hierarchy defined by certain beliefs. These characteristics will define the beginning and the advancement of early economic systems used during the Foundations Era and Classical Age, and provides insight on the essentials that influenced the two economic

The purpose of this essay is to compare and contrast the government and economies of four countries in Asia: China, India, Japan, and Korea. Topics that will be discussed are their governments, economies, resources, and citizens.

China and India are the two countries which have the largest population in the world. These two countries have many similarities, especially they have fabulous growing speed during the globalization. In the global economic market, China has the biggest manufacture market and cheap labor (Justin Paul & Erick Mas.2016). India gained independence from the United Kingdom from 1947 and started to focus on improving their food security and developing the technology of agriculture, so India has the evidence dominate the service market from agriculture transfer to service sector due to the globalization too in recently decades (Kedia &Lahiri 2007). In the same situation of China, the whole society focused on agricultural reforms since the 1970s.

Despite this India is still a complicated place for foreign investors. A weak parliamentary government has very little purview over the provincial and local ministers who were elected entirely separate from federal elections. The fragmented nature of the country’s political system has and will continue to prevent major

The two countries that we are going to compare are India and China. The greatest contrast among Indian China is the level of development in both nations. Advancement can be seeing more in India than in China and the struck me the most. There could be many variables causing this distinction. To begin with, let 's examine the differences in the government of meat country. Since the meaning of time, the Chinese government is continuing to do things their way heavily influencing what happens in the country. They have inumerous laws that directly or indirectly cause a standstill with innovation. The majority of the things our state possessed in China bus to begin something intends to first get every one of the clearances from the government, which is extremely troublesome. Conversely, Indian government advances development by

There would be many possible implications on the Chinese economy if they expanded their infrastructure investment. Expanding infrastructure investment may increase Chi-na's attractiveness as a destination for FDI. Other countries such as India have to com-pete for the same investment; China and India have similar comparative advantage’s i.e. low labour costs however an investment on infrastructure could put China at an advantage as firms would rather allocate in a destination with a better infrastructure. If firms decide

Foreign Direct Investment (FDI) is one of the biggest tools for international economic integrations. Firms view overseas expansion as a necessary step to achieve a more effective access in the markets where they presently have low representation as stated by Tyu T. and Zhang M. M. (2007). In order to take advantage of the aggregate economies offered by the blooming innovative environment in that particular region, firms of course will invest heavily in an advantaged location to compete with other countries. According to Changwatchai P. (2010), FDI has become more important for the economic growth and development of many countries. FDI can deliver capital, a means to pursue global strategic objectives, and a means to access technology and skills to the host country. Attracting FDI is an important issue of concern to many developing nations.

Since July 21, 2005, China has adopted a managed floating rate regime based on market supply and demand with reference to a basket of undisclosed currency. The daily trading price of the U.S. dollar against RMB in the foreign exchange market will be allowed to float within a band of +/->0.3% around the central parity published by People’s Bank of China. The signal was initially interpreted by the international market as an indication that China would embark on a gradual shift toward increased flexibility which eventually adopt a floating exchange rate regime where the RMB will appreciate much against US dollar. However, they soon

From April to June 2005, India’s GDP grew at 8.1 per cent, compared with 7.6 per cent in the same period the year before. More impressively, India is achieving this result with just half of China’s level of domestic investment in new factories and equipment, and only 10 per cent of China’s foreign direct investment…

This internationally competitive industry and sustainable growing economy of India shows the bright future of FDI in India. India is estimated to require around US $ 1 trillion during the 12th Five-Year Plan period (2012–17), to fund infrastructure in sectors such as roads, airports and ports. The government is in the process of liberalizing FDI norms in construction activities and railways, which could attract more investments to meet the target.

In the 11 years, the international economic situation has undergone great changes; pegging the RMB exchange rate formation mechanism type has become increasingly unsuited to China 's economic reform and development requirements. It is demonstrated by the defects are:

In 1994 the Chinese government made the decision to peg the RMB to the US dollar at a rate of US$1 to RMB8.7, a year later the Renminbi appreciated 5% and was revalued to RMB8.28. This rate would remain unchanged for the next 10 years, even though the Chinese faced heavy scrutiny and pressure to revalue their currency. The Chinese exercised many policies in maintaining their exchange rate. The PBoC controlled the amount of foreign currency by forcing all exporters to immediately sell their foreign currency to designated banks. The RMB could only be traded on the China Foreign Exchange Rate

India remains the third most attractive destination for FDI, after China and the United States of America, for 2013-2015, according to a survey of global companies conducted by UNCTAD. Foreign Direct Investment in India has increased from $ 1,04,411 in year 2000-2001 to $ 6,96,011 in 2011- 2012. The distribution of FDI inflow is concentrated to some sectors. Services , Construction, Communication, Drugs and Pharmaceuticals, Chemicals, Automobile Industry etc. are among the leading sectors which bag major share of FDI inflows. (Figure 2.1)