2. INTRODUCTION
CHINA
Socialist economy
World 2nd largest
economy and by PPP
after the U.S.
Largest exporter and 2nd
largest importer.
INDIA
Mixed economy
9th largest economy in
world and third largest by
PPP.
19th largest exporter and
10th largest importer
3. RATES OF GDP GROWTH
CHINA
The Chinese economy
has grown at an
average annual rate of
9.8% for two and a
half decades, showing
volatility around high
trend.
INDIA
India’s economy has
grown at around 5-6
per cent per year over
the same
period, breaking from
“Hindu” rate of 3 per
cent. But very recently
the average growth rate
for the last four years is
just above 8%
5. GROSS DOMESTIC
PRODUCT
Growth in china is faster than
India because of larger FDI.
SEZ policies provides
comprehensive infrastructural
facilities to attract FDI
Improper distribution of wealth in
India
6. TRADE
PATTERNS
Rapid export growth includes
more world market shares
which is attracted by cheap
labor and subsidized
infrastructure.
Except export of
services, export growth is
lower in India due to poor
7. RATES OF INVESTMENT
The investment rate in China (investment as
a share of GDP) has fluctuated between
35 – 44% over the past 25 years, compared
to 20 - 26% in India.
Infrastructure investment from the early
1990s has averaged 19% of GDP in
China, compared to 2% in India.
9. POVERTY REDUCTION
CHINA
Officially 4 per cent of the
population now lives
under the poverty
line, unofficially around
12 per cent.
FROM 1981 TO 2005
Poverty rate –
Dropped by 84% to 16%
INDIA
Official poverty ratio
much higher and
persistent, currently 28
per cent.
Food deprivation is
much higher.
FROM 1981 TO 2005
Poverty Rate –
Dropped by 60% to 42%
10. Human Development Index
Life expectancy- higher the better;
Adult literacy rate- higher the better;
Percentage of population below poverty line- lower the better;
Infant mortality rate- lower the better;
Maternal mortality rate- lower the better;
Percentage of population having access to improved water sources-
higher the better;
Percentage of population which is undernourished- lower the better;
Percentage of population having access to improved sanitation- higher
the better.
Based on all these parameters a composite index is constructed
known as the HUMAN DEVELOPMENT INDEX (HDI). Higher value of
HDI points to higher level of growth and development of a country.
Making a comparison of India and China, China is far ahead of India in
all the above mentioned spheres.
11. HUMAN DEVELOPMENT INDEX
CHINA
RANK 101/187
Earlier extensive public
provision of health and
education.
Education until Class
X, and public services to
ensure nutrition, health
and sanitation.
INDIA
RANK 136/187
The public provision of
all of these has been
extremely inadequate
throughout this period
and has deteriorated in
Per Capita terms since
the early 1990s.
14. We can conclude that:
CHINA is well ahead of INDIA in most of the
departments.
INDIA is ahead of CHINA in Banking and
Legal sector.
CHINA is well ahead in Infrastructure.
INDIA also exceeds CHINA in its BPO / IT
sector.
Rest among all the sectors it is China which is
ahead whether it is Agriculture, Trade
Patterns, Employment Growth, Human
Development