Project on India Vs China

[neerajbelani]

EXECUTIVE SUMMARY



China and India are, today, the engines of growth in the midst of rapid economic transformation and make for a positive impact on the global economy. In fact, according to a report by the World Bank, five countries – the US, China, Japan Germany and India – account for nearly half of the world's gross domestic product (GDP).

Both India and China have also been major contributors to the global centre of economic gravity moving towards Asia, and are expected to play a significant role in making the 21st century largely about Asia. Naturally, when countries the size of China and India – together accounting for 2.5 billion people – begin to unshackle their creative energies, the impact is bound to be realised worldwide.

With the world turning into a global village and competition getting stiff, countries like China are ruling the roost in many a market in varied spheres. India is the hub of diverse business opportunities, and slowly yet steadily, Chinese products like electronics, crackers, idols, apparels, etc. are predominating similar Indian products.

Chinese electronic goods like radio, torch, DVD players, etc. are reigning supreme in the Indian market. Decorative items, fashion accessories like slippers, jewelries, hand bags, etc. receive huge responses during festive seasons. This year, one saw the flooding of the Indian markets with Chinese made idols which were welcomed with open arms by the Indian consumers.






INTRODUCTION

The gross domestic product (GDP) or gross domestic income (GDI) is one of the measure of national income and output for a given country's economy. GDP is defined as the total market value of all final goods and services produced within the country in a given period of time (usually a calendar year). It is also considered the sum of value added at every stage of production (the intermediate stages) of all final goods and services produced within a country in a given period of time, and it is given a money value.

Gross means depreciation of capital stock is not subtracted. If net investment is substituted for gross investment, then the formula for net domestic product is obtained. Consumption and investment in this equation are expenditure on final goods and services. The exports-minus-imports is denoted by X-M in the formula given below :

GDP = C + I + G + (X-M)


INDIA VS CHINA ECONOMY

China and India are both developing quickly but with vastly different approaches. China's growth has been driven by manufacturing, and the country's planned economy has tapped into domestic savings and foreign investment to build an impressive infrastructure. India, by contrast, owes much of its progress to private businesses. Without much assistance from the government, they serve companies in the best's knowledge-based industries, such as software, IT services, and pharmaceuticals. The difference between the two models prompts debate about whether one country has a better approach to economic development than the other and which will eventually emerge as the stronger.








Comparing the Economies of India and China is to embark on an old puzzle that has fascinated smart people for centuries. Although it is urgent and important to discuss it because China and India are the world's next major powers. It is also important because the two countries have embraced very different models of development.

Looking at the Similarities between the Economies of India and China, both are conscious of their role in the world economy. Both seek to play a bigger political role on the world stage. China is already doing that as a permanent member of the U.N. Security Council. Now observing the Differences between the Economies of India and China we see that China is taking tangible but slow steps towards embracing private entrepreneurship. India on the other hand is continuing to struggle with making things easier for multinationals.

China's per capita GDP growth has averaged 8 per cent in the 25 years since 1980, more than double the growth rate of Indian per capita GDP. Somewhere between 1975 and 1985 China's average income is believed to have surpassed India's. Since then it has kept moving ahead. By 2003 China's per capita GNP was at least 70 per cent higher than that of India's and her economy was more than twice as large as India's. Much of China's growth was powered by labor-intensive manufactured exports, which took the share of manufacturing in GDP to nearly 40 per cent, compared to a mere 16 per cent in India.

















FACTORS THAT EFFECT GDP GROWTH

There are various factors which affect the GDP growth. If we take the example of China, then the main factors are cheap labor, large population, strong manufacturing base etc.
China has created many flexible investment zones, export processing zones, free trade zones, high tech zones, complete with tax incentives and good infrastructure. India has tried to replicate this with its creation of export processing zones and software technology parks. But the difference lies in some key areas like creation of infrastructure and quick approval of investment proposals.
China has become the world's manufacturing hub. The giant store chains like Wal-Mart are testimony to the fact that most of the low-cost products today are made in China because it offers the cheapest source of manufacturing. In electronics and hardware, China is the manufacturing hub for companies like Siemens and Hitachi Global Systems.
China has a huge population, and it basically considers its population as the asset. China believes in optimum utilization of the resources and also has the ability to respond quickly. The main intension of China is to increase trade with India. China has also always bought new technology into the market which generally attracted the consumers.





COMPARITIVE STUDY BETWEEN
INDIA & CHINA

Various significant studies have been conducted over the years to understand the
differences and similarities of economic performance and development strategies in China and India. We can easily compare and see the difference between India and china with the help of the comparison table given below :
















The above chart shows the historical growth rate of India and China. We can hereby notice that the growth rate of China is more, as compared to India. This is the case till 2006.



SUMMARY







As every individual likes to grow, similarly every country likes to grow. China and India have become the powerhouses of the current global economy. Their remarkable economic performance has led the world to not only look closely at their overall economic development strategy, but also to try to understand how their success could help enhance economic opportunities for the rest of the world. It is therefore of great interest for academicians and policymakers to learn from these countries. They are still the developing countries and stepping towards becoming one of the developed countries.





THANK YOU

[ami_goel]

Originally Posted by rahul_parab2006

PROJECT ON ............."INDIA V/S CHINA"

Category - Genral Management



Very good project for reference.........

very good comparison of india and china......

[supriyatushar]

hey someone plz let mekno how to upload a project

[supriyatushar]

th eprojects are really great and helpful

[natashakhanna]

thanks a lot buddy.......................

[tanmai11]

thanx to all for sharing their info on china a competitor of India

[mbmmanish]

how to get it

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[dimple23]

the project looks really helpful! nice work

[rouger]

greta job dude.........

Thanks for the project and it is very helpful and clear comparion is given b/w the 2 countries of economic power and relationship will show the difference.

[sircar_avishek]

thank you very much.........................................