Ten years ago it was unthinkable in India than China. Major player in the new global realities of the new heralds of China and India. Global political architecture of the two countries changed rapidly from west to transfer power to the east. Question here and for China to beat India’s economic growth potential nature.
It is a question that poor countries to democracy and as a source of enrichment of autocratic government the right to compete with the Chinese political model may exceed the rule of law can a political model based on Indian pose.
India’s economic dynamism with great achievements and failures are a set of contradictions. In India, especially in recent years, but the promised economic reforms are sufficient. India can claim that no other country in the world that is so productive that is a weakness rather than strength of India is actually a pluralistic system, it does not explain the slow development has been.
Scene two years ago in India than China, a more competitive economy can be met with disbelief. The two countries on the day that the global economy provides valuable information for us. A fundamental difference is that China’s growth comes from the accumulation of resources, while India’s efficiency lies in the increase.
The rise of China’s major investment in infrastructure, economic liberalization and institutional reforms deserve much credit is due. China pursues this goal by giving priority to education low. education system of India, on the other side, especially in rural areas has improved continuously.
Corruption in China, fragile financial system, unemployment, energy security, environmental degradation, many challenges face the possibility of foreign direct investment to decline enough to make work already caused the failure of the storm, its aging society, 2020, the beginning and it is very unlikely that China’s pension and health care system and be able to place anyway, if the economy takes a downward trend of political instability , HIV / AIDS and the devastating effect of the most important thing is Taiwan conflict. emergence of China can be serious if it can stand facing a crisis of confidence.
China’s ambitious economic superpower has defects, including corruption and waste. India, however, many hidden, long-term benefit is. Although the literacy rate in India is more than China, its technical and management institutes in China so far from these schools are better than less. It is estimated that only 10 percent of Chinese engineers working in the skills required for a global company, while the comparable number for India is 25 percent.
In addition, huge flows of foreign investment in China are a double edged sword. He became a substitute for domestic entrepreneurship. Chinese goods made by some domestic companies are indeed. And some regulatory barriers that exist are besieged and have difficulty in mobilizing domestic capital. China’s public sector is bloated and heavy, but China is weak banking system NPLs has a frightening number.
China’s boom in export-oriented manufacturing largely foreign direct investment (FDI), which effectively act as a substitute for domestic entrepreneurship is a creation. Over the past 20 years, the Chinese economy took off, only a few local companies to large multinational companies globally that rivals have been developed.
On the other hand, India has a number of companies is now better than Europe and the United States has to offer international competition with eggs has been successful.
India face the challenges that China faces even greater challenges imaginable. Corruption is a major problem. However, the participation of India in the well through the process so that China can not deal with these issues is displayed. Although the democratic system of India can be complicated and slow, it is stable, less risky than opaque, authoritarian environment that makes investments.
India’s banking and financial institutions are well established and long-term market analysis, which explains their more efficient use of capital has been lent by.
Another advantage is that Indians in India, the common language is English, which makes it easy to install in the country creates an international trading system.
China because of its one-child policy has reduced the number of employees face. China’s active population of one billion by 2025 maximum, then decreases rapidly and provides retirement benefits are a big problem. 220000000 on China – on the other hand, the population of India will be 1600000000. Indians with half its population under 25 years means that the country eldercare health and future costs pension will be paid to this problem.
India has always been an average of 6 since the country embraced the market economy per cent. Increased over the last two years, with 8 per cent has been eventful. While India has an economy that grows at ground level, the person is above the roots of the Chinese economy, but the government is not fixed. China’s economy, but demand is not based on performance and guidance of strict government set by the manufacturers. Foreign investors have the opportunity to run when internal political turmoil and can erase the benefits of a blow to China have seen. On the other hand the long-term development of India provides that gives even the short term can not be heavy.
India 1.4 billion population is only 200 million short of China, however, India’s middle-aged over 24 years until China is in the thirties.
In the last decade, India has emerged in their growth rate after China. It is powered by the engine, and the world that the credibility of India has increased, and 21 th century became an economic power on the export of its labor force, and he showed everyone Officials Should I dare you.
With huge investment and strong domestic demand in China, where flow is a paradox insofar as China is concerned. The higher you go, the more you fall. In China, makers of well understood as they take deliberate steps to increase the economic crisis seems to have taken.
China better than India for future growth are maintained. Its capital markets operate more efficiently. They are also more transparent. Companies can get the money they need. India’s legal system, while much slower, more sophisticated technology and is able to resolve complex cases. The banking system has relatively few non-performing assets.
India’s democracy is alive and the news media is important to change the absurd, a safety valve which provides modern economic growth brings. India religious riots, secessionist movements, urban grime and bitter rural poverty. But voters know they can throw the rascals, and they regularly do.
For decades, investment funds of China and its Diaspora capacity and economic energy of Hong Kong and Taiwan have benefited. After years of ignoring its Diaspora, India is now welcoming them back – and they are more “intellectual capital” to offer than China. Flow of remittances from expatriate Indians in 2005 of $ 21 billion, more and more Chinese migrants have been sent.
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