INDIA:
1. More Balanced Growth—India is a domestic consumption driven economy which is very less susceptible to shocks from international economy. Domestic consumption in India is 57% of the GDP.
2. More Rational Companies—India’s companies are more focused on profitability. There are more than 6000 companies listed on the stock exchange and only 100 of them are state owned. India’s return of investment on various companies is almost double as compared to China.
3. Democracy- India has proved the world that dictators are not needed for rapid development and the same can be achieved by democracy. It has shown incredible economic growth for decades.
4. Property Rights—In India, article 31A protects the right to property as a fundamental right. The government is working day and night for the improvement of land and labour laws.
5. Rule of law—India’s legal system has been in place for more than 100 years. The legal system is internationally respected. There are more than 150 top global multinational companies have established R&D base in India. According to US Food and Drug administration, India has more certified companies in the world after US.
6. Banking Sector—India’s banking sector has always had a sustainable growth. Various policies like credit giving, interest rates, etc have always been regulated in accordance with the welfare of the economy. This sector did not face any crisis during the 2007-08 financial crisis which had gobbled up the US financial sector.
7. Inclusive Growth—Owing to democracy and historical traditions, India’s growth has always been in consideration with the people. The overall growth of the country is at an average rate but inclusive.
Winston Churchill said, “Democracy is the worst form of government except for all those other forms that have been tried from time to time"
CHINA:
The rest of the world looked on in disbelief, and then awe, as the Chinese economy began to take off in the 1980’s at what seemed like lightning speed and the country positioned itself as a global economic power. China, a socialist market economy, is the world’s second largest economy with the GDP of $8.6 trillion. It is the world’s fastest growing economy with growth rates averaging 10% over past 30 years.
China is the largest exporter and the second largest importer in the world. It is also the second largest manufacturing economy in the world outpacing its world rival in this category, USA.China has implemented reforms in a gradual fashion. It has achieved what it has because of structural strength of its institutions. It is following a developmental path.
For nearly 30 years China has indeed been growing thrusting citizens into prosperity and its goods across the world. Between 1978 and 2013, China’s per capita income had grown from $153 to $9100. Its current account surplus had also increased over twelve fold between 1982 and 2004, from $5.7 billion to $71 billion.
It transitioned from being an agrarian economy to a manufacturing one, and is now concentrating on the development of service sector. China in year 2003 fed 20% world’s population with only 7% of world’s arable land. In 2011, china was largest producer of steel in the world producing 45% of the world’s steel. Even in current slowdown the Chinese economy is being able to manage a decent growth rate. It is also predicted that by 2016, China became the largest economy of the world overtaking USA.
Even though India and China occupy the same continent, they do not inhibit the same strategic realities. Geography, governance, culture, economy and diplomacy all play a huge role in making a big difference in strategic outcomes of the two countries. China’s geopolitical advantage can be summed up like this: (i) first mover advantage- China borders 14 nations more than any country in the entire world. (ii) It has settled borders with all of its neighbours. (iii) China has also built up very deep infrastructural linkages, commercial ties with its neighbours exporting goods while importing raw materials. So, in a way it has built a trans-national empire of resources already.
China is two decades ahead of India in terms of its economic size, infrastructural base and social indicators ,which probably indicates that Dragon has already reached the 21st century whereas the Elephant is still lurching towards it.
The race between India and China is an amazing race
between China’s hare and India’s tortoise.
Clearly
India has many advantages—1. More Balanced Growth—India is a domestic consumption driven economy which is very less susceptible to shocks from international economy. Domestic consumption in India is 57% of the GDP.
2. More Rational Companies—India’s companies are more focused on profitability. There are more than 6000 companies listed on the stock exchange and only 100 of them are state owned. India’s return of investment on various companies is almost double as compared to China.
3. Democracy- India has proved the world that dictators are not needed for rapid development and the same can be achieved by democracy. It has shown incredible economic growth for decades.
4. Property Rights—In India, article 31A protects the right to property as a fundamental right. The government is working day and night for the improvement of land and labour laws.
5. Rule of law—India’s legal system has been in place for more than 100 years. The legal system is internationally respected. There are more than 150 top global multinational companies have established R&D base in India. According to US Food and Drug administration, India has more certified companies in the world after US.
6. Banking Sector—India’s banking sector has always had a sustainable growth. Various policies like credit giving, interest rates, etc have always been regulated in accordance with the welfare of the economy. This sector did not face any crisis during the 2007-08 financial crisis which had gobbled up the US financial sector.
7. Inclusive Growth—Owing to democracy and historical traditions, India’s growth has always been in consideration with the people. The overall growth of the country is at an average rate but inclusive.
Winston Churchill said, “Democracy is the worst form of government except for all those other forms that have been tried from time to time"
CHINA:
The rest of the world looked on in disbelief, and then awe, as the Chinese economy began to take off in the 1980’s at what seemed like lightning speed and the country positioned itself as a global economic power. China, a socialist market economy, is the world’s second largest economy with the GDP of $8.6 trillion. It is the world’s fastest growing economy with growth rates averaging 10% over past 30 years.
China is the largest exporter and the second largest importer in the world. It is also the second largest manufacturing economy in the world outpacing its world rival in this category, USA.China has implemented reforms in a gradual fashion. It has achieved what it has because of structural strength of its institutions. It is following a developmental path.
For nearly 30 years China has indeed been growing thrusting citizens into prosperity and its goods across the world. Between 1978 and 2013, China’s per capita income had grown from $153 to $9100. Its current account surplus had also increased over twelve fold between 1982 and 2004, from $5.7 billion to $71 billion.
It transitioned from being an agrarian economy to a manufacturing one, and is now concentrating on the development of service sector. China in year 2003 fed 20% world’s population with only 7% of world’s arable land. In 2011, china was largest producer of steel in the world producing 45% of the world’s steel. Even in current slowdown the Chinese economy is being able to manage a decent growth rate. It is also predicted that by 2016, China became the largest economy of the world overtaking USA.
Even though India and China occupy the same continent, they do not inhibit the same strategic realities. Geography, governance, culture, economy and diplomacy all play a huge role in making a big difference in strategic outcomes of the two countries. China’s geopolitical advantage can be summed up like this: (i) first mover advantage- China borders 14 nations more than any country in the entire world. (ii) It has settled borders with all of its neighbours. (iii) China has also built up very deep infrastructural linkages, commercial ties with its neighbours exporting goods while importing raw materials. So, in a way it has built a trans-national empire of resources already.
China is two decades ahead of India in terms of its economic size, infrastructural base and social indicators ,which probably indicates that Dragon has already reached the 21st century whereas the Elephant is still lurching towards it.
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