Is China threat to india?


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Is China threat to india?

  1. 1. IS CHINA A THREAT TO INDIA<br />Presented by:<br />Abdul Hameed 01<br />Honey Balani 03<br />Manish Kamble 16 <br />RahulPillai 38<br />DhirajVinaykia 59<br />
  2. 2. ECONOMY OF INDIA<br /><ul><li>Market based system
  3. 3. Foreign trade and foreign investment as integral part if Indian economy
  4. 4. Fastest growing economy
  5. 5. World’s second largest labor force</li></li></ul><li>ECONOMY OF CHINA<br /><ul><li>Centrally planned Economy
  6. 6. Private businesses and capitalism were suppressed
  7. 7. Privatization of Farmland
  8. 8. Promotion of foreign investment
  9. 9. Flourishing small scale entrepreneurs</li></li></ul><li>50 yrs ago, India and China were among the poorest and economically most isolated countries in the world. <br />How did China and India emerge as economic giants?<br />
  10. 10. What are India & China famous for today? <br />Low-priced consumer goods<br />Call centers & computer engineers<br />
  11. 11. China – Economic Fact Sheet<br />
  12. 12. India – Economic Fact Sheet<br />GDP- real growth rate: <br />6.6% (2008) <br />9% (2007) <br />9.6% (2006)<br />GDP – per capita (PPP – Purchasing power parity)<br />$2,800 (2008) <br />$2,700 (2007)<br />$2,500 (2006)<br />note: data are in 2008 US dollars<br />GDP – Composition by sector:<br />agriculture: 17.2%<br />industry: 29.1%<br />services: 53.7% (2008)<br />
  13. 13. Comparing India and China’s Growth Stories<br />
  14. 14. Comparing India and China’s Growth Stories<br />
  15. 15. Agriculture<br /> Sector<br />
  16. 16. Indian Agriculture<br />India is an agricultural country.<br />Growth of service sector is pushing down the contribution of agriculture.<br />Contributing 17.2% of the GDP.<br /> Largely depends on monsoon.<br />Provides employment to two-thirds of the total population.<br />15% of export earnings<br />Rural women play a vital role, 50% of rural labor force. <br />Yields per hectare of crops in India are very low <br />
  17. 17.
  18. 18. China<br />Agriculture accounted for 10.6 % of the GDP<br />33o million- over 45% of labor force still makes living from farming.<br />Farming methods have been improved in China.<br />China produces wheat, rice, potatoes, peanuts, millet, cotton.<br />Only 15 percent of the total land available in China can be cultivated.<br />more than 75 percent of the total cultivated land is used for producing food crops.<br />
  19. 19. Increases in Output of Major Agricultural Products<br />(10,000 tons)<br />
  20. 20. Increases in Output of Major Agricultural Products<br />(10,000 tons)<br />
  21. 21. INDUSTRIAL SECTOR<br />
  22. 22. India’s Manufacturing Sector<br />Manufacturing contributes around 15% of GDP of the country.<br />According to CSO data quartely estimate of GDP for manufacturing stood at 38.1 billion US $.<br />According to the data the cumulative growth in manufacturing index for April-June has been 3.2%.<br />In the manufacturing sector the value of new project announced in 2nd half of 2008-09 stood at 13.2 billion US $.<br />
  23. 23. India’s Manufacturing Sector<br />India rank’s among top 12 producers of manufacturing value added products.<br />In Textile it ranks 4th after China, US & Italy.<br />In Electrical machinery & apparatus India ranks 5th. <br />India holds 6th position in basic metals category.<br />7th in Chemicals & chemicals products, 10th in leather & leather products, 12th in machinery & equipment & motor vehicals.<br />
  24. 24. India’s Manufacturing Sector<br />According to CSO the industrial output clocked an annual growth rate of 6.8% in July 2009.<br />There are many Companies who wants to make India as their manufacturing hub, they are<br /> LG wants to make India its global manufacturing hub for its mobile handsets.<br /> Hyundai has make India the manufacturing & exporting hub for its small cars. Their i10 is being manufactured only in India & exported to the world.<br />
  25. 25. India’s Manufacturing Sector<br />Luxury brands like Louis Vuitton are looking at India as a manufacturing base for their products.<br />Skoda Auto plans to make India its regional manufacturing hub. Aircraft manufacturing Airbus is considering India as one of the centres for design & development of its long haul A350 plane.<br />Samsung plans to invest 100 million US $ in its manufacturing plant near Chennai & make it its global hub.<br />
  26. 26. India’s Manufacturing Sector<br />Suzuki too is making India its manufacturing hub for its small cars.<br />According to Investment Commission of India the manufacturing sector is estimated to have 180 billion US $ investment opportunity over next 5 years.<br />Manufacturing sector is the largest employer which employes 25.5 million people of the total workforce.<br />Employment growth rate is 2.78%<br />
  27. 27. China’s Manufacturing Sector<br />Chinese manufacturing sector accounts for 43% of Chinese economy.<br />Its economy growth in average of almost 8% every year.<br />Chinese manufacturing sector ranks 4th in the world after US, Japan, & Germany.<br />
  28. 28. China’s Manufacturing Sector<br />China’s fast growing domestic market worldwide demand for Chinese goods & the cost advantage China offers to manufacturers are fueling the growth of manufacturing sector in China.<br />Purchasing Manager’s Index (PMI) which measures manufacturing activity nationwide.<br />PMI index rose to 54 points in August up from 53.3 in July.<br />
  29. 29. China’s Manufacturing Sector<br />China has 50% share of worldwide camera market.<br /> & 30% of Air conditioners .<br />25% of Washing Machines & 20% of Refrigerators.<br />China’s crude steel production rose by 28.25%.<br />Investment in chemical industry grew by 35.9%.<br />
  30. 30. SERVICE <br />SECTOR<br />
  31. 31. <ul><li>Can be classified into 2 types:
  32. 32. Old
  33. 33. New
  34. 34. Old Services includes:
  35. 35. Petty Trading
  36. 36. Domestic Services
  37. 37. Catering and Hotel Services </li></li></ul><li><ul><li>New Services includes:
  38. 38. Communications
  39. 39. Business and legal practices
  40. 40. Culture, research and education. </li></li></ul><li>INDIA v/s China<br />
  41. 41. GDP shares by sector in China and India<br />
  42. 42. Composition of Service Sector GDP %<br />
  43. 43. Service Sector Share over Total GDP<br />
  44. 44. Economic Structure and Level of Development<br />
  46. 46. History of Exchange rate<br />
  47. 47. FOREX RESERVES<br />The forex reserves of the Republic of China amounted to US$332.24 bnat the end of Sep’09, showing an increase of US$6.82 bnfrom the previous month. <br />The main factors responsible for the increase are: 1. The EUR, JPY and other major currencies appreciated against the US dollar. Foreign exchange reserves denominated in these currencies were worth more in terms of the base currency, the US dollar.2. Returns from foreign exchange reserves management.<br />
  48. 48. Interest Rates<br />
  49. 49. INDIA AND CHINA IN 2020 <br />According to a recent report from international economic think tanks, India and China soon plans to form a trade coalition in Asia and that is projected to boost 65% of world trade by near 2020.Both the countries India and China are determined to achieve that and create a huge impact on world economic bodies.<br />
  50. 50. THANK <br /> YOU<br />