The growth of real GDP per capita in India and China with comparison between both the countries.

1. Submitted by -
Manisha Dutta
Application No.-7d01587aed2b11e98ebe55404a470379
Central University of Punjab, Bathinda

2. Acknowledgement
First of all, I would like to thank almighty for giving me the strength,
knowledge, ability and opportunity to undertake this course. Further I want to
thank ‘Academic Writing Course’ Coordinator who provided me a platform to
learn and acquire knowledge in the field of Academic Writing. I am also
thankful to team of MOOC course ‘Academic Writing Course’ for providing us
informative and qualitative sessions through video lectures,pdf files and self
assessment quiz and graded quiz.
At last but not the least I am thankful to my parents, teachers and friends for
their help.
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3. CONTENT
1. Introduction
2. What is real GDP per capita
3. India GDP per capita
4. China GDP per capita
5. Comparison between India and China
6. Conclusion
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4. Introduction
Through most of the twentieth century, only those in the high-income
industrial countries, less than one-fifth of the world’s population, have enjoyed
the fruits of economic well-being. However, since 1980, China and India have
achieved remarkable rates of economic growth and poverty reduction— and
taken together, these countries comprise over a third of the world’s population.
The emergence of China and India as major forces in the global economy has
been one of the most significant economic developments of the past quarter
century.
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5. WHAT IS REAL GDP PER CAPITA?
Real GDP Per capita is the measurement of the total economic output of a
country divided by the number of people and adjusted for inflation. It is used
to compare the standard of living between countries over time.
Real GDP per Capita Formula:
We can calculate real GDP per capita by the following formula-
Real GDP (R) divided by the population (C).Symbolically:
R / C = real GDP per capita.
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6. India GDP per capita:
The Gross Domestic Product per capita in India was recorded at 1963.55 US
Dollars in 2017. The GDP per Capita in India is equivalent to 16 percent of the
world's average. GDP per capita in India averaged 693.96 USD from 1960
until 2017, reaching an all time high of 1963.55 USD in 2017 and a record low
of 304.20 USD in 1960.
INDIA GDP PER CAPITA (2008-2017)
1156.9
1237.3
1345.8
1416.4 1475
1550.1
1645.3
1758.8
1862.4
1963.55
0
500
1000
1500
2000
2500
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Series 1
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7. China GDP per capita
The Gross Domestic Product per capita in China was last recorded at 7329.09
US dollars in 2017. The GDP per Capita in China is equivalent to 58 percent
of the world's average. GDP per capita in China averaged 1662.03 USD from
1960 until 2017, reaching an all time high of 7329.09 USD in 2017 and a
record low of 132 USD in 1962.
CHINA GDP PER CAPITA (2008-2017)
3805
4142
4560.5
4971.5
5336.1
5721.7
6108.2
6496.6
6894.5
7329.09
0
1000
2000
3000
4000
5000
6000
7000
8000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Series 1
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8. COMPARISON BETWEEN INDIAAND
CHINA
India’s Gross Domestic Product (GDP) per capita (current US$)–which is the average
income of each citizen and reflects the well being of the population–increased 21 times from
$81.3 (Rs 1,705) in 1960 to $1709.4 (Rs 1,14,530) in 2016, according to World Bank
estimates. But India made slower progress as compared to China. In 56 years, the gap in per
capita GDP has increased most between India and China, in comparison. In 1960, China’s
GDP per capita ($89.5) was 9% more than India’s. In 2016, China’s GDP per capita ($
8123.2) was 79% more than India’s ($1709.4). This widening gap could be attributed to
greater increases in productivity of the Chinese labour force and more capital per worker.
Thus, in 1960, the economies of China and India were almost the same in terms of gross
domestic product (GDP). India’s GDP per capita was, in fact, slightly higher than that of its
much larger eastern neighbour. Then, the Chinese economy grew at an average rate of 10
percent between 1980 to 2000, leaving India far behind.
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9. CONCLUSION
The world’s two fastest growing major economies are China and India. Both countries
demonstrate a common pattern of development different from that of the slowly growing West.
Rapidly growing state investment plays a significant role in China and India’s economic
expansion, while private investment is either growing very slowly or declining. However, India is
now becoming the world’s fastest-growing large economy, and probably will be for years if not
decades to come. The IMF forecasts growth of 7.4% for India in 2018, with international banks
returning a range of predictions running from a low of 7.0% (Standard Chartered and HSBC) to a
high of 7.5% (Nomura and HSBC). China’s maturing economy is unlikely ever again to match
such stellar growth numbers. Even at a headline growth rate of 7% or more, India’s real per capita
GDP growth will hover around 6% per year, due to high population growth that soon make India
the world’s most populous country. But China has a larger population but its per capita GDP is
five times India’s. To significantly increase its GDP at per capita level India will have to maintain
double-digit growth for many years and hence 7% is a modest achievement. Thus, focus should be
given more on the growth of GDP per capita as it decides the standard of living of a country.
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10. REFERENCE
 Available at https://www.worldbank.org
 https://www.imf.org
 https://tradingeconomics.com
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