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POPULATION
ECONOMY
INDIA
 Market based system
 Foreign trade and foreign
investment as integral part
of Indian economy
 Fastest gr...
What are India & China famous for today ?
AGRICULTURE
INDIA
 India is an agricultural country.
 Growth of service sector is
pushing down the contribution
of agric...
COMPARISON
Comparing India and China’s Growth Stories
Indicators India China
Political System Multi-party
Democracy
One-party
authori...
Comparing India and China’s Growth Stories
Indicators India China
Gini index
(standard measure
of inequality)
36.8
47.0 (u...
Why India lags behind china in FDI
attraction?
The main reasons are:-
 Political structure
Infrastructure gap
Monetary ...
Why china is best FDI destination?
The main reasons are:-
Rapid economic growth since
reform period
Infrastructure avail...
HOW CAN INDIA ATTRACT MORE FDI ?
 Political restructuring
 Promote agro based export industries
 Remove corruption
 In...
(INDIA VS CHINA) A COMPARATIVE ANALYSIS
(INDIA VS CHINA) A COMPARATIVE ANALYSIS
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(INDIA VS CHINA) A COMPARATIVE ANALYSIS

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(INDIA VS CHINA) A COMPARATIVE ANALYSIS

  1. 1. POPULATION
  2. 2. ECONOMY INDIA  Market based system  Foreign trade and foreign investment as integral part of Indian economy  Fastest growing economy  World’s second largest labor force CHINA  Centrally planned Economy  Private businesses and capitalism were suppressed  Privatization of Farmland  Promotion of foreign investment  Flourishing small scale entrepreneurs
  3. 3. What are India & China famous for today ?
  4. 4. AGRICULTURE INDIA  India is an agricultural country.  Growth of service sector is pushing down the contribution of agriculture.  Contributing 13.2% of the GDP.  Largely depends on monsoon.  Provides employment to two- thirds of the total population.  15% of export earnings  Rural women play a vital role, 50% of rural labor force.  Yields per hectare of crops in India are very low CHINA  Agriculture accounted for 10.6 % of the GDP  33o million- over 45% of labor force still makes living from farming.  Farming methods have been improved in China.  China produces wheat, rice, potatoes, peanuts, millet, cotton.  Only 15 percent of the total land available in China can be cultivated.  more than 75 percent of the total cultivated land is used for producing food crops.
  5. 5. COMPARISON
  6. 6. Comparing India and China’s Growth Stories Indicators India China Political System Multi-party Democracy One-party authoritarian rule Speed of Growth Economic reforms started in 1991. Average 6% growth rate in past two decades. Economic reforms started in 1978. Average 9.5% growth rate in past two decades. Areas of Specialization Rising power in software, design, services, and precision industry. Dominant in mass manufacturing, electronics and heavy industrial plants
  7. 7. Comparing India and China’s Growth Stories Indicators India China Gini index (standard measure of inequality) 36.8 47.0 (up 10 points from 15 yrs ago) Foreign Direct Investment 6.8% (up from 0.3% in 2004) 17.8% Future Areas of growth R&D, bio- technology, high- value IT enabled services (legal, medical, engineering architecture), manufacturing, agro- based industry IT business, services and continued manufacturing
  8. 8. Why India lags behind china in FDI attraction? The main reasons are:-  Political structure Infrastructure gap Monetary and fiscal policies Productivity Bureaucracy Availability of capital Transport costs Corruption
  9. 9. Why china is best FDI destination? The main reasons are:- Rapid economic growth since reform period Infrastructure availability Abundance of labor and its low cost Rapid expansion of china's domestic market Role of overseas Chinese Increased integration with the world Labor laws Political system and stability
  10. 10. HOW CAN INDIA ATTRACT MORE FDI ?  Political restructuring  Promote agro based export industries  Remove corruption  Increase infrastructure investment  Accelerate privatization efforts  Improve educational fitness  Remove FDI hurdles  Provide monetary and fiscal benefits  Reduce delay in Approving FDI projects

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