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PRESENTED BY:
ANKIT DABRAL
M.B.A

INTRODUCTION
 CHINA
 Socialist economy
 World 2nd largest
economy and by PPP
after the U.S.
 Largest exporter and 2nd
largest importer.
 INDIA
 Mixed economy
 9th largest economy in
world and third largest by
PPP.
 19th largest exporter and
10th largest importer

RATES OF GDP GROWTH
 CHINA
 The Chinese economy
has grown at an
average annual rate of
9.8% for two and a
half decades, showing
volatility around high
trend.
 INDIA
 India’s economy has
grown at around 5-6
per cent per year over
the same
period, breaking from
“Hindu” rate of 3 per
cent. But very recently
the average growth rate
for the last four years is
just above 8%

BASIS INDIAN
ECONOMY
CHINESE
ECONOMY
GDP
(nominal)(2012)
US$ 1.825 trillion US$ 8.227 trillion
GDP (nominal) per
capita (2012)
US$ 1,500 US$ 6,100
GDP(PPP)(2012) US$ 4.761 trillion US$ 12.610 trillion
GDP(PPP) per
capita (2012)
US$ 4,148 US$ 10,027

GROSS DOMESTIC
PRODUCT
 Growth in china is faster than
India because of larger FDI.
 SEZ policies provides
comprehensive infrastructural
facilities to attract FDI
 Improper distribution of wealth in
India

TRADE
PATTERNS
 Rapid export growth includes
more world market shares
which is attracted by cheap
labor and subsidized
infrastructure.
 Except export of
services, export growth is
lower in India due to poor

RATES OF INVESTMENT
 The investment rate in China (investment as
a share of GDP) has fluctuated between
35 – 44% over the past 25 years, compared
to 20 - 26% in India.
 Infrastructure investment from the early
1990s has averaged 19% of GDP in
China, compared to 2% in India.

Country Investment
2008
(gross fixed)
(% of GDP)
Investment
2012
(gross fixed)
(% of GDP)
China 40.20 46.01
India 39.00 29.09

POVERTY REDUCTION
 CHINA
 Officially 4 per cent of the
population now lives
under the poverty
line, unofficially around
12 per cent.
 FROM 1981 TO 2005
Poverty rate –
Dropped by 84% to 16%
 INDIA
 Official poverty ratio
much higher and
persistent, currently 28
per cent.
Food deprivation is
much higher.
 FROM 1981 TO 2005
Poverty Rate –
Dropped by 60% to 42%

Human Development Index
 Life expectancy- higher the better;
 Adult literacy rate- higher the better;
 Percentage of population below poverty line- lower the better;
 Infant mortality rate- lower the better;
 Maternal mortality rate- lower the better;
 Percentage of population having access to improved water sources-
higher the better;
 Percentage of population which is undernourished- lower the better;
 Percentage of population having access to improved sanitation- higher
the better.
 Based on all these parameters a composite index is constructed
known as the HUMAN DEVELOPMENT INDEX (HDI). Higher value of
HDI points to higher level of growth and development of a country.
 Making a comparison of India and China, China is far ahead of India in
all the above mentioned spheres.

HUMAN DEVELOPMENT INDEX
 CHINA
 RANK 101/187
Earlier extensive public
provision of health and
education.
Education until Class
X, and public services to
ensure nutrition, health
and sanitation.
 INDIA
 RANK 136/187
The public provision of
all of these has been
extremely inadequate
throughout this period
and has deteriorated in
Per Capita terms since
the early 1990s.

EMPLOYMENT GROWTH
 India: Growth rates of employment
(Annual compound rates per cent)
1993-94 to
1999-2000
1999-2000 to
2004-05
Agricultural self employment -0.53 2.89
Agricultural wage employment 1.06 -3.18
Total agricultural employment 0.03 0.83
Rural non-agri self employment 2.34 5.72
Rural non-agri wage employment 2.68 3.79
Rural total non-agri employment 2.26 5.27
Urban non-agri employment 3.13 4.08
Secondary employment 2.91 4.64
Tertiary employment 2.27 4.67
Total non-agricultural
employment 2.53 4.66

EMPLOYMENT GROWTH
 China: Output and employment growth
1980-
90
1990-
2000
Primary sector
Annual employment growth 2.8 -0.8
Annual Value Added growth 6.2 3.8
Employment elasticity 0.45 -0.21
Secondary sector
Annual employment growth 5.9 1.6
Employment elasticity 0.62 0.12
Tertiary Sector
All sectors

We can conclude that:
CHINA is well ahead of INDIA in most of the
departments.
INDIA is ahead of CHINA in Banking and
Legal sector.
CHINA is well ahead in Infrastructure.
INDIA also exceeds CHINA in its BPO / IT
sector.
Rest among all the sectors it is China which is
ahead whether it is Agriculture, Trade
Patterns, Employment Growth, Human
Development

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