12 slides excluding reference and first page every slide must contain proper notes Team C: India Vs china Research each economy assigned to your Team. Compare similarities and differences between your

Running head: COMPARISON OF CHINA’S AND INDIA’S ECONOMY 0

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Comparison of China’s and India’s Economy

China and India, Asia's economic competitors over the years, have a significant impact on the world's economy; however, China has a more excellent economy compared to India. The competition has made the countries thrive among the best industrial nations in the world. China astonished the world by overtaking the United States of America's economy. India's high population, less human capital, and a corrupt government system is a liability to its economic growth. China has a better economy because it has capital accumulation, better human capital giving it a higher GDP than India.

China has moved to a market-oriented system that plays a significant role currently from a centrally planned system. China has implemented amendments in a gradualist fashion, resulting in sufficient gains that have added up to an increase in GDP. For example, improvements start with the phase-out of collective agriculture(Gao 2015). Regular PPP basis that adjusts for price differences, China in 2016 stood as the broad economy in the world, outpacing the US in 2014 for the first time in history. China became the world's biggest exporter in 2010, and the most significant trading nation in 2013. In conclusion, India is seen as a consumer country and less of a manufacturing state, thus making it less invested in by multinational companies.

China and India being the second and fifth-most significant countries of the world, respectively, are two emerging world economies. According to the International Monetary Funds (2019), both states share 19.46% and 27.18% of the total global wealth in the purchasing power parity (PPP) and nominal terms, respectively. In Asia, both China and India contribute half of the GDP; however, China's GDP is higher than India's. For example, the International Monetary Fund (2019) states that in 2019, Chinas GDP is 4.78 times greater than India's. PPP basis China's GDP is 2.38 times higher than India's. Significantly, both countries have been competitive in GDP per capita terms, although China has a more senior lead in the economy. In brief, the economic befriending of other states by China has done it better than harm economically.

Over the years, China's economic booms are shown by several facts and considerations that were significant to the world's economic competition, such as capital accumulation and human capital. China's financial success was a considerable challenge brought about by these reasons. Capital accumulation is the primary cause of China's commercial excellence, the growth in the stock of capital assets. For example, assets such as communication systems, manufacturing machinery, and new factories were significant (Velamuri 2013). The reason being there was a considerable number of Chinese workers in the 1980s until China overtook India's economy in 1990, a sharp increase in productivity, which was substantial to worker efficiency. Chinese manufacturing sectors are in estimate eight times the size of India's presently. India, on the other hand, was seen as a market rather than a manufacturing state like China. For example, multinational companies had a different approach to India and China (Anand 2013). China is a manufacturing state base for supplying to the rest of the world, whereas, India, due to its vast population, is seen as a large market for its products.

People thrive as well as end economic development in their states of residence. They are a benefit if adequate and attest to be a liability if in excess. Analysis of the population growth in China and India are significant to their economic growth. The per capita income determines the population growth whereby, after the population growth occurs when per capita income is higher than the standard to a threshold level, after which population declines. For example, Rapid population growth decreases the Differential per capita income(Anand 2013). The Differential of per capita income is considered a better estimate of the interaction between population growth and economic conditions — time-series differential per capita income measures provision made annually. China's population is significantly helpful to its rapid economic growth, whereas India's population crossed the optimum limit making it a liability to the country's population.

Human capital advances through health, migration, education, information, and job training. The human capital resources are critical and fundamental; primary healthcare and education are crucial regardless of their work commitment productively (Sharma 2019). The most significant advantage China had in the early 1980s was human Capital. For instance, in 1982, China's literacy rates were 64.4% compared to India's 37%, whereby the average years of school in China was higher than that of India (Velamuri 2013). China had a healthier population in terms of health care and education. China furthermore had an emphasis on the gender gap whereby they encourage gender equality up to yet India hardly promotes gender equality. Both education and health have positive impacts on the growth of India, although they negatively affect the growth rate of China. Inclusively there is a need for the developing countries to invest in human capital.

In India, despite the history of transparent and widely contested elections and the presence of open media, the number of corrupt politicians is increasing. Politicians have taken advantage of the economy and the law to favor themselves. For example, significant funds are through a wide variety of programs and interventions, which have to lead to costly scandals with losses of billions of dollars (Sukhtankar and Vaishnav 2015). In China, companies in China that experience extreme export slowdown witnessed a significant increase in the number of strikes per annum. The government was likely to replace the party secretary that saw a rise in the name of attacks. It was predictable that there was a slowdown in exports, therefore, suggesting that local leaders were accountable. Consequently, it is critical whenever the government is unstable, the economy of a nation collapses as the government is the regulator of the nation's economy.

In summary, India should improve its gender discrimination and endure that women can also work in the manufacturing companies so that human capital is adequate for the economic growth of the state. Human capital is a critical asset for a country to develop because without human capital; there will be less labor. Before china overtook India economically, China was less developed and had inadequate human capital. Subsequently, India is also thriving to catch up with China's economic excellence that booms the world.long as China keeps improving and putting more emphasis on friendly investments with other states it will keep booming

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