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: COMPARISONS OF INDIA AND CHINA’S ECONOMY 0

Comparison of the Chinese and Indian Economy

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Comparison of the Chinese and Indian Economy

In the modern corporate world, the evaluation of the Chinese economy has been identified as one of the fast-growing economy globally. It is therefore recorded as the second largest economy in the world with a nominal Gross Domestic Product as well as being ranked as the leading economy in the globe with them about the parity of the purchasing power. The economy of China has been identified as one of the fast-growing economies with average growth rates approximated at six percent. On the other hand, the Indian economic growth has also registered a positive economic growth with an average of seven percent estimation of the progressive economic expansion (Tait et al., 2016). Therefore, this paper is used in analyzing and comparing the economies of two nations that include China and India; the comparisons provides for the consideration of the Gross Domestic Product per capita and their growth rate in the world’s economy. The identification for the causes resulting to fast economic growth in both nations, the realization of the potential factors in a feature that contributes to the economic development as well as recognizing the critical factors used in distinguishing the two economies.

GDP per Capita and their Growth Rate

China

In the last record of the Chinese Gross Domestic Product per capita indicated an average of seven thousand three hundred US dollars, which is equal to at least fifty-eight percent as average to the world statistics. It shows a rise from the averaged GDP of one thousand six hundred US dollars registered in the 1960s.

The identification of the Gross Domestic Product per capita in a nation is realized by dividing the gross domestic product of a country that is accustomed by inflation against the total number of population in the country (Karwowski & Stockhammer, 2017). Therefore, the calculated growth of GDP per capita in China annually was reported to be at an average of six percent as indicated by the indicators of the World bank Collection for the development that is collected from the sources that are recognized officially with intensive research carried out.

Indian

Recently, the GDP per capita of India was recorded to the range at an average of two thousand US dollars, which is a slight increase from the previous analysis. The calculation of the Indian GDP measure is calculated every year and the records indicate a positive increment in the growth as realized from 1958. The CEIC converts the forecast into US dollars after carrying out the estimate from the annual population count and the yearly nominal GDP (Wei et al., 2017). As recorded in the latest reports, the GDP of India has increased to an average of five to seven percent. The GDP deflector also improved to three percent in the recent years where the gross saving rates of was suggested to settle at thirty percent.

Causes for the Rapid Expansion of Chinese Economy Compared to India

The Chinese economy has registered a faster-growing economy as compared to the Indian economy due to several fascinating factors. For instance, China has invested massively in providing adequate education programs and healthcare services to its citizens that are some of the leading factors in ensuring an individual’s comfort. Providing practical and proper education program to the citizens have assisted in presentencing more skilled individuals who know innovation and research, thus producing new products used in the expert, thus realizing more growth in the economy (Pradhan, 2017). Similarly, the government has established more improved healthcare service provision systems that assist in creating a healthy nation with more of the citizens able to stand active for a longer duration to increase the production rates in the country. On the other hand, the Indian education systems tend to be lower than the order in China, thus having slower innovation skills and skilled human labour to increase production capacity as compared to China.

Similarly, China has invested so much in the innovation and science that assist in boosting the GDP of the nation. The economic growth of China significantly depends on the innovation statuses that helps the individuals come up with new products to satisfy the individual requirements, thus increasing the worlds desire to have the products from India. The innovation practices are carried out from various field s, thus encouraging positive development of every sector (Pradhan, 2017). As compared to India, the innovative factor also contribute to the fast growth of the economy. However, the innovation practices are only carried out in a few fields, thus limiting the production statuses. Lastly, having well stabilized political systems in the nation has also assisted in maintaining quality development f the economy in China due to the well coordinated and swift operation of the methods to derive the actual processes in the economic realizations.

Important Factors Used to Distinguish the Two Economies

The process of indicating the differences in the two economies of India and China depends significantly on various factors that include the factors such as the population growth, human capital, political systems and other factors such as the social welfare and infrastructure in the selected nations for the analysis (Pradhan, 2017). For instance, applying the concept of population growth, both countries, India and China have recorded some of the largest population counts in the Asian continent. In the latest population count, the Indian nation registered an average of one billion individuals in the entire country which is a significant factor used in suggesting the value of the GDP as recorded in the country. Since the GDP is calculated depending on the number of population in the nation about the potentiality of the gross domestic product, the number generally presents the amount of income an individual contributes to the nation’s economy thus the population factor and the purchasing priorities of the individuals in India slows the economic growth as compared to China.

Similarly, the structures of infrastructures also contribute significantly to the identification of economic growth in a specific nation. China being one of the developed countries in the world, with India being amongst the developing nations, the rate of development provides essential and more reliable infrastructures in China that are actively used to increase the economic growth (Wei et al., 2017). The availability of excellent support promotes activities such as transportation thus helping in the delivery of products and raw materials very fast in China thus avoiding the wastage which in turn contribute to the less wastage of resources and sound production of resources to sustain the economic growth. However, as compared to the Indian economy, the infrastructures are less developed as compared to China thus acting as one of the factors that contribute to the slower development of the economy as compared to China.

On the other hand, the political systems in both nations contribute massively to the realization of the economic growth significance with more organized political systems realizing fast growth of the economy (Wei et al., 2017). Both countries are considered more stable in their political systems, thus acting as one of the factors that assist in achieving excellent and fast growth of the economy in both nations.

What the Feature Holds in the Economic development of China and India

In the economic evaluation of China, it is identified as one of the second largest importers and the largest exporter in the world that contains the consumer market that is fast growing. The major industries in the nation include industries such as agricultural, manufacturing and telecommunication services that present a fast-growing system in the country. Therefore, it is assumed that the Chinese economy would continue to grow fast due to the high-tech and innovative concepts presented in the nation (Karwowski & Stockhammer, 2017). Similarly, the Indian economy has also registered fast growing statuses in the previous year’s thus having the potentiality of increasing the production rates in the future years. The innovative practices in India, such as quality research carried out in the medical field’s acts as some of the leading factors that would determine the future of the nation’s economic statuses. Therefore, both countries, China and India, have a high potential of registering well developed economic statuses in the future operations of the organizations.

References

Karwowski, E., & Stockhammer, E. (2017). Financialisation in emerging economies: a systematic overview and comparison with Anglo-Saxon economies. Economic and Political Studies, 5(1), 60-86.

Pradhan, J. P. (2017). Emerging multinationals: A comparison of Chinese and Indian outward foreign direct investment. Institutions and Economies, 113-148.

Tait, P., Saunders, C., Guenther, M., & Rutherford, P. (2016). Emerging versus developed economy consumer willingness to pay for environmentally sustainable food production: A choice experiment approach comparing Indian, Chinese and United Kingdom lamb consumers. Journal of Cleaner Production, 124, 65-72.

Wei, S. J., Xie, Z., & Zhang, X. (2017). From" Made in China" to" Innovated in China": Necessity, prospect, and challenges. Journal of Economic Perspectives, 31(1), 49-70.