Principle of economies- Bus 240
INDIA Vs CHINA India and China are the two giant economies and they are the major players in the world economy. Both the economies are growing tremendously at a skyrocketing pace and these economies have their own specialty. We cannot just judge which economy is better by just comparing one or two factors because they have their own style of working and uniqueness . Here we will discuss about some of the factors that shows the real picture of an economy such as economic growth, currencies, military, inflation, quality of life and GDP. In an inevitable comparison between two giant economies India is lacking behind in some of the development processes. For example, the poverty rate of both the economies were at the same figure 20 years back but if we look at the rate of poverty now, China has improved a lot as India hasn't eradicated poverty as quickly as China. Likewise, India has struggled to compete with China in large scale, export oriented manufacturing and foreign direct investment. China has a very good record in export oriented manufacturing because they have used their resources optimally. If we see both the economies have enormous amount of labor resources and China took this as their advantage as the labor cost is cheap and foreign companies are attracted towards China. India in other hand is also growing but if we look at the growth compared to China, India is still lacking behind. Now, if we compare these two economies in the context of balance growth, India has already reached the stage where China wants to be. Consumer spending plays an essential role in Indian economy compared to China. The domestic purchasing power in India is very high therefore, they don't need to implement policies that distort the global economy like China does with its currency regime. Actually, China fears that if there is any currency fluctuation their FDI and export is affected...
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