A Comparative Study of Infrastructure in India and China Withfocus on the Road Transport Sector.

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This report aims to make a comparison of the Indian and Chinese Infrastructure in Transport Sector in terms of progress and reforms they have made to deal with their increasing demand requirements. The comparison of India was made with China, because, India when independent was much similar to China in terms of demographics and Infrastructure availability. Now India and China are home to almost two-fifths of the human population and are also two of the world’s fastest growing economies. The Transport scenario of both the countries has been studied and the differences are probed into briefly. India and China have adopted different models of Infrastructure growth and both models have their own advantages and disadvantages. It has been widely debated that that India has a better experience of political management of conflict in a pluralistic society, on the other hand in the absence of democratic system, China may not be able to effectively deal with social unrest emanating essentially from growing inequalities and rising aspirations. Growing regional inequalities in China are seen as a major challenge on the other hand the regional differences in development profiles within India may be equally problematic. China in an “authoritarian” situation, regional imbalances may actually provide a labor cost advantage, with appropriate relocation for many more years to come. Similar possibilities in India are minimal due to very low level of human capital and the major challenge of political compulsions of multiparty federal along with large regional parties system. There is no doubt that India scores over China in “soft infrastructure” while China is far ahead in “hard infrastructure”, despite a very large investments in the hard infrastructure in India in recent years. With regard to Foreign Direct Investment, there is less legal, procedural and other policy hurdles in China than in India. But the key differences between China and India are that the former has a larger market size, higher growth and better hard infrastructure. China has surged far ahead of India in its quest to satisfy the growing infrastructure demand. Through this project, I wish to emphasize the Indian and Chinese methodology for achieving considerable success in transport sector. The way through which various projects were financed and approved through BOT and MCA Finally if we look, both countries have started to invest globally with domestic companies acquiring foreign companies and investing in Greenfield projects in abroad also. Here China is ahead of India in this regard, although it is the private sector that is leading such investments for India while the state is the active investor abroad for China. Here corporate strategies guide such investments in the case of India, Geopolitical and strategic motives seem equally important in the case of China.

“If India and Chinawere both highways, the Chinese highways would be a six-lane, perfectly paved road, but with a huge speed bump off in the distance labeled ‘political reform: how in the world do we get from communism to a more open society ?” When 1.4 billion people going 80 miles an hour hit a speed bump, one of two things happens: Either the car flies into the air and slams down, and all the parts hold together and it keeps on moving – or the car flies into the air, slams down and all the wheels fall off. Which it will be with China, I don’t know. India, by contrast, is like a highway full of potholes, with no sidewalks and half the streetlamps broken. But off in the distance, the road seems to smooth out, and if it does this country will be a dynamo.” THOMAS FRIEDMAN.

Three- time Pulitzer Prize winning The New York Times
Columnist and author of the book “The World is Flat”.
China’s impressive growth and implied economic acumen have left the world...
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