ECONOMY OF INDIA AND CHINA

Making an in depth study and analysis of India vs. China economy seems to be

a very hard task. Both India and China rank among the front runners of global

economy and are among the world's most diverse nations. Both the countries

were among the most ancient civilizations and their economies are influenced

by a number of social, political, economic and other factors. However, if we try

to properly understand the various economic and market trends and features

of the countries, we can make a comparison between Indian and Chinese

economy.

In some respects, the rise of India has been greatly overshadowed by what has

happened in China over the past twenty years. If the development in China had

not occurred, then it would be India that would be considered the new darling

of global growth. To some extent, that has enabled India to commence its own

growth curves without the media attention that has been focused on China.

If we make the analysis of the India vs. China economy, we can see that there

are a number of factors that has made China a better economy than India. First

thing, India was under the colonial rule of the British for around 190 years. This

drained the country's resources to a great extent and led to huge economic

loss. On the other hand, there was no such instance of colonization in China. As

such, from the very beginning, the country enjoyed a planned economic model

which made it stronger.

Going by the basic facts, the economy of China is more developed than that of

India.

BASIS INDIA CHINA

GDP(Nominal) $1.235 trillion(11th) $4.990trillion(3rd)

GDP(PPP) $3.526 trillion(4th) $8.770trillion(2nd)

GDP Growth 7.4%(yr-2009-10) 9.1%(yr-2009-10)

GDP Per Capita(nominal) $1031(yr-2009)

Rank-139

$3677(yr-2009)

Rank-97

GDP Per Capita(PPP) $2941(yr-2009)

Rank-128

$6567(yr-2009)

Rank-98

GDP(By Sector) Agriculture-17.5%

Industry-20%

Services-62.5%

Agriculture-10.9%

Industry-48.6%

Services-40.5%

Inflation 10.16%(may-2010) 3.1%(Q-2,2010)

Labour Force 467 million(yr-2009) 812.7 million(yr-2009)

Labour Force(By

occupation)

Agriculture (52%)

Industry (14%)

Services (34%) (2003)

Agriculture (39.5%)

Industry (33.2%)

Services (27.2%) (2008)

Gini Index 36.8 46.9

Unemployment 10.7% 4.3%

Exports $155 billion (yr-2009 ) $1.2 trillion (yr-2009)

Imports $232.3 billion (yr-2009 ) $1.01 trillion (yr-2009)

Revenues $153.5 billion (yr-2008 ) $972.3 billion (yr-2009)

Expenses $223 billion (yr-2009 ) $1.137 trillion (yr-2009)

Foreign Reserves $287.37 billion $2,447.1 billion

MAIN INDUSTRIES:-

INDIA CHINA

telecommunications

textiles

chemicals

food processing

steel

transportation equipment

cement

mining

petroleum

machinery

information technology

mining and ore processing iron

steel, aluminium and other

metals

Coal

machine building

Armaments

textiles and apparel

petroleum

cement

chemicals

fertilizers

consumer products

including footwear

toys, and electronics

food processing

transportation equipment

including automobiles, rail cars

and locomotives, ships and

aircraft

telecommunications

equipment

commercial space launch

vehicles and satellites

IMPORT GOODS

INDIA CHINA

crude oil

machinery

gems

Fertilizer

chemicals

electrical and other machinery

oil and mineral fuels

optical and medical equipment

metal ores

plastics

organic chemicals

EXPORT GOODS

INDIA CHINA

software

petroleum products

textile goods

gems and jewellery

engineering goods

Chemicals

leather manufactures

electrical and other machinery

including data processing

equipment

apparel

textiles

iron and steel

optical and medical equipment

MAIN EXPORT PARTNERS

INDIA CHINA

US 12.3%

UAE 9.4%

US 17.7%

Hong Kong 13.3%

China 9.3% Japan 8.1%

South Korea 5.2%

Germany 4.1%

MAIN IMPORT PARTNERS

INDIA CHINA

China 11.1%

Saudi Arabia 7.5%

US 6.6%

UAE 5.1%

Iran 4.2%

Singapore 4.2%

Germany 4.2%

Japan 13.3%

South Korea 9.9%

Taiwan 9.2%

US 7.2%

Germany 4.9%

MAIN SECTORS OF ECONOMY

INDIA CHINA

1. Agriculture

Milk

Cashew Nuts

Tea

1. Agriculture

Rice

Oilseeds

Wheat

Wheat

Rice

Sugar

Cotton

2. Banking and finance

Commercial Banks

Cooperative Banks

Non banking financial

companies

3. Natural Resources

Coal

Iron

Manganese

Limestone

Petroleum and

Natural Gas

Pharmaceuticals

Mica

Bauxite

Tobacco

Soybean

Peanuts

Millet

2. Energy and minerals

Mining

Hydroelectric Resources

Coal

Oil and Natural Gas

Metal and Non metals

3. Industry and manufacturing

Steel Industry

Automotive Industry

Telecommunication

Defence Industry

Shipping Industry

Pharmaceutical Industry

4. Services

Tourism