PRESENTED BYTANUSHREE MANGLA NIDHI JAKHAR ANKIT JHAWAR NIKETA KATHEL SASANKA DAS

Mixed economy 9th largest by market exchange rates and 4th largest by PPP World`s 2nd largest labor force Service, Industrial and Agricultural sectors Foreign trade and Foreign investments

Single party state governed by the Communist Party of China After the 1949 revolution China`s economic system was officially made into a Communist system The PRC ranks as the worlds second largest economy Largest exporter and second largest importer of goods Worlds fastest growing economy. Mao Zedong and his reforms

What are India & China famous for today?

India Economic Fact Sheet

GDP- growth rate: 6.6% (2008) 9% (2007) 9.6% (2006) GDP per capita (PPP Purchasing power parity) $2,800 (2008) $2,700 (2007) $2,500 (2006)

GDP Composition by sector: agriculture: 17.2% industry: 29.1% services: 53.7% (2008)

China Economic Fact Sheet

GDP real growth rate: 9.8% (2008) country comparison to the world: 13% (2007) 11.6% (2006) GDP-Per capita (PPP-Purchasing power parity):

$6,000 (2008)country comparison to the world: $5,500 (2007) $4,900 (2006)

GDP composition by sector: agriculture: 10.6% industry: 49.2% services: 40.2% (2008)

Indicators Political System Speed of Growth

India
Multi-party Democracy Economic reforms started in 1991. Average 6% growth rate in past two decades. Rising power in software, design, services, agriculture, banking, education, etc.

China
One-party authoritarian rule Economic reforms started in 1978. Average 9.5% growth rate in past two decades. Dominant in mass manufacturing, electronics and heavy industrial plants

Areas of Specialization

Indicators Gini index (standard measure of inequality) Foreign Direct Investment Future Areas of growth

India
36.8
6.8% (up from 0.3% in 2004)

China
47.0 (up 10 points from 15 yrs ago) 17.8%

R&D, bioIT business, services technology, highand continued value IT enabled manufacturing services (legal, medical, engineering architecture), manufacturing, agrobased industry

Agriculture Sector

India
Plays a significant part Provides living to almost two-third of employed class in India Contributes 16.1% to Indias GDP Occupied almost 43 % of Indias Geographical Area Development made with the help of Green Revolution Largely depends on monsoon Contributes 21% in Total Exports Rural women play a vital role Yields per hectare of crops in India are very low

China
Agriculture accounted for 13 % of the GDP 1.3 billion- over 900 million of labor force still makes living from farming. Maintained a high rate of grain sufficiency Chinas Export Registered an avg. of 13.2 % annual growth output rose 2.9% year on year to 546.41 million tonnes in 2010 Farming methods have been improved in China Greater Efforts to stabilize agricultural costs.

INDUSTRIAL SECTOR

indias Manufacturing Sector

Manufacturing contributes around 15% of GDP of the country.

According to CSO data quarterly estimate of GDP for manufacturing stood at 38.1 billion US $.

India ranks among top 12 producers of manufacturing value added products.

In Textile it ranks 4th after China, US & Italy. In Electrical machinery & apparatus India ranks 5th. India holds 6th position in basic metals category.

indias Manufacturing Sector

7th in Chemicals & chemicals products, 10th in leather & leather products, 12th in machinery & equipment & motor vehicles. According to Investment Commission of India the manufacturing sector is estimated to have 180 billion US $ investment opportunity over next 5 years. Manufacturing sector is the largest employer which employees 25.5 million people of the total workforce. Which gives Employment growth rate 2.78% to the country.

chinas Manufacturing Sector

Chinese

manufacturing sector accounts for 43% of Chinese economy. Its economy growth in average is almost 8% every year. Chinese manufacturing sector ranks 4th in the world after US, Japan, & Germany. Chinas fast growing domestic market worldwide demand for Chinese goods & the cost advantage China offers to manufacturers are fueling the growth of manufacturing sector in China.

chinas Manufacturing Sector

China

has 50% share of worldwide camera market & 30% of Air conditioners . 25% of Washing Machines & 20% of Refrigerators. Chinas crude steel production rose by 28.25%. Investment in chemical industry grew by 35.9%.

SERVICE SECTOR

 Service Sector Share:

Indias GDP 54% Chinas GDP 40.7%

Economic Growth in India is led by IT

Industries while in China It is led by Manufacturing Industries

Service Sectors Finance and Insurance Government and Social Organizations Real Estate Wholesale, Retail Trade and Catering Transport, Telecommunications etc Transport and Storage Post and Telecommunications Education, Health, Research etc Culture and Arts Health, Sports and Social Welfare Scientific Research and Polytechnic Others

China
16.50 8.01 6.07 23.57 16.96 8.76 8.20 28.87 8.71 2.96 2.25 14.95

India
13.27 10.78 11.64 30.39 19.18 10.86 8.32 14.73 7.98 2.14 0.89 3.71

Total

100

100

INDIA
Four Keys- IT Services, ITES, Software and e-Business. Deals in both International and domestic companies and customers

CHINA
Software- fastest growing service industry Deals in domestic companies and customers

Note: China have efficient service on the other hand as drawback they have constant threat of intellectual property rights violation

50 yrs ago, India and China were among the poorest and economically most isolated countries in the world.

How did China and India emerge as economic giants?

According to a recent report from international economic think tanks, India and China soon plans to form a trade coalition in Asia and that is projected to boost 65% of world trade by near 2020.Both the countries India and China are determined to achieve that and create a huge impact on world economic bodies.