India vs.

China
Economy
Presented By:
Team 1
Abhishek Kuma
Jaspreet kaur
Khushboo Gulat
Richa Garg
Yogesh Grover
India and China Emerging Global Players

High economic growth rate

Rapid raising share in world

Large inflows of FDI

 Geographical
India China
 Seventh largest
• Third Largest
 Total area: 32, 263 sq kms
• Total area: 9,596,961 sq. km.
 Cities:  Capital- New Delhi.
• Cities: Capital-Beijing. Other
Other major cities-Mumbai,
major cities--Shanghai,
Delhi, Kolkota, Banglore,
Tianjin, Shenyang, Wuhan,
Hyderabad.
Guangzhou, Chongqing,
 Terrain: Upland plain
Harbin, Chengdu.
(Deccan Plateau) in south, flat
• Terrain: Plains, deltas, and
to rolling plain along the
hills in east; mountains, high
Ganges, deserts in western
plateaus, deserts in west.
region of India, Himalayas in
• Climate: Tropical in south to
northern region.
 Climate:The Tropical subarctic in north. Source:www.india.gov.in
www.china.gov.in
monsoon in south India to
 Demographics
India
 Population:1,173,108,018(2010 est.)
 Age structure
 0-14 years: 30.5%
 15-64 years: 64.3%
 65 years and over: 5.2%
 Population growth rate: 1.376%
(2010 est.)
 Birth rate: 21.34 births/1,000
population (2010 est.)
 Death rate: 7.53 deaths/1,000
population (July 2010 est.)
 Net migration rate: 0.05
migrant(s)/1,000 population (2010 est.)
China
 Population (July 2010 est.):
1,330,141,295.
 Age structure
• 0-14 years: 19.8%
• 15-64 years: 72.1%
• 65 years and over: 8.1%
 Population growth rate (2010 est.):
0.494%.
 Birth rate:12.17 births/1,000
population (2010 est.)
 Death rate: 6.89 deaths/1,000
population (July 2010 est.)
 Net migration rate: 0.34
migrant(s)/1,000 population (2010
est.)
 Contd….

India China

 Urbanization
urban population: 29%
(2008)
rate of urbanization: 2.4%
(2005-10 est.)
 Sex ratio:1.08 male(s)/female
(2010 est.)
 Infant mortality rate: 49.13
deaths/1,000 live births
 Life expectancy at birth:
66.46 years
 Literacy: 71%
 Urbanization
urban population: 43%
(2008)
rate of urbanization: 2.7%
(2005-10 est.)
 Sex ratio:1.06 male(s)/female
(2010 est.)
 Infant mortality rate: 16.51
deaths/1,000 live births
 Life expectancy at birth:
74.51 years (2010 est.)
 Literacy: 91.6%

Source: indexmundi.com
THE LEGACY OF THE ONE CHILD POLICY
1979
Few children to support a rapidly aging
population
The era of cheap, young Chinese labor is over
A rapidly aging population
Socio-Cultural

Nationality
Ethnic groups
Religions
Languages
 Political
INDIA
 Country Name – Republic Of India.
 Govt. Type – Federal Republic.
 Capital – New Delhi.
 Administrative Division – 28 States & 7
Union Territories.
 Independence – 15th Aug. 1947.
 Constitution – 26th Jan. 1950.
 Govt. Power – Executive, Judiciary &
Legislative.
 Legal system – Based on English common
law.
 Suffrage – 18 yrs.
 Political Parties – NDA & UPA.
CHINA
 Country Name – People’s Republic Of
China.
 Govt. Type – Communist State.
 Capital – Beijing.
 Administrative Division – 23 Provinces, 5
Autonomous Region, & 4 Municipalities.
 Independence – 221 BC, 1st Jan. 1912 & 1
Oct. 1949.
 Constitution – 4 Dec. 1982.
 Govt. Power - Executive, Judiciary &
Legislative .
 Legal System – Based on Civil law system.
 Suffrage – 18 yrs.
 Political Parties – CCP.
 Infrastructure and Technology
INDIA CHINA
 Road – Total length 30 lakh km (both  Road – Total length 2.9 million km
metalled & unmetalled).  Rail – Total length 91000 km
 Rail – Total length 63000 km  Shipping – 4200 km (2600 km in
(including 13000 km electrified). Himalayan boarder), total income
 Shipping – 90% trade through sea, US$100 bn.
total income 64bn.  Aviation – Total turnover US $13.1
 Major ports – Kolkata, Mumbai, bn.
Chennai, Goa, Cochin &  Telecom – 1.2 billion, total income
Vishakhapatnam. $56.9 bn.
 Aviation – US $9 bn. turnover in  Internet – 420 million
2010, total no. of passenger 3.67
million, annual growth 9-10%.
 Telecom – 800 million subscriber in
2010, total income $19.50 bn.
 Internet - 53 million
 Economic Indicators
India China
 Rank 2nd (nominal) / 2nd (PPP)
 Rank 11th (nominal) / 4th (PPP)
 Currency Renminbi (RMB); Unit:
 Currency Indian Rupee (INR)=100
Yuan (CNY)
Paise
 Fiscal year Calendar year 01
 Fiscal year Calendar year (1 April —
January to 31 December
31 March)
 Trade organizations WTO,
 Trade organizations WTO, SAFTA,
APEC, G-20 and others Statistics
G-20 and others
 GDP $5.88 trillion (nominal:
 GDP $1.43 trillion (nominal: 11th;
2nd; 2010),$10.08 trillion (PPP:
2010)
2nd; 2010)
$4.00 trillion (PPP: 4th; 2010)  GDP growth 10.3% (1st; 2010)
 GDP growth 8.9% (2010, Q2)
 GDP per capita $3,735 (nominal:
 GDP per capita$1,176 (nominal:
97th; 2009), $7,518 (PPP: 93th;
137th; 2010) ,$3,290 (PPP: 127th; 2010)
2010)  GDP by sector industry (46.8%),
 GDP by sector services (57%),
services (42.6%), agriculture

India
 Inflation (CPI) 8.43% (December
2010)
 Gini index 36.8 (List of countries)
 Labour force 478 million (2nd;
2009)
 Labour force by occupation
agriculture (52%), industry (14%),
services (34%) (2009 est.)
 Unemployment 9.4% (2009–10)
 Main industries Information
Technology , telecommunications,
textiles, chemicals, food processing,
steel, transportation equipment,
cement, mining, petroleum,
machinery, software, pharmaceuticals
 Ease of Doing Business Rank
134th
Contd….
China
 Inflation (CPI) 5.1% (November 2010)
 Gini index 46.9 (List of countries)
 Labour force 813.5 million (1st; 2009)
 Labour forceby occupation agriculture
(39.5%), industry (27.2%), services
(33.2%) (2008)
 Unemployment 4.2% (July 2010)
 Main industries 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
 Import and export
China
India
 Exports US$1,577.93 billion ; 2010
 Exports $210 billion (17th; 2010)
 Export goods electrical and other
 Export goods software, petroleum
machinery, including data processing
products, textile goods, gems and equipment, apparel, textiles, iron and
jewellery, engineering goods, steel, optical and medical equipment
chemicals, leather manufactures  Main export partners US ,Hong
 Main export partners US, UAE,
Kong, Japan, South Korea, Germany
China(2008) (2009)
 Imports $327 billion (11th; 2010)  Imports US$1,394.83 billion; 2010
 Import goods crude oil, machinery, 
Import goods electrical and other
gems, fertiliser, chemicals machinery, oil and mineral fuels,
 Main import partners China, optical and medical equipment, metal
Saudi Arabia , US, UAE, Iran, ores, plastics, organic chemicals
Singapore, Germany (2008)  Main import partners Japan ,Hong
Kong, South Korea, US, Taiwan,
Germany(2009)

India
FDI stock $191.1 billion (23rd;
2010)
Gross external debt $237.1
billion (2010 est.)
Public debt 3,495,152 crore
(US$758.45 billion) (2009–10)
Revenues $129.8 billion (2009
est.)
 Expenses $214.6 billion (2009
est.)
 Economic aid $1.724 billion
(2005)
Credit rating 1.164 trillion
(2010 est.)
 Foreign reserves $300 billion
(6th; Nov 2010)
Contd….
China
FDI stock $100 billion (2010)
Gross external debt $347.1
billion (22nd; 2009)
Public debt 18.2% of GDP
(107th; 2009)
 Revenues $1.260 trillion (2010)
 Expenses $1.358 trillion (2010)
 Economic aid: $1.12 per capita
(2008)
 Credit rating $5.555 trillion
(4th; 2008)
 Foreign reserves $2.847
trillion(2010)
 Trade relations
India considers China its largest trading partner
Indo China trade is US$60 bn (2009)
China exports to India China imports to India
Electrical Machinery Machinery
Machinery Plastic
Plastic Ores
Organic Chemicals and Inorganic Chemicals
Slag
Iron And Steel
Iron/Steel Products Ash
Rare Earth Metals Iron And Steel
Fertilizers Metals
Impregnated Text Fabrics Organic Chemicals
Manmade Filament Salt
Fabric
Earth, Stone
Silk
Vehicles Inorganic Chemicals
Mineral Fuel Rare Earth Metals
Oil Etc Cotton and Yarn
Fabric
Copper Etc
Growing trends

Year Indian Imports Indian Exports Trade Volume

2004 5925.58 7672.51 13,598.09

Growth 77.15% 80.41% 78.99%

2005 8934.64 9768.34 18702.98

Growth 50.5% 27.2% 37.4%

2006 14588.04 10469.18 25057.22

Growth 63.23% 7.05% 33.87%

2007 24036.44 14658.79 38695.64

64.7% 40.02% 54.42%

Growth
31500 (approx) 20300 (approx) 51800 (approx)
2008
31% 39% 34%
 Agriculture
India
 India is the largest producer in the
world of milk, jute and pulses
 2nd largest producer of rice, wheat,
sugarcane, cotton and groundnuts,
fruit and vegetable producer.
 India is also the second largest
producer and the largest consumer of
silk in the world
 15.7% of India’s GDP
 Employed 52.1% of the total
workforce
 Average yield in 30% to 50% highest
average yield in the world
China
 World's largest producer and
consumer of agricultural products
 China is the world's largest producer
of rice and is among the principal
sources of wheat, corn (maize),
tobacco, soybeans, potatoes,
sorghum, peanuts, tea, millet, barley,
oilseed, pork, and fish
 China fed 20 % of the world's
population with only 7 % of the
world's arable land
 13% of China's GDP
 Animal husbandry constitutes the
second most important component of
agricultural production
India's Banking and Finance Sector
 RBI

 Bank branches 72,170 in 2007

 The total deposits 3,830,922 crore (US$831.31 billion) in 2008–09

 India's gross domestic saving in 2006–07 as a %of GDP stood at a high

32.7%.

 The public sector banks hold over 75% of total assets of the banking
industry, with the private and foreign banks holding 18.2% and 6.5%
respectively.
China’s Banking and Finance Sector
 The chief instruments of financial and fiscal control are the People's
Bank of China (PBC) and the Ministry of Finance.

 Remittances by overseas Chinese are managed by the Bank of China

(BOC), which has a number of branch offices in several countries.

 98% of banking assets are state owned

 India’s Industry
 India has one of the world's fastest growing automobile industries
 India is 12th in the world in terms of nominal factory output.
 Textile manufacture is the second largest
 Ludhiana produces 90% of woollens in India and is known as the
Manchester of India.
 India is 13th in services output
 India ranks first in IT Sector
 IT industry in the country's GDP 7% in 2008.
 In 2009, seven Indian firms were listed among the top 15 technology
outsourcing companies in the world.
 Tourism in India is relatively undeveloped, but growing at double
digits.
 3rd largest fishing industry(2008)
 Contd….

 Organised retail supermarkets accounts for 24% (2008)

 Mining forms an important segment of the Indian economy,
with the country producing 79 different minerals
(excluding fuel and atomic resources) in 2009–10
 India imported about 70% of its crude oil(2010)
 India's oil reserves meet 25% of the country's domestic oil
demand
 India is the fourth largest consumer of oil in the world and
imported $82.1 billion worth of oil (2010)
 Reliance Industries Limited (RIL) which operates the
world's largest oil refining complex.
 India is not a creditor to IMF from 2008
 China’s Industry
 China is also the largest exporter and second largest importer of
goods in the world
 For 2010, inbound foreign direct investment into China
surpassed $100bn for the first time, and investment overseas by
Chinese companies in non-financial sectors totaled $59 billion.
 In 2010, there were approximately 10 million small businesses
in China.
 World Trade Organization (WTO) in 2001
 In mid-2010,China became the world's second largest economy
 China is the largest creditor nation in the world and owns
approximately 20.8% of all foreign-owned US Treasury
securities.
 Contd….

 China ranks first in automobile sector

 China's services output ranks fifth worldwide
 China's tourism industry is one of the fastest-growing industries in the
national economy
 China's global trade exceeded $2.4 trillion at the end of 2008
 Industry and construction account for 46.8% of China's GDP
 Around 8% of the total manufacturing output in the world comes from
China itself.
 China ranks third worldwide in industrial output
 Textile manufacturing, a rapidly growing proportion of which consists
of synthetics, account for about 10 percent
 China is the largest producer of steel in the world and the steel industry
has been rapidly increasing its steel production
 Conclusion
India China
 Back office of the world  Workshop of the world
 Focus on services  Focus on services

 Lower GDP Per capita  GDP per capita higher than

 Strong corporate governance India’s(in USD PPP terms)

 Lack of advanced institutional
standards
infrastructure and corporate
 Advanced institutional
governance
infrastructure  Enjoys wide foreign range
 Commercially driven
reserves
companies  Global economic integration
 Enjoy wide foreign range through international trades and
reserves investments
Thank
you