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INDIA
Capital city Total area New Delhi 3,287,590 sq km
CHINA
Beijing 9,596,960 sq km
Population
Population growth rate Literacy rate Government type Currency
Source: CIA World Fact book
1,147,995,904
1.578% 61% Federal Republic 1 Yuan = US $ 6.9385
1,330,044,544
0.629% 92.2% Communist State 1 Rupee = US $ 54.77
Economic Indicators
Economic Indicators China India USA
$4.22 trillion
$1.237 trillion
$14.33 trillion
$6,100
$2,900
$48,000
GDP composition
Forex Reserves
$2.033 trillion
$274.2 billion
$70.57 billion
Exports
Imports
Public Debt
Labor Force
807.7 million
523.5 million
155.2 million
Oil production
3.725 mn bbl/day
880,500 bbl/day
8.457 mn bbl/day
Oil Exports
399,000 bbl/day
450,700 bbl/day
1.165 mn bbl/day
Oil Imports
4.21 mn bbl/day
2.159 mn bbl/day
13.71 mn bbl/day
Part 2
Infrastructure
Infrastructure Overview
China India USA
Roadways
1,930,544 km
3,316,452 km
6,465,799 km
Railways
75,438 km
63,221 km
226,612 km
Waterways
110,000 km
14,500 km
41,009 km
No. of Airports
467
346
14,947
No Indian port features among the top 20.The Jawaharlal Nehru Port in Navi Mumbai is the largest container port of India. It handled 1.5 mn TEUs in 2007-08.
Steel
Coal Electricity
Steel
Production in million metric tonnes
Country China Japan United States Russia India South Korea Germany Ukraine Brazil Italy Rank 1 2 3 4 5 6 7 8 9 10 2008 502.0 118.7 91.5 68.5 55.1 53.5 45.8 37.1 33.7 30.5 2007 489.2 120.2 98.2 72.4 53.1 51.5 48.6 42.8 33.8 31.5 % 08/07 2.6 -1.2 -6.8 -5.4 3.7 3.8 -5.6 -13.4 -0.2 -3.4
China
India Australia South Africa Ukraine Kazakhstan Poland Brazil
3
4 5 6 7 8 9 10
114,500
92,445 78,500 48,750 34,153 31,279 14,000 10,113
12.6
10.2 8.6 5.4 3.8 3.4 1.5 1.1
Poland
Kazakhstan
8
9
90
83
Russia
India Brazil UK South Africa
4
5 6 7 8
1.016 tr KWH
665.3 bn KWH 437.3 bn KWH 371 bn KWH 264 bn KWH
Part 3
Automobile
USA
China Germany South Korea France Spain Brazil Canada Mexico India
2
3 4 5 6 7 8 9 10 11
10.5
8.1 6 4 2-3 2-3 2-3 2-3 2-3 1.95
Rs 2135.7 mn
Rs 3934 mn
Tata Motors
Rs -263.26 cr
98,760
Rs 499.05 cr
144,608
Toyota
- $ 1.8 bn
1,840,000
$ 4.58 bn
2,283,000
GM
-$ 2.5 bn
2,100,000
- $ 39 bn
2,359,551
Ford
-$ 129 mn
1,174,000
-$ 380 mn
1,487,000
This reflects the dominant position of the Volkswagen group in the passenger vehicle market of China. Other prominent manufacturers in China are Geely Automobile and Guangzhou Toyota.
This was the first time that the number of cars sold in China surpassed the number of cars sold in USA.
Some Facts
INDIA
Total Geographical Area 3,287,590 sq km
Arable land: 48.83% Major Crop Production Rice 136.5 mn tonnes Wheat- 78 mn tonnes Sugarcane - 355 mn tonnes
CHINA
Total Geographical Area 9,596,960 sq km
Arable land: 14.86% Major Crop Production Rice - 182 mn tonnes Wheat 96.2 mn tonnes Sugarcane 106 mn tonnes
Increase spending on agriculture by over 20 percent in last 3 years. Arable land loss due to deforestation. OPPORTUNITIES THREATS Potential to increase grain output Severe droughts- hit by the worst in 50 yrs recently (N.China). Organic farming. Water level in dams lowered.
China
Securities industry: China Securities Regulatory Commission (CSRC) Insurance industry: China Insurance Regulatory Commission (CIRC)
Shifted from a tight monetary policy implemented in early 2008 to a moderately easy one as the international financial turmoil spread in the later half of the year Enhancing financial support to maintain economic growth.
The latest interest rate cut brought the one-year lending rate to 5.31% and the one-year deposit rate to 2.25%. (9th march, dow jones business news) Bank cut its reserve ratio after repeatedly increasing it in 2007 and early 2008. To offer more loans to smaller enterprises.(6th march, reuters)
SKILLED LABOUR
HOMEGROWN ENTREPRENEURSHIP
HIGH LEVEL INFRASTRUCTURE, (RELIABLE/SATELLITE TELECOMMUNICATIO N) AVAILABILITY OF FAST DIGITAL TELECOMMUNICATIO N LINKS
INTERNAL ENTREPRENEURSHIP
HIGH COMPETITION
FACTORS
DEMAND
DIRECT INVESTMENT
GROWING COMPETITION BETWEEN , INDIGENOUS FIRMS, AND GLOBAL MULTINATIONALS LARGE NUMBER OF STATE OWNED INDUSTRIES MASS PRODUCTION BASED ON ECONOMY OF SCALE
EXTERNAL DEMAND
CHINA before
Socialist economic system State-owned domestic enterprises Strict control
INDIA now
State planning through 5 Year Plan Reduced control on foreign trade and investment Privatization trend
CHINA now
3 Step Development Strategy Government supervision through indirect guidance of a more dynamic economy Many institutions to control and supervise
(People's Bank of China, National Development and Reform Commission, Ministry of Finance)
Published studies
Last year, the Forbes 200, an annual ranking of the worlds best small companies, included 13 Indian firms but just 4 from mainland China.
A report issued in 2000 by the Chinese Academy of Social Sciences concluded that, private and individual enterprises have a lower political status and are discriminated against several policies and regulations.
In a recent survey of leading Asian companies by the Far Eastern Economic Review (FEER), India registered a higher average score than any other country in the region, including China. In a World Bank study published last year, only 52 percent of the Indian firms surveyed reported problems obtaining capital, versus 80 percent of the Chinese companies polled. As measured by exports/GDP ratio, China was already more open than India in 1982.
Why?
1. Its the history; Indias economic reforms only began in 1991, more than a decade after China. 2. India has had to deal with a national savings rate half that of Chinas and lesser FDI. 3. Moreover, India is an extensive, messy democracy driven by ethnic and religious tensions. 4. Indias over-regulated labour market 5. India has also had a longstanding, volatile dispute with Pakistan over Kashmir. China, on the other hand, has enjoyed two decades of relative tranquility, it has been able to focus almost exclusively on economic development.
Comparing India and China, India is doing a superior job in utilizing their resources and exploiting the institutional advantages.
China and India have pursued different development strategies. China used the fastest route to reach economic development which is foreign direct investment (FDI). Indeed, Indias homegrown entrepreneurs may give it a long-term advantage over the Chinese inefficient financial system and capital market. Indias strategy may enable it to catch up with and perhaps even overtake China.
Rapidly growing India and China are windows of opportunities for each other. Huge potential in bilateral trade, linking 1/3 rd of humanity
China location, culture and human resources can provide India a springboard to enter Japanese and Korean markets.
Leverage Indian technology and management in conjunction with Chinese low cost labor and excellent infrastructure.
Trade facilitation
Reduce shipping and container costs Move towards EDI (Electronic Data Interface) in customs administration Mutual Recognition Agreements on standards Bilateral agreement on investment with investor protection . Use MIGA best practices as both members of MIGA
Thank You