Route to 2030
By
Hashmeet Kaur
MFM Sem I
Economic Comparison :
Basis
India
China
China has made only marginal
progress toward rebalancing goals.
The new government of President
XI Jinping has signalled a greater
willingness to undertake reforms
that focus on China's long-term
economic health.
Household Income
Consumption
Labor Force
487.3 million
Imports
$467.5 billion
$1.95 trillion
Debt - External
$412.2 billion
$863.2 billion
Demographic Comparison :
Basis
India
China
Age Structure
Literacy
Education Expenditure
3.2% of GDP
Not Accounted
Urbanization
Health Expenditure
3.9% of GDP
5.2% of GDP
Median Age
27 years
36.7 years
Description
Inflation
Poor Infrastructure
Indian public services are creaking under the strain of bureaucracy and
inefficiency
BOP Deterioration
Firms employing more than 100 people cannot fire workers without
government permission. The effect of this is to discourage firms from
expanding to over 100 people.
Inefficient Agriculture
Description
Population as an Asset
1.2 Billion and counting , more human capital and more consumers.
Positive Liberalization
Economic Reforms
Improved Urbanization
The emergence of satellite towns for example for Delhi the National
Capital Region that includes Noida, Gurgaon, Ghaziabad, Faridabad.
Positive Democratic
Sentiment
Entrepreneurial Mindset
More than 12 million start ups in India. Leading to more FDI Inflow
and increase awareness.
SMEs
Description
Average industrial
concentration
Issue of Agriculture
China's GDP
Might increase temporarily, but employment, tax and wage per GDP unit
will decrease continuously
Foreign capital
To indicate how China's economy relies on foreign capital and markets, the
ratio of the sum of export and import to GDP rose to 46% in 2010.
Deflation crisis
Description
Labor Force
Unemployment Rate
Budget
Exports
Concluding Analysis :
According to the data, it is evident that as the India
heads towards 2030 it will eventually overtake Chinese
Economy as supported by positive demographics and
rising economic indicators.
Military
Comparison :
Working Age
Comparison :
Conclusion
According to UNPD, India will overtake China in 2030 because of
Demographic, Economic and Political Reforms welling in India .
CONCLUSION
India and China are the two fastest emerging economies
among the major global players.
Both nations have shown remarkable development after
liberalization.
Bilateral trade between these two super nations is one the
important aspects. The bilateral trade has grown
remarkably in the last years.
Today China is being recognized as Indias largest trading
partner and has become one of the top three trading
partners of India whereas India has reserved its place
among the top ten trading partners of China.