The Difference between China and India's economies

The main difference between China and India's economies is that one is export driven, and the other demand driven. China, a well known country for it's exports focuses it's economy to produce goods to sell to the world market. This differs from the Indian economy which is demand driven, because it runs on the basis of demand and to fulfill the needs of people.

http://in.answers.yahoo.com/question/index?qid=20110310025822AA34I1d

Here is an interesting table containing the facts about both India and China. 

Facts	India	China
GDP	around $1.3123 trillion	around 4909.28 billion
GDP growth	8.90%	9.60%
Per capital GDP	$1124	$7,518
Inflation	7.48 %	5.1%
Labor Force	467 million	813.5 million
Unemployment	9.4 %	4.20 %
Fiscal Deficit	5.5%	21.5%
Foreign Direct Investment	$5.47 billion	$9.7 billion
Gold Reserves	15%	11%
Foreign Exchange Reserves	$2.41 billion	$2.65 trillion
World Prosperity Index	88Th Position	58th Position
Mobile Users	842 million	687.71 million
Internet Users	123.16 million	81 million.

http://business.mapsofindia.com/india-economy/india-vs-china.html


Industrialization:


China:

• China adopted Soviet Russia's economic policies of five year plans. 
• The first five year plan lasted from 1953-57. 
• Because China was an agricultural driven economy with the majority of it's workforce in the agricultural sector. 
• China wanted to industrialize hence the 5 year plans. 
• In 1985 China's industrial sector employed about 17 percent of the labour force, but due to higher productivity than the agricultural sector, accounted for over 46 percent of national income. 
• The chinese made remarkable technological progress in some areas, including nuclear weaponry, satellites, and computers; but overall the industrial sector lagged far behind that of developed countries. 
• Industrialization has benefitted the Chinese economy as it has prompted an exponential increase in infastructure, as steel from heavy industry has helped with the building of houses, towns and cities.  

India:

• Indian Industry accounts for 28% of the GDP and employs 14% of the total workforce. 
• India is 12th in the world in terms of nominal factory output. 

Other Interesting facts:

China:

• Facts about China 
• There is 1.3 Billion people in China.
• China is the oldest civilisation on Earth.
• Currently the second largest economy behind the United States.
• It will take 30 years before we need a new planet Earth to satify China's economic consumption of raw materials.
• Until 1978, the Communist party controlled all of China's land.
• There was a 1500% increase in peasant income when the land was privatised.
• The GDP of the country is $4.99 Trillion.
• There is roughly 10 billion dollars being poured into Shanghai each year.

India:

• The population of India is 1,210,193,422.
• India's capital is New Delhi.
• It is the seventh largest country in the world.
• India is mainly an agricultural country, though it also has a large iron and steel industry and produces every type of manufactured goods.
• The GDP of the country is  $1.38 Trillion.

How has China built relations with African and South American countries?

Modern Sino-African relations between China and the African continent began in the 1950's when China signed a trade agreement with Algeria, Egypt, Guinea, Morocco and Sudan. Over time, the trading between China and African countries flourished, and
in 1999, the total Sino-African trade volume was US$6.5 billion. However, by 2005, the total Sino-African trade had reached US$39.7 billion, and in 2006 it jumped to US$55 billion. Africa provides 1/3 of Chinese oil supplies, prompting a lot of Chinese investment in the energy sector in recent years.

http://en.wikipedia.org/wiki/Sino-African_relations

 Here is the geographical location of China and the continent of Africa.

Key points:

- Modern Sino-African relations began in 1950's.

- Relations have flourished due to trade.

- Africa provides 1/3 of Chinese oil supplies.

- This has prompted a lot of Chinese investment in the energy sector in recent years. 

Facts about India and Liberalisation

The liberalisation of India began with economic reforms in 1991. This liberalisation refers to:

• The opening for international trade and investment
• Deregulation
• Initiation of privatisation
• Tax reform
• Inflation controlling methods.

http://reason.com/blog/2009/02/23/recently-at-reasontv-what-slum

This is an interesting link which shows us that around 300 Million Indian civillians escaped poverty, due to the ongoing economic reforms which the Indian government has brought about.


https://www.cia.gov/library/publications/the-world-factbook/geos/in.html#Econ

The CIA has published information on the Indian economy; the link above shows us since 1997, the annual average growth of India is around 7%, just behind that of The People's Republic of China. Despite half of the workforce being in agriculture, services are the main ouput and is a source of their economic growth. Due to a large amount of English speaking workers, the Indian economy capitalised on this, which has enabled them to provide things such as IT services to people in England.

Facts about China and India

China:

• Facts about China 
• There is 1.3 Billion people in China.
• China is the oldest civilisation on Earth.
• Currently the second largest economy behind the United States.
• It will take 30 years before we need a new planet Earth to satify China's economic consumption of raw materials.
• Until 1978, the Communist party controlled all of China's land.
• There was a 1500% increase in peasant income when the land was privatised.
• The GDP of the country is $4.99 Trillion.
• There is roughly 10 billion dollars being poured into Shanghai each year.

India:

• The population of India is 1,210,193,422.
• India's capital is New Delhi.
• It is the seventh largest country in the world.
• India is mainly an agricultural country, though it also has a large iron and steel industry and produces every type of manufactured goods.
• The GDP of the country is  $1.38 Trillion.

What caused China's rapid industrialisation?

In 1978 China began economic reforms to create a greater and self sufficient economy. From 1978 to 2006,  China's real GDP or Gross Domestic Product grew at an average rate of 9.7%. This came from rapid industrialisation, which was caused for a few reasons. Firstly, because China enforced a idea of a centrally planned economy. Because the economy was centrally planned, nearly all of the country's economic output was directly controlled by the state. However, this changed after the economic reforms in 1978, and there were significant gains in production by enterprises and privately own businesses. The rapid industrialisation was helped by being funded by local governments and foreign investors, despite the state still accounting for 46% of China's industrial output.

Sources:

http://forum.pakistanidefence.com/index.php?showtopic=93669    

http://en.wikipedia.org/wiki/Industry_of_the_People%27s_Republic_of_China                                                                                                         

The Chinese Car Industry

Chang'an Avenue in Beijing. 

Since 2009, China has had the biggest car industry in the world. Last year, in 2010, China produced 18.06 Million automobiles, another impressive feat which the People's Republic of China has managed. There has been numerous joint ventures with foreign firms such as Volkswagen, Mitsubishi, General Motors and Hyundai. It is reported that the number of registered automobiles in china has reached 62 million in 2009, and is expected to reach 200 million by 2020. This is evidence of the exponential growth of the Chinese Car market. 

Some of the popular Chinese automobile brands are:

-BYD.

-Lifan.

-Geely.

-Great Wall.

-Roewe.

Below is an interesting link about when the Chinese Car market surpassed the United States.

http://news.bbc.co.uk/1/hi/business/7879372.stm

The above link state that a total of 735,000 automobiles were sold in China last month, which is once again another staggering feat from the Chinese economy. It also state that that China has the fastest growing car market and that it has experienced sales growth of over 20% per year for three years.

The Lifan Group is a Chinese car manafacturer operating out of Chongqing. In 2009, the company was the 88th largest in China. The firm is privately owned and operates in the market of small passenger cars and Sedans.

http://en.wikipedia.org/wiki/Lifan_Group

Here is the link to the Lifan car website:

http://www.lifan.com/English/

Can China outgrow America?

Due to China's growth being at 10% per annum, it is almost inevitable that the size of the Chinese economy will surpass the economy of the United States. Below is an interesting video which features an economist speaking about the forthcoming rise of China.

Here is an interesting article which states that the Chinese Economy will outstrip that of America earlier than we expected, around 2016.

http://english.aljazeera.net/indepth/opinion/2011/06/201163101514344488.html

Key Points:

- China's growth at 10% per annum.
- It is almost inevitable that the size of the Chinese Economy will surpass the economy of the US.
- China will outstrip the American economy around 2016.

China's GDP and Annual Growth

Gross domestic product (GDP) is "The market value of all final goods and services produced within a country in a given period".

China's GDP is currently recorded at an astonishing $5.88 trillion by 2010 List by the International Monetary Fund. This is just one position behind the United States of America which has a Gross Domestic Product of $14.7 trillion dollars. It is right to say that it is almost inevitable that China will soon surpass the United States in terms of GDP. The People's Republic of China's Growth is even more staggering than it's GDP, and has an average growth of 10% for the past 30 years.

http://www.imf.org/external/index.htm

Here is an image in reference to China, India and The United States' Gross Domestic Product. 

Why is the Chinese Economy growing so fast?

There are a number of reasons as to why the Chinese Economy is growing so fast. The main reason is firstly due to them being a socialist country. Because of socialist ideology, China adopted a command economic system which is where the state directs what gets produced and how to produce it. Although, as of late, China has started to drift more towards a transitional economy, as they have started to liberalise some sectors that have prompted individuals to make decisions on the basis of supply and demand, rather than central planners that dictate as to what gets produced. This has enabled more room for growth as businesses would now be providing what is demanded by consumers, thus allowing them to create more of a profit. After China liberalised it's state control, the country's growth has been exponential.

  

 

China has now started to invest huge sums of money into other countries. This would enable them to grow because they would now be recieving even greater amounts of money due to their previous investments and the interest they would recieve. The graph above indicates to us that as of late, China has now invested colossal amounts into foreign countries.Secondly, China invested in industrial production and the education of it's own workforce, which has allowed them to become much more efficient.

 

Here is a Youtube video which says that China has increased it's population by 74 Million people in 10 years, which is an extremely impressive feat. This has enabled China's growth to increase speedily, as it's workforce would now be getting greater and greater. With a greater workforce, a larger amount of goods could be both produced and consumed.

China's Population Facts

It is widely understood that People's Republic of China have the largest population, however what is interesting is that their population makes up nearly 20% of the worlds population. The 2010 China Census reports that there is 1,339,724,852 persons in China, totaling 19.35% of the worlds people. Due to so many people living in China, they are enforcing a One-Child policy which restricts families to only having one child.  

http://www.stats.gov.cn/english/newsandcomingevents/t20110428_402722237.htm

Here above is an image which shows the population density of China. It is evident that in the East and South East the population is much more dense. To the west and south west the it is evident that it is much more remote due to the lower amounts of people residing in the area. In some regions, the density is around 520 people per square mile, which is an extremely interesting result as there seems to be so many people living in such a small area.

Introduction on India and China's economies

Here is a blog which is dedicated to my research on the exponential improvement of the Chinese and Indian economies.