India's economy grew 8.8 percent in the fiscal first quarter, its best performance since 2007,

Making an in depth study and analysis of India vs. China economy seems to be a very hard task. Both India and China rank among the front runners of global economy and are among the world's most diverse nations.

However, if we try to properly understand the various economic and market trends and features of the countries, we can make a comparison between Indian and Chinese economy.

Going by the basic facts, the economy of China is more developed than that of India. While India is the 12th largest economy in terms of the exchange rates, China occupies the third position. Compared to the estimated $1.209 trillion GDP of India,

If we make the analysis of the India vs. China economy, we can see that there are a number of factors that has made China a better economy than India. First things first, India was under the colonial rule of the British for around 190 years. This drained the country's resources to a great extent and led to huge economic loss. On the other hand, there was no such instance of colonization in China. As such, from the very beginning, the country enjoyed a planned economic model which made it stronger.

Agriculture

Agriculture is another factor of economic comparison of India and China. It forms a major economic sector in both the countries. However, the agricultural sector of China is more developed than that of India. Unlike India, where farmers still use the traditional and old methods of cultivation, the agricultural techniques used in China are very much developed. This leads to better quality and high yield of crops which can be exported.

Agriculture

Farmers work inside a rice field in Andhra Pradesh. India is the second largest producer of rice in the world after China[74] and Andhra Pradesh is the 2nd largest rice producing state in India with West Bengal being the largest.[75]

Main articles: Agriculture in India, Forestry in India, Animal husbandry in India, and Fishing in India

India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging and fishing accounted for 17% of the GDP in 2009, employed 52% of the total workforce[22] and despite a steady decline of its share in the GDP, is still the largest economic sector and plays a significant role in the overall socio-economic development of India.

Liberalization of the market

In spite of being a Socialist country, China started towards the liberalization of its market economy much before India. This strengthened the economy to a great extent. On the other hand, India was very slow in embracing globalization and open market economies. While India's liberalization policies started in the 1990s, China welcomed foreign direct investment and private investment in the mid 1980s.

The Economist concludes that India's economic backwardness has little to do with democracy as such, but has a lot to do with corruption, fiscal mismanagement, a lack of international ambition and a history of over-protection at home.

ConclusionIn contrast to India's neglect of the basic infrastructure, China is investing its surplus in railroad, power, road and water management in a concerted way. There is no question that China still lacks adequate infrastructure, but it has understood clearly the importance of modernizing its basic infrastructure to generate employment and adequate utilization of its vast population.

PREFACE : “China and India, the two largest and fastest growing

economies in the world, are grabbing the attention of the world media. They have long been accepted as the regional super powers and are now perceived as the rising super powers of the world. This project report brings to light some of the similarities and differences between the two countries in term of demography, financial systems and economic environment and takes a look at the long term perspective of their economies.”

INTRODUCTION:

China and India seem to be the hot topics in the world economy today. In the international press, there is

almost an obsession with these two economies, and how their current growth presages the coming "Asian

century". It is not just that they both are countries with large populations covering substantial and diverse

geographical areas, but also with huge economic potential. Most of all they are cited as the current "success

stories"

Two economies in the developing world that have apparently benefited from globalization, with relatively

high and stable rates of growth for more than two decades and substantial diversification.

In India too the obsession with China is now well-developed, mostly in the form of a longing eastern gaze. The

rapid economic growth and structural transformation in China are not just eyed with envy; they are typically

invoked to justify the economic policy of choice. Thus there are those who argue that the recent Chinese

economic success is because of liberalization and openness to foreign trade and investment. By contrast, others

point out that the early Communist history of land reforms and egalitarian policies formed the essential basis

upon which all subsequent

change has depended.

In the outside literature, these economies are often treated as broadly similar in terms of growth potential and

other features, and this even infects some Indian analyses. But in fact there are crucial differences between the

two economies which render such similarities very superficial, and which mean that individual policies cannot

be taken out of context of one country and simply applied in the other to the same effect

The economy of India is the eleventh largest economy in the world by nominal GDP [2] and the fourth largest by purchasing power parity (PPP)

China and India represent the future of Asia – and quite possibly the future for the global economy. Yet both economies now need to fine-tune their development strategies by expanding their economic power

Conclusion:bases. If these mid-course corrections are well executed – and there is good

reason to believe that will be the case – China and India should play an increasingly powerful role in driving the global growth dynamic for years to come. With that role, however, come equally important consequences. IT-enabled globalization has introduced an unexpected complication into the process – a time compression of economic development that has caught the rich industrial world by surprise. The resulting heightened sense of economic insecurity that has stoked an increasingly dangerous protectionist backlash could well pose yet another major challenge to China and India – learning how to live with the consequences of their successes. The Indian government has recently signaled its intention to lift the economy to a higher growth path, whereby GDP would expand at an annual rate of 10 per cent. High growth, according to the government, provides the best antidote to poverty.29 The economic expansion that started in 2003/04 provides evidence that India’s growth rates in favorable circumstances are comparable to Asia’s powerhouse, China. Whereas high domestic demand has increased inflationary pressures in the Indian economy and dragged the current account into deficit, China’s economy has experienced deflationary tendencies that seem to reflect excess supply in the economy. In this regard, investment in infrastructure is imperative to increase the supply-side potential of the Indian economy. It is equally critical to push forward with the economic reforms that have progressed slowly of late, especially in terms of privatization and labor laws. The recent growth in industry is a positive sign of the economic expansion reaching beyond the services sector – a necessary evolution for employment growth and further progress in poverty reduction. An increase in fiscal revenues would provide resources for spending in education, health and infrastructure, without further worsening the delicate state of fiscal balances. A gradual phasing-out of budget subsidies, replaced by direct cash transfers, could also form an important part of fiscal reform.

1. Population2. Economy3. Industry4. Education system5. Environmental consequences6. Growth investments

Indian economy introduction

Chinese economy introduction