Factors driving economic growth of india and china

China will have the largest impact on Asia and the Pacific region because China's economy is two-and-a-half times larger than that of India, it is growing faster and it is more integrated with the rest of the world.

Comparison between india and china development

India is projected to continue its current role as a major net exporter of rice. Here surplus labour from the traditional agricultural sector has shifted to the progressive industrial sector, thus promoting industrialization. Both the Chinese and Indian government have made clear that they have deliberately taken the decision to increase state investment in order to stimulate economic growth, while in the U. Given the present global conditions, the damage would likely to be particularly rapid and severe. This economic reality is crucial for China's practical economic policy as the country seeks to achieve its goal of a " moderately prosperous society " by and a "high income economy" by World Bank standards shortly thereafter. Consequently, they adopted significant policy reforms focused in particular on the production of cereal grains, and concomitantly, the goal of foodgrain self-sufficiency that has shaped Indian agricultural policy ever since Gulati et al. Second, industrial policy has been at the heart of development policies and strategies in developing countries, although not particularly so in India. Chinese state and private investment percent change year to year: CEIBS India, the other rapidly growing major economy, shows the same pattern as China. In mature economies we can point to the balance between the two. Large-scale collaborative education and training ventures are found in all major Chinese centres.

China still looks with horror on this rapid disintegration and has acted early enough to ensure that all but the most strategically sensitive industries are now to most intents and purposes private operations. Economic success China requires both the 'invisible hand' and the 'visible hand.

Why chinas economy is better than india

India has broken away from the "Washington Consensus" of "state bad, private good" to use state investment as the driving force of its economic development. This is to ensure that high rates of economic growth can continue, driven increasingly by consumption relative to investment and based on more efficient resource utilisation. The coastal areas benefited from growth in agricultural exports, whereas central China, the largest producer of soybeans and edible oils, was hurt by trade liberalization. Starting with the education of a top class of Chinese managers abroad — principally in the United States of America and Europe — and continuing with a similar programme of training trainers, one now finds replicas of top management development programmes in China ranging across many sectors of the economy. The projections for both economies indicate that food security can be maintained at a national level without resorting to significant imports. However, the greatest increase in productivity occurred in the s and s and the greatest decrease in poverty in the s and s. Overall economic growth as measured by per capita GDP has been a primary source of rural poverty reduction in China. Consumption of aquatic products also showed very rapid growth. It should be noted that these growth projections apply to two economies of considerably different size. It is not enough to have the best qualified technical people in the business available at relatively low cost if the business cannot achieve fast response times and quick decision-making. The unparalleled performance of China and India and their influence on the world economy, has been larger and faster than implied in earlier research.

The key question in the case of India is different. In India as in China, the agricultural economy is undergoing structural changes.

india vs china economy

Proximity to inputs within the city has a positive impact on firm location. The average annual growth rate for the decade to was 6.

are india and china developing countries

Their recent rapid development therefore has implications for their domestic policy issues, particularly rural poverty, inequitable wealth distribution, natural resource management and sustainability.

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Learning from the Southern Giants: China and India