Posted in Finance Articles, Total Reads: 3738
, Published on 16 February 2012
Long ago the soil in which I currently stay was ruled by the rajputs. Like all countries, India, being a nation of lovely habitat, prosperity, peace and simplicity attracted eagle eyes across the world. What followed was an invasion, from Mohammad Ghori to British rulers and now to bureaucrats. Over the decades of plunder, we have lost our precious assets(such as Kohinoor diamond, treasuries and most importantly faith in rulers). Yet we continue to take pride in recall a environment which fosters diversity. Tiger, as we are represented by, signifies symbol of power and strength. We vouch for peace and believe in unity.
On the same note one of our cousin in eastern localities endured similar challenging note after being dictated by rulers such as Genghis Khan to Mao Zedong. Today, they form one of the central hubs to which manufacturing tasks are outsourced. Thanks to their system, the phrase ‘violation of law’ has ceased to exist. Welcome to the land of rising sun: China now referred as People Republic of China. From diplomacy to industrialization, China emerges to be one of the biggest power players on earth today. The dragon, as symbolized in the national flag, represents power, strength, and good luck.
So, in a head to head battle between the two mammoths, we take a look at where these two nations stand today vis-à-vis other.
During 1960’s the GDP of both nations were on similar lines. Today, China’s GDP is pegged to be 5.88 trillion US dollars in contrast to 1.73 trillion US dollar GDP of India. As expected, China’s wallet turns out to be fatter than India’s. Since the arrival of new millennium we have been hearing that India’s GDP would surpass that of China’s in next 30-50 years. But the reality depicts a different story. On the contrary our eastern cousins look to take away more money than us.
While China saw influx of foreign currency since 1980’s, it took a brave attempt from Manmohan Singh to open the gates to foreign investors through liberalization in 1990s. From IT Industry in India to manufacturing in China, we resemble the genes of being the nations to get assignments. The booms and dips in the global economic cycle affected both of on an equal degree. From dot com bubble to subprime crisis, both India and China have battled to keep their cash ticking, with China making the last smart move by devaluing its currency. While foreign investors(for instance Google) have slowly backed out of China, the recent FDI fiasco in the nation has kept experts wondering when would the time arrive for nation to act. While the FDI’s of both nations are fluctuating, our eastern cousins off late had growth in FDI.
While China continues its reign of communism, India is governed by diverse opinions. On one hand where the activity of people in the land of sun are monitored and unrest meets with immediate quash, people in India continue to voice their concern by the virtue of preamble. However, when it comes to average life expectancy, China turns out to be healthier than India.
The rich are getting richer and the poor turning poorer. Traffic congestion in the nation gets escalated every-day with the surge in number of vehicles. If China responds to the challenge with robust infrastructures, India turns up the head with “work in progress” tags hanging every nook and corner. Result? While China continues to cater to more automobiles, India continues to be frustrated. Notably to reduce the panic button of debt, we had sold the carbon footprints to world way back. This has curtailed our efforts to house more industries. China on other hand continues to upgrades its villages to industries. Underlying the latter statement CO2 emissions depicts this picture.
Long back, we had realized the vision of agriculture as being the integral part of nation’s GDP. With the progress, all forest continued to be cleaned up and agricultural land was acquired to raise Industries.
Unfortunately, agriculture today finishes last in the contribution to GDP and is overhauled by service and manufacturing sectors. Thankfully we are ahead of our cousins in this aspect.
The big fight of tiger Vs dragon: Who will clinch the battle?
On an overall scale China turns out stronger in 3I’s(i.e. Income, Infrastructure and Industrialization), India turns out happier in providing a conducive environment for citizens, scope for corporate institutes to rise and diverse culture. It is interesting to note if India responds to the challenge of growth poised by China. The ’30-50’ years time frame(as mentioned commonly in the speeches and discourses today) should be good enough to provide the answer.