India Vs China

INDIA VS CHINA

This scholarly article is basically a comparison and contrast of the political, social and economic conditions of India and China. In today's globally competitive market, both India and China are the two fastest growing and developing Asian countries. We can say this by keeping in mind the economical improvements over the past few years. In order to do the comparative study of both the countries, it is important to consider few areas such as demographics, political procedures, Foreign Direct Investment (FDI), the contribution of foreign assets in different domestic areas and their GDP. GDP will have a great effect on the future position of these two superpowers.

China is a trade based and market oriented country. They earned profits by mass production and with cheap labor. However, this rapid economic growth has caused numerous problems such as health care challenges, environmental pollution, corruption, and unemployment issues for the increasing population. But, China was hit hard in 2008 when the world economy crashed. And now it is difficult for them to maintain their old position as they are unable to work at their full capacity because there is an oversupply of products. With Chinese products not being at high demand, China is losing money quickly and the economy is declining with the rest of the world.

Unlike China, India did not develop into an industry powerhouse as quickly. India was inhabited by Aryan tribes, Arab, Turkic and European. During the age of Aryans, India explored art, science, and culture. Britain assumed political control of most of India in the 19th century. India got Independence from the British Colonialism in 1947. India is filled with diverse cultures and traditions. Indian people still farm, create handicrafts, have a variety of industries, and now have advanced to offer several services. And now, India is focusing on the technological environment and services in the last ten years. But everything comes with a cost. Even India is facing various problems similar to China. Some of them are pollution, corruption, poverty, overpopulation, high oil prices, commodity prices globally, and interest and inflation rates increasing. These problems include Conditions such as high oil prices, commodity prices globally, and interest and inflation rates increasing are causing a decline in India's economy. India's escape from the economies affect on China is due to India being focused on the service and technological industries which have relatively high demand.

REVIEW OF CHINA AND INDIA

China has been a mostly capitalist market based society. It has always been a closed economy and it is in the recent years that it has opened its doors to the MNCs and that to with trust and flexible agreements. China established various restrictions on investment, environmental protection, land, market access, etc. It was the govt. who decides that which sector would be opened for foreign investments. As a result of this, many investors in the Chinese markets were subject to high risks, numerous uncertainties, and unexpected fluctuations in the local and world markets. China mainly focuses on manufacturing products for export with some trends in areas of technology. In an attempt to reform and modernize, China is hoping to be able to pursue new areas in communications that will allow it to be a global political and economical power. Both the current and former leaders of China are in agreement that pursing more technological research and developing more areas of communication and information sectors will help advance the Chinese Communist Party.

On the other hand, in the past, India didn't have the inability to match its own population growth to its economic growth. This is no longer the case, but India is still not that much strong to compete China in the terms of GDP. Many people believe that India will approach the topic of growth by focusing on the individual growth of their internal private businesses. The issue should be regarding what India can do to surpass China as its economical growth begins to slow down due to limited resources and their specific methods and areas of FDI and trade. India's performance in attracting FDI is not up at the same level as China or the rest of Asia. India if frequently considered an underachiever when it comes to the topic of FDI. India is trying to get success in each and every field possible, be it the technological change or the economical change. India is known for being a country that has great size and many different characteristics that have contributed to an impressive annual increased growth amount. India's GDP is part of the fasted growing economical environments in the world.

Further, it is also seen that India is a well established stable democratic institution and its economic improvements indicates that it is advantageous for India to be more open, competitive with MNCs. AS its visible that China's growth is declining due to the decline in exportation of manufactured goods. India's riches does not only lie in the manufacturing business but it is rather expanded in all the sectors like information technology, software, agriculture, etc.

IMPLICATIONS FOR THE FUTURE:

India focuses in the economic growth and hence stresses more on the increase of the country's GDP. It has already invested heavily in the past ten years on the economic growth that now it has become much easier in maintaining trade relationships and establishing competitive advantages. India's strongest area in exceeding China is their focus on service and advancements in technology. India has knowledge and advances in technology that are useful and needed in other countries, especially the United States. Another important advantage of India is the use of the English language. English is the number one spoken language