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Comparison of India and China Economy

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Comparison of India and China Economy
A Comparison of Economic Growth in India and China - Lessons to be Learnt

Author: G.Charles Arokia Das
EPGP (2008 – 2010)

Table of Content
1.Purpose of the Study 3
2.Understanding the economic growth model of China 9
2.1.Factors Leading to China’s Success in Manufacturing 12
2.1.1.Preferential Government Policy 12
2.1.2.Foreign Investments 13
2.1.3.Infrastructure Investment 14
2.1.4.Human Capital 15
3.Understand the economic growth model of India 15
3.1.Factors Leading to India’s Success in Services 17
3.1.1.Passive Role of Government 17
3.1.2.English 18
3.1.3.Education 18
3.1.4.Entrepreneurship 19
3.2.Lessons for China from Indian Services Success Story 20
4.Shortcoming of Indian Economy compared to China 20
4.1.Problems of skipping the Industrial revolution 21
4.2.GR-2-SER (Green Revolution – II to Services) 24
4.2.1.Advantages 25
4.2.2.Disadvantages 25
4.2.3.Green Revolution – 2 26
4.3.GR-2-MAN-2-SER (Green revolution to manufacturing to Services) 27
4.3.1.Advantages: 28
4.3.2.Government policies 28
4.4.GR-2-MAN-SER (Green revolution – II to Manufacturing and Services): 29
4.4.1.Advantages 29
4.4.2.Government policies 30
5.Conclusion 30

Abbreviations

BPO
Business process outsourcing
GDP
Gross Domestic Product
FDI
Foreign Direct Investment
IT
Information Technology
1.Purpose of the Study
There are a lot of common factors between India and China, similarly there is a large number of factors which are completely diverse in nature between these 2 countries. The basic intention of this comparative study is to first understand how differently the 2 countries have progressed and what are the factors that contributed for their growth and which of these can be used by the other to further vault the growth rate of each of these 2 great countries. Before comparing let us understand the position of these 2 countries and where they are currently placed in terms of the GDP, distribution of GDP among the 3 main

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