INDIA VS CHINA
In 1980, the economies of China and India were almost the same in terms of gross domestic product (GDP). India's GDP per capita was, in fact, slightly higher than that China. Then, the Chinese economy grew at an average rate of 10 per cent between 1980 and 2010, leaving India behind. In fact, Chinese manufacturing sector is presently eight times the size of India's.
Points against China / for India:
Better Labour Workforce: According to a leading human resource consultancy giant Manpower Group, the big benefit for India is that it has a much bigger young, literate English speaking relevant workforce, which is more relevant on the global level, as compared to the Chinese young people for instance, whereas, in China, the single child policy in the past, has meant that the country has 400 million less children now. Labour shortage is already fuelling hike in labour costs, putting India into advantage.
Average Worker age: Abut 20 years ago, the average age of a worker in China was 23. That is now the age of the average worker in India today, while the average age of a worker in China has risen to 37. So India’s current young, dynamic, and maybe somewhat undisciplined, workforce is at the same age and in similar numbers to China’s 20 years ago; the very same demographics that propelled China from 11th position in global GDP rankings 20 years ago, to the 2nd spot today behind only the United States.
Communism in China: In China, decision making takes place at the top. There are inevitable frailties in a non-democratic system because mistakes are hard to correct. Poor transparency standards render Chinese economic data suspicious. India’s reporting standards may have issues but the fact is that the data are out there for everyone to see and analyze. It is easier to put out independent data analysis on India and world markets can choose the right data to look at.
Points for China/against India :
Infrastructure Development: When it comes to
Points against China / for India:
Better Labour Workforce: According to a leading human resource consultancy giant Manpower Group, the big benefit for India is that it has a much bigger young, literate English speaking relevant workforce, which is more relevant on the global level, as compared to the Chinese young people for instance, whereas, in China, the single child policy in the past, has meant that the country has 400 million less children now. Labour shortage is already fuelling hike in labour costs, putting India into advantage.
Average Worker age: Abut 20 years ago, the average age of a worker in China was 23. That is now the age of the average worker in India today, while the average age of a worker in China has risen to 37. So India’s current young, dynamic, and maybe somewhat undisciplined, workforce is at the same age and in similar numbers to China’s 20 years ago; the very same demographics that propelled China from 11th position in global GDP rankings 20 years ago, to the 2nd spot today behind only the United States.
Communism in China: In China, decision making takes place at the top. There are inevitable frailties in a non-democratic system because mistakes are hard to correct. Poor transparency standards render Chinese economic data suspicious. India’s reporting standards may have issues but the fact is that the data are out there for everyone to see and analyze. It is easier to put out independent data analysis on India and world markets can choose the right data to look at.
Points for China/against India :
Infrastructure Development: When it comes to