A GDP Comparison of India and China
A GDP comparison of India and China
China and India are the two giant’s economies of Asia, which are now regarded as the “success stories” for their massive economic development for the past two decades. On their way to economic growth they have more dissimilarities than similarities. The most common things among them are their ancient civilizations, population, covering substantial geographical areas and developing economies of the world. They both apparently benefited from globalization as well sound macro-economic policies. But on the other side they have different socio-economic-political set ups they had followed different development strategies. China followed the socialistic pattern from the very beginning; India resorted for “mixed-economy” for economic growth. In this paper I would like to discuss how China outpaced India in their economic growth even though both started their journey over same period of time. A brief analysis on their GDP’s, inflation, unemployment and foreign exchange reserves, as well how the global recession had affected their economies.
Introduction
China:
China started its economic reforms in 1958 when Mao broke with the soviet model and announced the “Great Leap Forward”, which aimed at rapidly increasing industrial and agricultural production. But its economic growth rapidly changed with its market-oriented reforms when it opened its arms to the world in 1979.Today Chinese population is about one-fifth of the worlds and its GDP contribution is about 10 percent of the world’s total, making it to be the third largest economy in the world in 2009. But latest sources tell us that China is second next to United States in GDP surpassing Japan. GDP of China at the end of third quarter is 9.6 percent. China’s GDP reached its peak during 2007 with 14.2 percent and was not affected much during the global recession. (U.S. Department of State, 2010)
The major factors influencing China’s economic growth is exports. Exports of goods and
China and India are the two giant’s economies of Asia, which are now regarded as the “success stories” for their massive economic development for the past two decades. On their way to economic growth they have more dissimilarities than similarities. The most common things among them are their ancient civilizations, population, covering substantial geographical areas and developing economies of the world. They both apparently benefited from globalization as well sound macro-economic policies. But on the other side they have different socio-economic-political set ups they had followed different development strategies. China followed the socialistic pattern from the very beginning; India resorted for “mixed-economy” for economic growth. In this paper I would like to discuss how China outpaced India in their economic growth even though both started their journey over same period of time. A brief analysis on their GDP’s, inflation, unemployment and foreign exchange reserves, as well how the global recession had affected their economies.
Introduction
China:
China started its economic reforms in 1958 when Mao broke with the soviet model and announced the “Great Leap Forward”, which aimed at rapidly increasing industrial and agricultural production. But its economic growth rapidly changed with its market-oriented reforms when it opened its arms to the world in 1979.Today Chinese population is about one-fifth of the worlds and its GDP contribution is about 10 percent of the world’s total, making it to be the third largest economy in the world in 2009. But latest sources tell us that China is second next to United States in GDP surpassing Japan. GDP of China at the end of third quarter is 9.6 percent. China’s GDP reached its peak during 2007 with 14.2 percent and was not affected much during the global recession. (U.S. Department of State, 2010)
The major factors influencing China’s economic growth is exports. Exports of goods and