India vs. China EconomyPresented By:Team 1 Abhishek Kumar Jaspreet kaur Khushboo Gulati Richa Garg Yogesh Grover

India and China Emerging Global Playersy High economic growth rate y

apid raising share in world

y Large inflows of FDI

GeographicalIndiay Seventh largest y Total area 32, 263 sq kms y Cities: Capital- New Delhi.

China Third Largest Total area: 9,596,961 sq. km. Cities: Capital-Beijing. Other major

Other major cities-Mumbai, Delhi, cities--Shanghai, Tianjin, Shenyang, olkota, Banglore, Hyderabad. Wuhan, uangzhou, Chongqing, y Terrain: Upland plain (Deccan Harbin, Chengdu. Plateau) in south, flat to rolling Terrain: Plains, deltas, and hills in plain along the anges, deserts in east; mountains, high plateaus, western region of India, deserts in west. Himalayas in northern region. Climate: Tropical in south to y Climate:The Tropical monsoon subarctic in north. in south India to temperate in Source:www.india.gov.in north India www.china.gov.in

DemographicsIndiay Population:1,173,108,018(2010 est.) y Age structure y 0-14 ears: 30.5% y 15-64 ears: 64.3% y 65 ears and over: 5.2% y Population growth rate: 1.376% (2010

Chinay Population (Jul 2010 est.): y

est.) y Birth rate: 21.34 births/1,000 population (2010 est.)y Death rate: 7.53 deaths/1,000 population

y y y y

(July 2010 est.) y Net migration rate: 0.05 migrant(s)/1,000 population (2010 est.)

1,330,141,295. Age structure 0-14 ears: 19.8% 15-64 ears: 72.1% 65 ears and over: 8.1% Population growth rate (2010 est.): 0.494%. Birth rate:12.17 births/1,000 population (2010 est.) Death rate: 6.89 deaths/1,000 population (July 2010 est.) Net migration rate: 0.34 migrant(s)/1,000 population (2010 est.)

Contd.

Indiay Urbanization

Chinay Urbanization

urban population: 29% (2008) rate of urbanization: 2.4% (2005-10 est.)y Sex ratio:1.08 male(s)/female

urban population: 43% (2008) rate of urbanization: 2.7% (2005-10 est.)y Sex ratio:1.06 male(s)/female

(2010 est.) y Infant mortalit rate: 49.13 deaths/1,000 live births y Life expectancy at birth: 66.46 years y Literacy: 71%

(2010 est.) y Infant mortality rate: 16.51 deaths/1,000 live births y Life expectancy at birth: 74.51 years (2010 est.) y Literacy: 91.6%

Source: indexmundi.com

THE LEGACY OF THE ONE CHILD POLICYy 1979 y Few children to support a rapidly aging

population y The era of cheap, young Chinese labor is over y rapidly aging population

Socio-Culturaly Nationality y Ethnic groups y Religions y Languages

PoliticalINDIAy y y y y y y y y y

CHINAy y y y y y y y y y

Country Name Republic Of India. Govt.Type Federal Republic. Capital New Delhi. Administrative Division 28 States & 7 UnionTerritories. Independence 15th ug. 1947. Constitution 26th Jan. 1950. Govt. Power Executive, Judiciary & Legislative. Legal system Based on English common law. Suffrage 18 yrs. Political Parties ND & UP .

Country Name Peoples Republic Of China. Govt.Type Communist State. Capital Beijing. Administrative Division 23 Provinces, 5 Autonomous Region, & 4 Municipalities. Independence 221 BC, 1st Jan. 1912 & 1 Oct. 1949. Constitution 4 Dec. 1982. Govt. Power - Executive, Judiciary & Legislative . Legal System Based on Civil law system. Suffrage 18 yrs. Political Parties CCP.

Infrastructure and TechnologyINDIAy Road Total length 30 lakh km (both

CHINAy Road Total length 2.9 million km y Rail Total length 91000 km y Shipping 4200 km (2600 km in

metalled & unmetalled).y Rail Total length 63000 km (including

13000 km electrified).y Shipping 90% trade through sea, total

Himalayan boarder), total income US$100 bn.y Aviation Total turnover US $13.1 bn. y Telecom 1.2 billion, total income $56.9

income 64bn.y Major

ports Kolkata, Mumbai, Chennai, Goa, Cochin &Vishakhapatnam.

bn.y Internet 420 million

y Aviation US $9 bn. turnover in 2010,

total no. of passenger 3.67 million, annual growth 9-10%.y Telecom 800 million subscriber in

2010, total income $19.50 bn.y Internet - 53 million

Economic IndicatorsIndiay Rank 11th (nominal) / 4th (PPP) y Currency Indian Rupee (INR)=100

Chinay Rank 2nd (nominal) / 2nd (PPP) y Currency Renminbi (RMB); Unit:

Paise y Fiscal year Calendar year (1 April 31 March) y Trade organizationsWTO, SAFTA, G20 and others y GDP $1.43 trillion (nominal: 11th; 2010) $4.00 trillion (PPP: 4th; 2010)y GDP growth 8.9% (2010, Q2) y GDP per capita$1,176 (nominal: 137th;

uan (CN )y Fiscal year Calendar year 01 January

to 31 December y Trade organizationsWTO, APEC, G-20 and others Statistics y GDP $5.88 trillion (nominal: 2nd; 2010),$10.08 trillion (PPP: 2nd; 2010) y GDP growth 10.3% (1st; 2010)y GDP per capita $3,735 (nominal:

2010) ,$3,290 (PPP: 127th; 2010) y GDP by sector services (57%), industry (28%), agriculture (15%) (200910)

97th; 2009), $7,518 (PPP: 93th; 2010) y GDP by sector industry (46.8%), services (42.6%), agriculture (10.6%) (2009)

Contd.

Indiay Inflation (CPI) 8.43% (December y y y

Chinay Inflation (CPI) 5.1% (November 2010) y Gini index 46.9 (List of countries) y Labour force 813.5 million (1st; 2009) y Labour forceby occupation agriculture

y y

y

2010) Gini index 36.8 (List of countries) Labour force 478 million (2nd; 2009) Labour force by occupation agriculture (52%), industry (14%), services (34%) (2009 est.) Unemployment 9.4% (200910) Main industries Information Technology , telecommunications, textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticals Ease of Doing Business Rank 134th

(39.5%), industry (27.2%), services (33.2%) (2008) y Unemployment 4.2% (July 2010) y Main industries mining and ore processing, iron, steel, aluminium, and other metals, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing; transportation equipment, including automobiles, rail cars and locomotives, shipsy Ease of Doing Business Rank 79th

Import and exportIndiay Exports $210 billion (17th; 2010) y Export goods software, petroleum

Chinay Exports US$1,577.93 billion ; 2010 y Export goods electrical and other

y y y y

products, textile goods, gems and jewellery, engineering goods, chemicals, leather manufactures Main export partners US, UAE, China(2008) Imports $327 billion (11th; 2010) Import goods crude oil, machinery, gems, fertiliser, chemicals Main import partners China, Saudi Arabia , US, UAE, Iran, Singapore, Germany (2008)

y y y

y

machinery, including data processing equipment, apparel, textiles, iron and steel, optical and medical equipment Main export partners US ,Hong Kong, Japan, South Korea, Germany (2009) Imports US$1,394.83 billion; 2010 Import goods electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, plastics, organic chemicals Main import partners Japan ,Hong Kong, South Korea, US, Taiwan, Germany(2009)

Contd.

Indiay FDI stock $191.1 billion y y y y y y y

Chinay FDI stock $100 billion (2010) y Gross external debt $347.1 y y y y y y

(23rd; 2010) Gross external debt $237.1 billion (2010 est.) Public debt 3,495,152 crore (US$758.45 billion) (200910) Revenues $129.8 billion (2009 est.) Expenses $214.6 billion (2009 est.) Economic aid $1.724 billion (2005) Credit rating 1.164 trillion (2010 est.) Foreign reserves $300 billion (6th; Nov 2010)

billion (22nd; 2009) Public debt 18.2% of GDP (107th; 2009) Revenues $1.260 trillion (2010) Expenses $1.358 trillion (2010) Economic aid: $1.12 per capita (2008) Credit rating $5.555 trillion (4th; 2008) Foreign reserves $2.847 trillion(2010)

Trade relationsIndia considers China its largest trading partner Indo China trade is US$60 bn (2009)

China exports to IndiaElectrical Machinery Machinery Plastic Organic Chemicals and Inorganic Chemicals Iron And Steel Iron/Steel Products Rare Earth Metals Fertilizers Impregnated Text Fabrics Manmade Filament Fabric Silk Vehicles Mineral Fuel Oil Etc

China imports to IndiaMachinery Plastic Ores Slag Ash Iron And Steel Metals Organic Chemicals Salt Earth, Stone Inorganic Chemicals Rare Earth Metals Cotton and arn Fabric Copper Etc

Growing trendsYear Indian Imports Indian Exports Trade Volume

2004 Growth 2005 Growth 2006 Growth 2007

5925.58

7672.51

13,598.09

77.15% 8934.64 50.5% 14588.04 63.23% 24036.44

80.41% 9768.34 27.2% 10469.18 7.05% 14658.79

78.99% 18702.98 37.4% 25057.22 33.87% 38695.64

Growth 2008

64.7% 31500 (approx) 31%

40.02% 20300 (approx) 39%

54.42% 51800 (approx) 34%

AgricultureIndiay India is the largest producer in the world y

Chinay World's largest producer and consumer y

y

y y y

of milk, jute and pulses 2nd largest producer of rice, wheat, sugarcane, cotton and groundnuts, fruit and vegetable producer. India is also the second largest producer and the largest consumer of silk in the world 15.7% of Indias GDP Employed 52.1% of the total workforce Average yield in 30% to 50% highest average yield in the world

y

y y

of agricultural products China is the world's largest producer of rice and is among the principal sources of wheat, corn (maize), tobacco, soybeans, potatoes, sorghum, peanuts, tea, millet, barley, oilseed, pork, and fish China fed 20 % of the world's population with only 7 % of the world's arable land 13% of China's GDP Animal husbandry constitutes the second most important component of agricultural production

India's Banking and Finance Sectory RBI y Bank branches 72,170 in 2007 y The total deposits 3,830,922 crore (US$831.31 billion) in 200809 y India's gross domestic saving in 200607 as a %of GDP stood at a high 32.7%. y The public sector banks hold over 75% of total assets of the banking industry,

with the private and foreign banks holding 18.2% and 6.5% respectively.

Chinas Banking and Finance Sectory The chief instruments of financial and fiscal control are the People's Bank of

China (PBC) and the Ministry of Finance.y Remittances by overseas Chinese are managed by the Bank of China (BOC),

which has a number of branch offices in several countries.y 98% of banking assets are state owned

Indias Industryy India has one of the world's fastest growing automobile industries y India is 12th in the world in terms of nominal factory output. y Textile manufacture is the second largest y Ludhiana produces 90% of woollens in India and is known as the Manchester of y y y y y y

India. India is 13th in services output India ranks first in IT Sector IT industry in the country's GDP 7% in 2008. In 2009, seven Indian firms were listed among the top 15 technology outsourcing companies in the world. Tourism in India is relatively undeveloped, but growing at double digits. 3rd largest fishing industry(2008)

Contd.

y Organised retail supermarkets accounts for 24% (2008) y Mining forms an important segment of the Indian economy, with

y y y y y

the country producing 79 different minerals (excluding fuel and atomic resources) in 200910 India imported about 70% of its crude oil(2010) India's oil reserves meet 25% of the country's domestic oil demand India is the fourth largest consumer of oil in the world and imported $82.1 billion worth of oil (2010) Reliance Industries Limited (RIL) which operates the world's largest oil refining complex. India is not a creditor to IMF from 2008

Chinas Industryy China is also the largest exporter and second largest importer of y

y y y y

goods in the world For 2010, inbound foreign direct investment into China surpassed $100bn for the first time, and investment overseas by Chinese companies in non-financial sectors totaled $59 billion. In 2010, there were approximately 10 million small businesses in China. World Trade Organization (WTO) in 2001 In mid-2010,China became the world's second largest economy China is the largest creditor nation in the world and owns approximately 20.8% of all foreign-owned US Treasury securities.

Contd.y China ranks first in automobile sector y China's services output ranks fifth worldwide y China's tourism industry is one of the fastest-growing industries in the national

economy y China's global trade exceeded $2.4 trillion at the end of 2008 y Industry and construction account for 46.8% of China's GDP y Around 8% of the total manufacturing output in the world comes from China itself.y China ranks third worldwide in industrial output y Textile manufacturing, a rapidly growing proportion of which consists of

synthetics, account for about 10 percent y China is the largest producer of steel in the world and the steel industry has been rapidly increasing its steel production

ConclusionIndiay Back office of the world y Focus on services y Lower GDP Per capita y Strong corporate governance

Chinay Workshop of the world y Focus on services y GDP per capita higher than

standards y Advanced institutional infrastructure y Commercially driven companies y Enjoy wide foreign range reserves

Indias(in USD PPP terms) y Lack of advanced institutional infrastructure and corporate governance y Enjoys wide foreign range reserves y Global economic integration through international trades and investments

Thank you