1. I S
CHI NA
A THREAT TO
INDIA
Presented by:
Abdul Ham
eed 01
Honey Bal ani 03
Manish Kamble 16
Rahul Pil l ai 38
Dhiraj Vi nayki a 59
2. ECONOMY OF I NDI A
§Market based system
§Foreign trade and foreign investment as
integral part if Indian economy
§Fastest growing economy
§World’s second largest labor force
§
§
3. ECONOMY OF CHINA
§Centrally planned Economy
§Private businesses and capitalism were
suppressed
§Privatization of Farmland
§Promotion of foreign investment
§Flourishing small scale entrepreneurs
4. 50 yrs ago, India and China were among the poorest and
economically most isolated countries in the world.
How di d Chi na and I ndi a
em
er ge as economic
giants?
5. W
hat ar e I ndi a & Chi na f am
ous f or
today?
6. GDP – real growth rate:
9.8% (2008) country comparison to the world:
13% (2007)
11.6% (2006)
GDP-Per capita (PPP-Purchasing power parity):
$6,000 (2008)country comparison to the world:
$5,500 (2007)
$4,900 (2006)
note: data are in 2008 US dollars
GDP – composition by sector:
agriculture: 10.6%
industry: 49.2%
services: 40.2% (2008)
Chi na – Econom
i c Fact Sheet
7. I ndi a – Econom
i c Fact Sheet
GDP- real growth rate:
6.6% (2008)
9% (2007)
9.6% (2006)
GDP – per capita (PPP – Purchasing powerparity)
$2,800 (2008)
$2,700 (2007)
$2,500 (2006)
note: data are in 2008 US dollars
GDP – Composition by sector:
agriculture: 17.2%
industry: 29.1%
services: 53.7% (2008)
8. Com
par i ng I ndi a and Chi na’s Gr owt h
Stories
Indicators India China
Political System Multi-party
Democracy
One-party
authoritarian rule
Speed of Growth Economic reforms
started in 1991.
Average 6% growth
rate in past two
Economic reforms
started in 1978.
Average 9.5% growth
rate in past two
Areas of
Specialization
Rdeisciandgesp.owerin
software, design,
services, and
D
d
e
o
c
m
a
d
i
n
e
a
s
.
n
tin mass
manufacturing,
electronics and heavy
precision industry. industrial plants
9. Com
par i ng I ndi a and Chi na’s Gr owt h
St or i es
architecture),
manufacturing, agro-
based industry
Indicators India China
Gini index
(standard measure
of inequality)
36.8
47.0 (up 10 points
from 15 yrs ago)
Foreign Direct
Investment
6.8% (up from 0.3%
in 2004)
17.8%
Future Areas of
growth
R&D, bio-
technology, high-
value IT enabled
services (legal,
medical, engineering
IT business, services
and continued
manufacturing
11. Indian Agriculture
I n d i a is an agricultural country.
G r o w t h ofservice sector is pushing down
Contributing 17.2% of the GDP.
L a r g e l y depends onmonsoon.
Pr o v id e s employment to two-thirds ofthe
1 5 % of export earnings
R u r a l women play avital role, 50% of rural
Y i e l d s per hectare of crops in India arev
e
r
y
12. 13.1 : India's Imports and Exports of Agricultural Commodities vis-à-vis
Total National Imports/ Exports During 1990-91 to 2007-08
(Value in Rupees
Crore)
Year Agriculture Total National %age Agriculture Agriculture Total National %age Agriculture
Imports Imports Imports to Total Exports Exports Exports to Total
National Imports National Exports
1 2 3 4 5 6 7
1990-91 1205.86 43170.82 2.79 6012.76 32527.28 18.49
1991-92 1478.27 47850.84 3.09 7838.04 44041.81 17.80
1992-93 2876.25 63374.52 4.54 9040.30 53688.26 16.84
1993-94 2327.33 73101.01 3.18 12586.55 69748.85 18.05
1994-95 5937.21 89970.70 6.60 13222.76 82673.40 15.99
1995-96 5890.10 122678.14 4.80 20397.74 106353.35 19.18
1996-97 6612.60 138919.88 4.76 24161.29 118817.32 20.33
1997-98 8784.19 154176.29 5.70 24832.45 130100.64 19.09
1998-99 14566.48 178331.69 8.17 25510.64 139751.77 18.25
1999-00 16066.73 215528.53 7.45 25313.66 159095.20 15.91
2000-01 12086.23 228306.64 5.29 28657.37 201356.45 14.23
2001-02 16256.61 245199.72 6.63 29728.61 209017.97 14.22
2002-03 17608.83 297205.87 5.92 34653.94 255137.28 13.58
2003-04 21972.68 359107.66 6.12 37266.52 293366.75 12.70
2004-05 22811.84 501064.54 4.55 41602.65 375339.53 11.08
2005-06 21499.22 660408.90 3.26 49216.96 456417.86 10.78
2006-07 29637.86 840506.31 3.53 62411.42 571779.28 10.92
2007-08(P) 29777.01 964849.76 3.09 77769.71 640172.14 12.15
P Provisional
Source : DGCI&S, Ministry of Commerce, Kolkata.
13. China
Agriculture accounted for 10.6 % of t
h
e
3 3 o million- over 45% of labor force still
F a r m i n g methods have been improvedin
C h i n a produces wheat, rice, potatoes,
O n l y 15 percent of the total land available
m o r e than 75 percent of the total cultivated
17. I ndi a’s Manuf act ur i ng
Sector
Manufacturing contributes around 15% of GDP
of t
h
e
According to CSO data quartely estimate of GDPf
o
r
According to the data the cumulative growthin
I n the manufacturing sector the value of new project
18. I ndi a’s Manuf act ur i ng
Sector
I n d i a rank’s among top 12 producers of manufacturing
I n Textile it ranks 4th after China, US & Italy.
I n Electrical machinery & apparatus India ranks 5th.
I n d i a holds 6th position in basic metals category.
7 t h in Chemicals & chemicals products, 10th in leather
19. I ndi a’s Manuf act ur i ng
Sector
According to CSO the industrial output clocked anannual
T h e r e are many Companies who wants to make India as t
h
e
i
r
LG wants to make India its global manufacturing hub for its
mobile handsets.
Hyundai has make India the manufacturing & exporting hub
for its small cars. Their i10 is being manufactured only in India
& exported to the world.
20. I ndi a’s Manuf act ur i ng
Sector
L u x u r y brands like Louis Vuitton are looking at I
n
d
i
a
S k o d a Auto plans to make India its regional
S a m s u n g plans to invest 100 million US $ in
its
21. I ndi a’s Manuf act ur i ng
Sector
S u z u k i too is making India its manufacturing hub
for i
t
s
According to Investment Commission of Indiathe
Manufacturing sector is the largest employerwhich
Employment growth rate is2.78%
22. Chi na’s Manuf act ur i ng
Sector
C h i n e s e manufacturing sector accounts for 43%
o
f
I t s economy growth in average of almost 8% every
C h i n e s e manufacturing sector ranks 4th in the w
o
r
l
d
23. Chi na’s Manuf act ur i ng
Sector
C h i n a ’ s fast growing domestic marketworldwide
Purchasing Manager’s Index (PMI) whichmeasures
P M I index rose to 54 points in August up from 53.3
in
24. Chi na’s Manuf act ur i ng
Sector
C h i n a has 50% share of worldwide camera market.
& 30% of Air conditioners .
2 5 % of Washing Machines & 20% of Refrigerators.
C h i n a ’s crude steel production rose by 28.25%.
Investment in chemical industry grew by35.9%.
26. v C a n be classified into 2 t
y
p
e
s
:
ü O
ld
ü N
ew
v
v O l d Services includes:
ü P e t t y Trading
üDomestic Services
üCatering and HotelServices
27. v N e w Services includes:
üCommunications
üBusiness and legalpractices
üCulture, research andeducation.
28. INDIA v/s China
INDIA CHINA
54 per cent of GDP Below 41 per cent of GDP
Since 1978 to 2008 :
Average Annual Growth rate is 7.0% Average Annual Growth rateis
10.8%
Employment Opportunities :
High
Low
Most advanced service sector :
Delhi with a GDPshare of 77 per cent Beijing with a GDPshare of 61 per cent
Anet exporter of services Anet importer of services
30. GDP
%
Service Sectors China India Australia Korea Japan UK US
Finance and Insurance 16.50 13.27 11.83 15.53 9.78 6.89 10.35
Government and Social
Organizations
8.01 10.78 6.06 10.47 6.72 6.62 10.35
Real Estate 6.07 11.64 29.15 22.34 30.66 32.16 30.92
Wholesale, Retail Trade
and Catering
23.57 30.39 19.15 17.98 18.54 20.81 20.05
Transport,
Telecommunications etc
16.96 19.18 12.11 13.09 8.91 10.00 7.89
Transport and Storage 8.76 10.86
Post and
Telecommunication
s
8.20 8.32
Education, Health,
Research etc
28.87 14.73 21.69 20.59 25.40 23.51 20.44
Education, Culture and
Arts
8.71 7.98
Health, Sports and Social
Welfare
2.96 2.14
Scientific Research and
Polytechnic
2.25 0.89
Others 14.95 3.71
Total 100 100 100 100 100 100 100
