The Economy of India and China

In the early era, India and China were the two largest economies in the Europeans’ eyes. India and China were treated as the house of immersive western wealth during the 18th century. Both of the countries were and still are the most populated countries globally. Apart from China, India is the second-largest country to be part of the BRIC March, which played a great role in the contemporary era of the new century. However, economic development took place in both countries at their own particular speeds.

Economy of India

India had been slow in decision making, which led to the economic development proceeding at a slow rate. The basic reforms that came towards the development of the economy of India took place in the year 1997. 

The Government of India put forward several conditions in that reform, which included the privatisation of SOEs (Principle State Agencies), deregulation of industrial sectors, and enormous control over commerce and direct foreign investments. Various postulations in the economy of India cause the country’s annual growth to rise at a rate of 7% per year between 1997 and 2011.

By 2012, India captured a faster pace in the direction of development. This increase in the economy of India led to the growth of the ITI sector, global wealth, several service sectors, and enormous growth in foreign firms.

Economy of China

China’s economic reform was implemented in the early era during the year 1978 by Deng Xiaoping. There was a drastic growth in China’s economic development, making it one of the largest economies. 

The centralised economic system of China was converted and put forward into the field of the market economy. These new economic reforms have some conditions and postulations, such as: 

• The autonomy of state companies
• Movement on liberating the prices
• The fascial decentralisation
• Modernising the banking system and the financial market
• Dismantling several systems like the communal systems

Moreover, China focused its efforts on establishing business relations abroad and in the field of direct foreign investment. In 2015, China became one of the largest economies in the world, becoming the first country to cross the US economy in the history of economic development.

Challenges Faced during the Economic Development

In this process of economic growth, several hurdles need to be tackled along the way. China has suffered a lot of challenges while enhancing its economy. Those challenges included: 

• Reduction of environmental pollution
• Level of corruption
• Crimes
• Increased job opportunities
• Improved global wealth

The introduction of economic reforms played an important role in tackling all of these problems. Subsequently, they led to the uprising and development of China’s economy. 

Similarly, several challenges were faced by India during its economic development: 

• Decrement in the poverty rate
• Elimination of violence
• Discrimination against women and children
• Promoting jobs in agriculture
• Reformation and improvement of the scholarship systems
• Controlling the migration

During 2014-2015, India showed tremendous growth and development in the economy. India gained a PIL growth of 7% by surpassing the challenges with the help of new economic reforms.

Economic Development: India vs China

Foreign direct investment has studied the increasing percentage, i.e., the growth of India and China, respectively. There has been a drastic development comparison between India and China. 

• The GDP growth of China is considered to be higher than India’s. India’s GDP is evaluated to be 7%, and China’s GDP was 10%. 
• China’s manufacturing sector is also considered to be much more developed and enhanced compared to that of India. 
• China’s poverty level is as low as 5%, whereas the poverty level in India is approximately 25%. 
• India has more knowledge than China when it comes to IT services. 
• China has a higher rate of development in the economy, as it started up the economic reforms in the year 1979, whereas India came into effect by the year 1991.

Conclusion

India and China had been the largest economies in wealth, wisdom, service, etc. The European nation had their eyes on the nations of China and India based on their immersive dedication, workplaces, and services. 

The economic changes in the states of China and India took place in the years 1979 and 1991, respectively. There was a sudden growth in the Chinese economy as they adopted the methods for economic development during the early era. However, India was slow in decision-making, which led to the slow development of India in the field of economic growth.