india and china

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Crouching Tiger& Flying Dragon

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'You ain gonna like me , you jus mad, cause i tell it how it is, and you tell it how it might be'!

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Page 1: India and China

Crouching Tiger& Flying Dragon

Page 2: India and China

India (Federal Republic)

India is to Services

China (Communist

state)

China is to Manufacturing

Page 3: India and China

Year: 2010

INDIA CHINA

GDP $ 1.704 Trillion $ 5.878 Trillion

GNI (per capita):

$ 1340 (Rs.71,626.8)

$ 4260

GDP(official exchange rate):

$ 1.430 Trillion $ 5.878 Trillion

GDP (PPP): $ 4.06 Trillion $ 10.09 Trillion

Source: CIA-The world fact book

Page 4: India and China

India to be the world's largest economy within 39 years

Indian GDP in 2050, measured by purchasing power parity (PPP), will be $85.97 trillion. China, in second place, will have a GDP of $ 80.02 trillion and the US $ 39.07 trillion.

The Indian economy will have to grow at an average annual rate of 8.1% a year for the next 39 years.

Source: US banking Cite Group

Page 5: India and China

In 1985, 93 % of the population had an annual household income of less than 90,000 Indian rupees.

By 2005, this had dropped by about two-fifths to 54 % of the population.

By 2025, we see the deprived segment shrinking even further to only 22 % of the total population.

Page 6: India and China

China

India

0% 2% 4% 6% 8% 10% 12%

11%

9%

GDP (real growth rate)

China 45.8% of GDPand

India 29.5% of GDP (then 13.3%)

Page 7: India and China

INDIA CHINA

Revenues $ 183.6 Billion $ 1.227 Trillion

Expéditeurs $ 209 Billion $ 1.323 Trillion

Public Debt 50.6% of GDP 16.3% of GDP

Budget Surplus

-5.6 % of GDP - 1.6% of GDP

Page 8: India and China

Industrial Production Growth rate

China

India

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

15.70%9.70%

Page 9: India and China

INDIA CHINA

Income level Lower Middle Income

Upper Middle Income

Ave age of schooling of adults

5.1 6.4 (25% more)

Unemployment 10 % 6.1%

0.8 1 1.2 1.4 1.6 1.8 2 2.20.00%

5.00%

10.00%

15.00%

100.00%

100.00%

Inflation Rate

Inflation Rate

Page 10: India and China

INDIA CHINA

Reserve of Foreign exchange and Gold

$287.1 billion $2.876 trillion

Debt External $316.9 billion $529.2 billion

India China$0.00

$100.00 $200.00 $300.00 $400.00 $500.00 $600.00

$91.86

$297.60 $188.6

0

$578.80

FDI Investment

AbroadHome

Billion

Page 11: India and China

INDIA CHINA

Exports $ 225.6 billion $1.327 trillion

Imports $ 287.5 billion $ 357.7 billion

Oil consumption $ 3.182 million bbl/day

$ 9.189 million bbl/day

Current Account Balance

- $ 51.78 billion (deficit)

$ 305.4 billion (surplus)

Page 12: India and China

Indian Accounts at the Swiss Bank alone are 10 times more than all the countries put together. With all the black money from the Swiss Bank, we will have enough annual budget for the next 12 years minus the growth.

Page 13: India and China

Demographic Transition (2011 est)

Age Structure INDIA CHINA

Population 1.216 billion 1.341 billion

0-14 years: 29.7% 17.6%

15-64 years: 64.9% 73.6%

65 years and over: 5.5% 8.9%

Human Development Index:

0.547 0.687

Page 14: India and China

The demographic dividend will ensure that India has the largest number of working-age people in the world (over 800 million) between 2015 and 2035.

Source: US banking Cite Group

Page 15: India and China

 India's working-age population will increase by 240 million over the next two decades.

About 25 % of the world's new workers will be Indian in the next three years. Over half of India's population is below 25 years. By 2020, the average age of an Indian is expected to be 29 years.

Source: Deutsche Bank

Page 16: India and China

China Labour Force-815.3 million

34.10%

27.80%

38.10%

Labour force by occupation

Sevices

Industries

Agriculture

43.00%

46.90%

10.20%

GDP(composition by sector)

Page 17: India and China

India Labour Force- 478.3 million

19.00%

26.30%54.70%

GDP (composition by sector)

52%

14%

34%

Labour force by occu-pation

Agriculture

Industries

Services

Page 18: India and China

India's services-driven economy has not been as capital-hungry as China's manufacturing-based one, and household savings have been sufficient for the required investments so far, rectifying this imbalance offers the key to accelerating India's growth rate in the future.

Page 19: India and China

Indian Economy is domestically driven.

India could emerge as the world's third largest economy by 2030, benefiting from strong domestic demand and favorable demographics standard.

Chartered Global Research study.

Page 20: India and China

If all the Indian software professionals were sent back home…

1. The entire world network will not work, due

to collapse in data transfer.

2. No updates will be available for any of the known

software's, because most of the apps are developed by Indians.

3. Microsoft, Google, pay-pal, oracle and other software giants will be forced to relocate to

India.

Page 21: India and China

INDIA CHINA

Improved Water source: urban: 96% of population rural: 84% of population Total: 88% of population

Sanitation Facility Improved: urban: 54% of population rural: 21% of population Total: 31% of population

Improved Water source: urban: 98% of population rural: 82% of population Total: 89% of population

Sanitation Facility Improved: urban: 58% of population rural: 52% of population Total: 55% of population

INDIA CHINA

Maternal Morality rates

230 deaths/100,000 live births

38 deaths/100,000 live births

Life Expectancy at birth

66.8 years 74.68 years

Page 22: India and China

Made in China to “Made by China”

Increasing people's incomes, reducing poverty and improving the living standards and quality of life.

Expanding access to basic public services, increasing the educational level of the population.

Page 23: India and China

“Growth has to be aimed within a relevant country context.

India has its own unique past, a very different present, and will

chart her own version of the future. In that future, the most critical component is to keep

democracy safe.”

India shouldn’t try to grow as rapidly as China

Page 24: India and China

India’s long-term prospects look Stronger

India is no. 1 talent supplier in the world.

India's advantage in having a large pool of English speaking people.

India has the advantage of having a vibrant, energetic and creative NGO sector.

Page 25: India and China

Tortoise and the Rabbit Story

The Chinese 'Great Leap Forward', began in 1949.(62 years for China to develop)

It took India 20 Years to develop  after the free-trade bills were passed by Rajiv Gandhi in 1991.

 India’s literacy rate in 1991 was 52.21% and now it is 75.04%.(youth literacy is 84%)

 Indian Middle class is the soon going to be largest in the world.

Page 26: India and China

Yoga, Spirituality.

Ancient Science and Astronomy

India’s Soft Powers

Page 27: India and China

India’s Problem

Infrastructure sector.

Insufficient investments.

Losing the best and the brightest abroad.Constraint's in labor market needed for manufacturing Industry.

Page 28: India and China

CORRUPTION

CHINA INDIA

(Death sentence)

Page 29: India and China

But if a growing GDP is not to

become a cruel irony for India's 445 million still-desperately poor people, the government must begin the second stage of economic liberalization without losing any further time.

Page 30: India and China

China’s Problem

Middle Income Trap (transition from middle income to high income status).

Ageing population - "one child" policy.

High domestic savings rate and correspondingly low domestic demand.

As China's per capita income rises, its 1.34 billion people will increasingly yearn for real freedom: a free press, an open Internet and, most crucially, democracy.

Page 31: India and China

The Dark Side of Development-ChinaReverse engineering and stolen blueprints

25 Million People involved illicit manufacture.

Network of highly sophisticated underground supply chain with other countries.

Fake Pharmaceuticals business.

Page 32: India and China

Shadow EconomyDelisting of Dubious Chinese companies from NYSE and NASDAQ.

Global hub for duplicate designer brands and labels.

Weapons Supplier of the world.

High level of Human trafficking because of high supply of prostitutes from China all over the world.

Page 33: India and China

You want a

fastest growing economy in the world where you are work with “gun on your head” or a second fastest growing economy in the world with “democratic system”.

Page 34: India and China

Hard Core Facts:China and US economy are interconnected economically as China has invested a lot of money into the US.

China and India are in a race to invest in Africa, Middle East, etc.

India’s tardiness at the bureaucratic levels, contrasts with the "single mindedness" on the Chinese side.

Page 35: India and China

Need to build a Quality Brand Name for India :Strong Government with a clear perspective.

A consistent and thoughtful marketing effort.

FDI attractiveness.

Creation of zones and infrastructure for business.

More of Privatization.

Page 36: India and China

The total amounts of fossil fuel,

farmland and fresh water and many other critical resources are fixed and will seriously impact China and India's potential for economic growth. So growth wont be judged by the “growth of GDP" but on the basis of sustainability and energy efficiency development in Future .

Page 37: India and China

THANK-YOU

[email protected] IIPM Bangalore