INDIA AND CHINA : A COMPARISON OF THE

ECONOMIES

THE “MAO-HATMA” FACTORMao Zedong and Mahatma Gandhi are two important figures in 20th-century history, both of whom are known for their distinct political philosophies. Mao in China and Gandhi in India both led revolutions that shaped their countries into what they are

today. Though they now have very contrasting reputations, in their time they had both

similarities and differences in political views.

Zedong Mao

Mao was a Chinese communist leader and founder of the People's Republic of China. He was responsible for the disastrous policies of the 'Great Leap Forward' and the 'Cultural Revolution'.

•IMPERIALISM (the domination of one nation by another)Gandhi’s most famous struggle was to gain independence for India from British imperial rule. In China, which was already an independent country during the communist revolution, Mao also considered imperialism to be among his people’s enemies.

•SOCIAL CLASSESMao asserted that people are naturally divided into classes, and that the downtrodden must struggle against the upper classes to establish a socialist society with equal distribution of resources. Gandhi sought the cooperation of all economic classes for the greater good, and he was sharply critical of India's traditional caste system. He, too, believed that resources should be distributed more equitably.

Difference of opinion

•VIOLENCEGandhi is famous for being against the use of violence. Mao believed the opposite: that violence is inevitable and the source of all progress in history. He famously said that “political power grows out of the barrel of a gun,” and believed military force was the only way to overthrow the entrenched ruling elites of the Chinese Nationalist Party.

•WOMEN'S RIGHTSMao and Gandhi both advocated greater equality for women. Mao spoke of how women in China were doubly oppressed by traditional society, arguing that they should participate in society on equal footing with men and contribute equally to the workforce. Gandhi also spoke of the natural equality of men and women, and was especially concerned about how women lacked freedom of choice in traditional Indian marriages.

The past pitted against the present...

Science and technology

-Industrial growth of China is the fastest and

highest at 53% as compared to 26% of

India.-China’s science and technology is

undergoing great development. China’s

output in science and technology has

increased fast.

CULTURAL DIFFERENCE BETWEEN INDIA AND CHINA

Language and culture of china and India

-The han culture is the predominant culture in china.-In contrast India has over 300 different ethnic and racial groups. Every religion in the world is represented in India.

CHINA INDIA

India is a birthplace of

Hinduism, Buddhism, Jainism

and Sikhism.

The Indian cultures, often labeled as an

amalgamation of several cultures spans across the

subcontinent.

The Indian government

represent the rule of minority

There are 56 officially

recognized ethnic group in china

Chinese culture is 1 of the oldest of

the world

The Chinese got represent a rule of

the majority

Transporting you across the border…

China & India:Comparative Study Of EconomiesTransportation Infrastructure

CHINAThe People's Republic of China possesses a diversified communications systemIt has an extensive system of automatic telephone exchanges connected by modern networks of fiber-optic cable, as well as a domestic satellite systemCellular telephone service is widely available, expanding rapidly, and includes roaming service to foreign countries The Chinese communication system links all parts of the country through the following media:• Telephone• Radio• Television• Internet• Mobile phone web users• Trans-Pacific Express

Transportation Sector in India

An important part of the nation's economy.

Since 1990s all modes of transport by land, water and air have been developed. However access to these modes of transport has not been uniform.Public transport remains the primary mode of transport. It transports roughly 7651 million passengers and over 921 million tonnesof freight annually, as of 2011Motor vehicle penetration is low by international standards, with only 103 million cars on the nation's roads.

CHINA- Snippets on Transportation Infrastructure

The Donghai Bridge in china is one of the longest bridges in the world.

Beijing Capital International Airport the busiest airport in Asia.The Transrapid Shanghai Maglev Train, with a top speed of 431 km/h (268 mph) is the first and only commercial high-speed maglev line in the world.(i.e a train that uses magnets to cover distances)Rail, which is the primary mode of transport, has doubled in length since the mid-twentieth century, and an extensive network provides service to the entire nation

Transportation Infrastructure Landmarks in India

Chennai Mofussil Bus Terminus one of the biggest bus terminus in Asia, located in the metro of Chennai, Tamil Nadu

Bandra Worli Sea link at Mumbai

Golden Quadrilateral

East-West and North-South Corridors

The Rail Freight Corridor from Delhi to Mumbai

CHINA- Transportation Modes

Rail

Metro

CHINA- Transportation Modes

RoadBridgesAirPorts and shippingWaterways

Transportation Modes in India

Traditional means• Walking• Palanquin• Bullock cart and horse carriage• Bicycle• Hand-pulled rickshaw• Cycle rickshawPublic road transport• Bus• Bus Rapid Transit System (BRTS)• Taxi• Auto RickshawUrban rail transport• Suburban railway• Urban mass rapid transit• Monorail• Light rail• Tram

Who makes the money . . . . . and who doesn't

I

Employment and poverty reduction

STRUCTURAL CHANGE OVER FOUR DECADES

China: “classic” pattern, moving from primary to manufacturing sector, which has doubled its share of workforce and tripled its share of output.

India: Move has been mainly from agriculture to services in share of output, with no substantial increase in manufacturing, and the structure of employment has not changed much. Share of the primary sector in GDP fell from 60 per cent to 25 per cent in four decades, but share in employment still more than 60 per cent.

Employment trends in India

China: Officially 4 per cent of the population now lives under the poverty line, unofficially around 12 per cent.

India: Official poverty ratio much higher and persistent, currently 28 per cent. Food deprivation is much higher.

POVERTY REDUCTION

Rates of poverty reduction Rural India Urban India

Annual poverty reduction in percentage points 1973-74 to 1987-88 -1.24 -0.79 1987-88 to 2004-05 -0.64 -0.74

Annual poverty reduction normalised to initial year, per cent 1973-74 to 1987-88 -2.19 -1.60 1987-88 to 2004-05 -1.62 -1.92

POVERTY REDUCTION IN INDIA DEPENDS UPONa relatively egalitarian path of growth increases in agricultural productivity that help raise

wages and keep food prices under controlexpansion of non-agricultural employment, including in

rural areasdirect public action in the form of poverty eradication

programmes aimed at generating productive employment for the poor.

Human developmentChina: earlier extensive public provision of health and

education: universal education until Class X, and public services to ensure nutrition, health and sanitation. (In the 1990s, higher fees and some privatization of such services led to reduced access and worsening indicators

India: the public provision of all of these has been extremely inadequate throughout this period and has deteriorated in per capita terms since the early 1990s. Since 2004, slight increase in education spending but still well below China; government health spending still very low.

WHO MANAGAES THE MONEY?

India1.Interest rates in India are market

determined with the RBI as early as the 1990s and is also fully electronic.

2.The Indian banking system can be characterized by a large number of banks with mixed ownership. However, 27 public sector banks—namely, banks owned and controlled by the state—continue to dominate the Indian commercial banking landscape.

3.The rupee is largely market determined. It depreciates and appreciates depending on the market

China1.The China Banking Regulatory

Commission (CBRC), monitors the progress of reforming the state-owned banks, since March 2004

2.The high degree of state ownership of commercial banks has traditionally been accompanied by a strong emphasis on lending to state-owned enterprises (SOEs) in China. whereas the second-tier, joint stock, and third-tier city commercial banks are somewhat more oriented toward non-state enterprises.

3.Unlike the Yuan which was a managed peg until August 2008

THE BANKING SECTOR

Observation• To conclude, China and India both have accomplished a great deal in reforming

and improving their banking industries in recent years.

• Because state ownership will continue to dominate the banking sector in each country, the major challenge for the governments in China and India will be to ensure that banks can operate as genuinely commercial businesses by striking a proper balance between their roles as owners and as supervisors of banks.

• On the whole, the financial system in China is much larger than that of India. The size of the commercial banking system of China is about eight times the size of the Indian commercial banking system.

{SMES- Small &Micro-sized Enterprises}

What drives us…

Energy trends for China and India•The Chinese and Indian economies are growing at an unprecedented pace. Due to high economic growth based on rapid industrialization the energy consumption of both countries is rising fast. Against this background it is explored how the quest for energy security has transformed both countries’ foreign policies. •To add to this, both countries have joined the group of the world’s biggest importers of oil and gas!

The new energy diplomacy •China’s integration into the global economy has led to a transformation of its foreign policy. Traditionally China has tried to remain self sufficient and mainly relied on domestic energy resources to drive its centrally planned economy. Since the economic liberalization of the Eighties, energy consumption has dramatically increased and domestic supply cannot cover domestic demand anymore.•India’s rise as one of the world’s major energy consumers shows many parallels to China. India was the fifth largest consumer of oil in the world during 2006. But India still has one of the lowest CO2 emission levels per capita.

Being a tropical country it can efficiently utilize solar and wind power as a available energy source but it is yet to come up with effective cost saving technologies to be able to do so.

CHINA : 59.6 quadrillion Btus. INDIA : 14 quadrillion Btus.

Coal (69%) Oil (22%) Hydroelectricity (6%) Natural gas (3%) Renewable (0%) Nuclear (1%)

PER CAPITA CONSUMPTION34.9MILLION Btus.

Coal (52%)Oil (34%)Hydroelectricity (5%)Natural gas(7%)Renewable (0%)Nuclear (1%)

PER CAPITA CONSUMPTION3.2million Btus.

TOTAL ENERGY CONSUMPTION

(unit of measuring energy , 1 British thermal unit. = 1 055.05585 joules

INSTALLED ELECTRICIY CAPACITY

ELECTRICITY PRODUCTION

CHINA 391.4 GIGA WATTS INDIA 126.3 GIGA WATTS

CHINA 2079.7 BILLION KILOWATT HOURS

INDIA 556.8 BILLION KILOWATT HOURS

ELECTRICITY CONSUMPTION CHINA 1,297 BILLION KILOWATT HOURS INDIA 519 BILLION KILOWATT HOURS

.RELATIONS THAT MATTER.

While it was a practice in china to send at least one male member from each family, to fight the war, for its imperial army no

matter how young or how old, taking the toll on families all over the

country.. Such as in the case of the “Mongolian

Huns” invasion..

… the British did not exploit us any Indians ay lesser. The railways built during the

colonial period were with the sole purpose of mobilizing the army within the country and commercializing agriculture, where the social benefits of

the rails enabling long journeys were soon

outweighed by the country’s economic loss

The scenario of defense :The Border Defense Cooperation Agreement (BDCA) inked between India and China on Wednesday facilitates establishment of a hotline between the military headquarters of the two countries, besides border personnel meeting sites in all sectors receiving broad directive not to tail each others' patrols along the disputed borders.

Key lessonsTHE ECONOMIC ASPECT There has been a creation of new institutions and universities , opportunities for independent leadership training, and efforts to expand fundamental research base and cultivate a culture of technology. But despite this outreach and funding of programs, there are still quite a few challenges that need to be addressed for making India a super power by the year 2020.THE MORAL ASPECT Though India still has a long way to go in terms of progress, like learning from china how to make use of its vast population as an asset instead of a hindrance to growth, on which the blame for every failed policy can be shifted. But we are not far behind!A little change in our tactics, shift of the onus of governance onto developmental strategies and not divisions and dharnas, along with a pinch of a progressive mindset, and we are good to GO!

Gracias por su atencion!

Thanks for your attention!謝謝