Comparison of India and China

Comparison between India and ChinaIntroduction

The comparison of India and China is the main focus regarding the Asia debate. This comparison also holds immense importance for the rest of the countries of the world. In the end, it might not be an either/or consideration (Huang & Khanna, 2003). Whereas the economy of China has outperformed India by a great margin over the last fifteen years, there is no surety that the performance related with the past is representative of what lies ahead. Each of these dynamic economies as well as their policies is now at a critical juncture in its development challenge-facing the decision of whether to stay the course or change the strategy. Out of every three people on this earth lives in China and India, and the approach with which they manage themselves has repercussions on the rest of the world.

Studies have shown that young Indians and Chinese are very motivated about their future, and they strongly believe in the future outlook of their countries. Researchers resemble the attitude and aspiration of young population of India and China with the Americans few decades ago. Grey Global Group (marketing firm) has conducted thousand of surveys form young adults in both countries and concluded that they are overwhelming confident about the progress of their nation, believe success is in their hands, and consider technological advancement as status symbol (Verel, 2013).

Discussion

Jawaharlal Nehru, the Prime Minister of India (1889-1964) formulated the post independence policies of India. In 1950, a planning commission was established and Nehru was made the chairperson who had to the job to modernize the big economic sectors. The emphasis was given to the growth in the structure of Agriculture productivity and industrialization of socialistic patterns of the society. The private ownership of industrial firms and agriculture was seen by the economy's mix patterns. Infrastructural activities, electricity, communication, manufacturing, aviation, railways and others were state controlled (Verel, 2013). Economic anguish in numerous sectors emerged during the four decades of socialistic economy with central planning.

The economy of the country and the business came to a slow and were stalled by the model by Nehru due to the control system or License Raj which was prevailing in the country. Numerous difficulties were faced by the private ventures and Indian think tanks abhorred the FDI (Foreign Direct Investment). About 1 % per capita was the annual economic growth, after the three decades of independence. 4.5% was the annual growth of the economic industry. The industry's profit and productivities were dampened by the central planning (Huang & Khanna, 2003). Due to the control and tariff, the importing of goods was not encouraged. An insignificant role was played by India in the World trade. This was the time for the government of India to adopt the globalization market driven economy and ditch the decade old central planning system. Due to the continuous efforts of the Indians, now India is among the successful nations of the world which are striving to achieve ...