Both China and India have grown rapidly in the last decade. However, India seems to perform less well in terms of economic growth and poverty alleviation compared to China.
Political System
China and India offer two different political models: a democracy against a regime of State -Party. If we analyze the political situation in India, it seems to be quite conducive to investments. The Republic of India is a constitutional democracy under the rule of federal union governed by the 1949 Constitution that defines a parliamentary system of government, provides functions and powers of the central government, the states, and between the two fields, set the scope and powers of the executive, legislative and judicial. The Constitution of India undoubtedly reflects the legacy the British-American political tradition; together with its own tradition were embedded principles on separation of powers and representation of different political forces, whose background is included in Government Act of 1935 (Alamgir, 2008).
The counterweight system involves discussion and negotiation based on negotiation and the exercise of popular participation through voting in competitive elections. Despite identification with Hinduism, engineering design policy applied to modern Indian state that is imposed secular, secular, considering the dispersion of religion, ethnicities and religions who live in the country (Chih, 1999).
Political Culture
The Indian political life has been dominated since independence from the British Crown in 1947 by the Congress Party (CP) conservative roots, and undisputed "legitimacy of origin" as a result of his leadership in the articulation of the collective effort that became in the country's independence. However, the exacerbation of separatist conflicts in combination with the deteriorating economic situation, political violence religious clashes product between Catholics and Muslims, and subsequent leadership crisis undermined popular support of the CP. The increasing political centralization in a country marked by religious tensions (particularly in the states of Punjab, West Bengal and Assam) during the eighties, the lack of clear leadership in the early nineties, they removed part of the bourgeoisie for, upper castes and popular sectors. Thus, the PC ceded power to the opposition abandoned its role as "dominant party" in Indian political life for nearly half a century (Alamgir, 2008).
The breakdown of old alliances led to the imposition of a "political agenda" by the Hindu Nationalist Party (HNP). After a period marked by political and economic crises paths, and the accumulation of power by a rising China facing a social and economically backward India, accelerated the implementation of economic reforms. As a result, the "political action agenda" of the HNP put emphasis on economic recovery, the use of incentives to attract foreign investment, reforms in the industrial sector and taking a course in foreign trade openness.
Economic trends in India, though far from the accelerating Chinese sequence, has been stable and directed towards improving social indicators. The opportunity provided by democratic competition has resulted in the recovery of the CP grassroots and after a decade of market reforms has given the BJP government, however, expectations ...