A Comparative Analysis of the Economic Growth of China and India

Abstract

Indian and Chinese economies are growing rapidly among the Asian countries due to economic reforms. The prime objective of this study was to compare and analyze the economic status (in terms of economic growth, FDI inflows, export and import, remittance, labor force, tax and tariff) of both the countries. This comparative study was conducted using a descriptive method form the secondary sources of data of UNTACT Stat and Morgan Stanley Research from the period of 1980 to 2009. The study showed that China put greater focus towards infrastructure development, removing tariff and non tariff barriers, development of skilled labors, cost effectiveness and speedy decision making ability. On the other hand India’s focal point was the service sector like IT-sector. The study also indicated that India had better financial, political and legal practices as compared to China.

Keywords: India, China, Reform, FDI, GDP

JEL Classification: E60, E61, O10, O11, O2, O4