Starting in the 1990s, a gap emerged in the development of the economy of India and China that attributes to china’s authoritarian government and talks about India’s performance in its service sector. India and China both are rapidly developing countries in Asia. At the same moment, both countries share the same rate of growing GDP before the pandemic. Today as China Turn in 70, China has uplifted itself in terms of economy, technological power, and military progress to India which is still moving slowly and gradually to attain global power.
China and India have vastly different political and economic strategies. Globalization works as a catalyst for both countries when it comes to accelerating economic growth; however various political and economic choices made by both countries have impacted their rate of development. Globalization has assisted multinational companies’ exploration, democratic values, and skillsets. This will primarily focus on the economic benefits of the introduction of globalization. This growth shares a large manufacturing export sector and the market incentives deduce from the opened economy. As such globalization becomes a crucial factor in terms of forming gaps.
India’s focus on the service sector, the lack of government cohesiveness, and their late opening to the global market, on the other hand, china, attributes towards manufacturing building and monopoly governance formed vicissitudes among respective economies to a great extent. When we look at the current position of India and China’s economies, it is significant to retrieve data from their history for concluding a better reason. Both countries have vast territories and utilized this in the agriculture sector. However, China’s history drove out mass industrial enterprise.
China is a large, single state and has a history of a single authority. This allows them to pursue a single goal with ease and deploy resources effectively. India always has struggled for reaching the doors of unity. A combination of a multi-linguistic state and a wide range of religious activities integrate India as one of democratic countries. They had issues because, they need to accommodate different religious people at the same time, on the other hand, being a single language-speaking nation, it would be comparatively easier for China to handle such a populous nation. These historical legacies influenced the political and economic policies of India and China all the time.
Meanwhile, Both countries liberalized their economies during the past few years. In the past 40 years, China’s development approached its growth accelerated successfully and it is ranked as the second most significant economy. Currently, china’s service sector is border India. This surpasses everything that measures one’s economic growth. As China opened up its market earlier than India in the 1990s, it has emerged as a leader in Economic development.
At the same moment, India was focusing on the IT sector which contributes much to GDP. India never experienced mass Industrialization or a boost in the manufacturing sector. They still focus on skill development. India’s approach to infrastructure is to wait for the demand to arise before building. China is the opposite. India’s mall-based projects have been funded by private enterprises. India is in dire need of a growth finance institution (a lender solely for long-drawn-out infrastructure projects).
Unlike China, India has stringent environmental protection laws. Trade and economic development have not been foremost priority of India. Their focus on native and local industries has curbed foreign investment. This is because it has shuffled its growth and economy. This often resulted in stunted growth and the paralysis of political policies. But when we go in-depth at the time of British colonization, both nations were coming together and persisted wary of the western world. These two known were keen to preserve their culture from the deeply rooted new form of encroachment However, this unified relationship was not staying longer and in 1962 an unexpected breakout conflict between china and India in the Himalayan regions inflicted one of the most serious humiliations on India.
India has made several attempts to construct peace and existence through global structure, innovation, healthcare, and infrastructure development. India is always seen to rise as a peaceful Asian country collecting its democratic values and a large emphasis is given to skills development. But there are some areas where India can beat China and just merely efforts the strong competition between China and India will get eliminated. March 2020 Brickwork report Ratings estimated India can easily beat china in the Pharmaceutical, engineering goods, and chemical and textile industries.
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The Indian Pharmaceutical industry has shown outsmarted growth amid this major slowdown by 10 percent. Afghanistan recognized the potential of Indian Pharmacopoeia (IP) – Indian standards of drugs which also gives a moment to cheer the success of the Indian pharmaceutical industry. Although India is one of the highest manufacturers of generic medicine still is heavenly dependent on Active Pharmaceutical Ingredients which we import from China. before 2014, India produces API itself
And when we talk about the Manufacturing industry, Bhargav the chairman of Maruti Suzuki said India has the potential to become one of the lower-cost countries than china if the public and government firms work together. The only thing it will cost is government involvement so that the more job will be sold the more growth will be achieved
India is pushing itself to close the gap of fiscal deficit. It has been estimated textile industry will attract a $120 billion investment by 2024-25. This means $39 billion to $300 billion in exports can be increased by 2024-25(Statista(2020). This also predicts India should move ahead with a profitable business idea for textile clothing apparel. The government’s decision of considering lifting the ban on the value-added textile sector also provided the biggest relief to investors
India is also among those vulnerable countries that have to face a significant impact of climate change. According to the Indian brand equity foundation report, as India’s economy has been increasing, energy consumption is expected to reach 15280 TWh in 2040 from 4926 TWh in 2012. Even though India is ranked 3rd in terms of renewable investment as of 2019, it has to look forward to meeting the strategic demand of the investors. To curb the highest rate of solar panels, the Government has imposed a 20% customs duty in a view to discourage imports from China and enhance the average-size solar cell manufacturing house in India
The pandemic has taught me the importance of connectivity that comes from the Telecom industry. India is currently the second-largest telecommunication market and has the second-highest number of internet users having a subscriber base of 1.2 billion. As the data consumption rate is double since 2012, the government has a chance to create a multitude of opportunities for social progress by opening its own search engines and much more. Agricultural value per worker is just 17% more than china which can be large enough if clearly productivity in India is raised, aftermath India can overtake China in just years with today’s technology and ground reality
Meanwhile, this video will be incomplete if we don’t account chemical industry. In a report by FICCI, the Indian chemical industry is expected to grow at the rate of 5.57 percent CAGR or USD 304 billion by FY25. So why we should not invest in the petrochemical industry that is equally environmentally friendly?
In terms of the Food processing market size, the Indian food market is expected to grow at 14.5% CAGR in upcoming years. It has been seen as a major bridge linking the daily consumers with the farmers and is a great unit to enable a broad range of food services. India is extremely culturally diversified in regions, landscapes, snow-capped mountains, plains hills, and plateaus. Aravalli, Vindhayachal, and Satpura ranges, Eastern Ghats and the Western Ghats Malwa Plateau, Chhota Nagpur Plateau, Southern Granulite terrain, Deccan Plateau, and Kutch Kathiawar plateau all present the bucket of tourism.
Last but not the least, the Indian healthcare industry is one of the largest sectors both in terms of employment and revenue. At one end of the spectrum, genetic and glass structure deliver high-tech medicare and on the other hand, it is a popular destination for medical tourism.