Economic Visions, India vs. China
Now on 2019, in nominal basis, China is 2nd and India is 5th largest country of the world, respectively
As, China and India together contribute more than half of Asia's GDP.
Both countries together, share 19.46% and 27.18% of total global wealth in nominal and PPP terms, respectively.
China is at 1st and India is at 3rd on a PPP basis,
India GDP composition (sectors) is:
• Services (61.5%).
• Industry (23%)
• Agriculture (15.4%),
China GDP composition (sectors) is:
• Services (52.2%).
• Industry (39.5%)
• Agriculture (8.3%),
Life in India & China
India was richer than China in 1990. Now in 2019, China is almost 4.61 times richer than India in nominal method and 2.30 times richer in ppp method.
A per capita rank of China and India is 72th and 145th, resp, in nominal.
A per capita rank of China and India is 75th and 126th, resp, in ppp.
As comparison of the life in both countries,the infrastructure is way better in China than in India. Public transportation in many cites in China is the well developed. India has no limit in Internet though, the social secure is not as well as China.
Electronics are cheaper in China. iPhone is 10% to 20% cheaper than India, Equipment for construction, it is cheaper in Indian, even those machines were made in China, it is still cheap in India.
India has to fight inflation more firmly, as inflation is still six times more than the 0.8 percent that is in China.
India must face this main challenge that to know not only how to reach rapid economic growth but also to maintain this growth
Because of continuous rise in non-financial debt and The China–United States trade war, The Chinese economy may get worse and lower growth rates in the long run.
The recent reports & expectation from the International Monetary Fund shown that non-financial debt will continue to rise as a percentage of Chinese GDP, and the medium-term outlook will be blurred due to the accumulation of weaknesses, based on that.
Trade relations with Saudi Arabia
Recently, China and Saudi Arabia have been increasing cooperation in the energy and financial sectors, One Belt One Road Initiative, and has signed numerous deals across several areas.
Saudi Arabia is India’s fourth largest trade partner (after China, USA and Japan) and a major source of energy as India imports around 18% of its crude oil requirement from the Kingdom.
India-Saudi bilateral trade has increased by 23.83 % to US $ 34.03 billion.
The economy of China must use the most important factors in economic growth, not increasing excess exports and investments in excess of infrastructures but rather the services sector as well as eliminating corruption in the political system.as that will lead to maintains the positive balance , restricts inflation, raises production, and improves the economic system in general.
Still, China is the best as a developed economy is to be a net source of capital.
In 2013, India was affected by chronic budget deficits and into a massive debt crisis.
For India, Chronic inflation means increasing the cost of imports and economic efficiency. Price pressures often come, which limits the ability of the central bank to reduce interest rates.
Also, that must be address the situation in the area of bribery, bureaucratic procrastination and double taxation.