Factors of Economic Development: Comparing India and China In today’s interconnected global economy, China and India are continuing to emerge as leading factors catalyzing the growth of globalization and economic wealth. An overabundance of labor and an increasingly educated population, both Asian countries have transformed their nations into highly influential economic powerhouses. As of 2014, China and India combined for over two-and-a-half billion, 36.737507%, of the seven-plus billion global population. Harboring over one billion citizens each, China and India are frontrunners in the global economic market. Each nation is able to provide over 50% of their population to the workforce, allowing continual growth for their respective economies.
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According to the World Bank in 2014, nominal GDP totaled $77,868,767,983,902 globally. Together, number two China, and number nine India produced 15.95891% of this figure. However, looking at GDP from a Purchasing Power Parity standpoint, China moves into the top spot and India rises to number 3, totaling an even greater percentage of 23.440035% of the global GDP. The Asian nations’ amply populated workforce has cultivated an environment rich in opportunity, at low costs to companies, generating ideal conditions for foreign investments. China’s nominal GDP of over ten trillion dollars in 2014, 22.6% came from exports to foreign countries, while India exported 23.6% of their two trillion GDP. This immense transfer of goods and services to foreign nations is a pivotal backbone to both nations’ economies. Economists believe things will change in the future, while populations continue to grow, along with global demand for cheaper products, “India [is] projected to grow more rapidly than China over the next two to three decades…the Indian economy – which will soon boast the world 's largest workforce – is also expected to account for a rising share of global GDP” (Domínguez). These factors will turn India into a more influential global growth engine rich for …show more content…
While India and China do have near equal populations, and underwent political transformations at roughly the same time, the Chinese economy continues to be more developed than that of India. The agricultural divisions compose a major economic sector for both countries. “China’s use of agricultural techniques is far more developed than India thus yielding better quality and high quantity of crops which significantly contributes to the exports” (Kumar). However, the high-level of efficiency and technological advancements made in China resulted in a shift of their agricultural labor away from the rural farming and into the manufacturing sector. As of 2011, 50.6% of the Chinese population lives in an urban environment, considerably higher than India’s 31.3%, a clear indicator of India’s demographic spread. China dominates the world in manufacturing, exporting $2.341383 trillion in 2014, 22.6% of their total GDP. While India exports a higher percentage, 23.6% of their GDP, $487.788966 billion is only about one fifth of China’s nominal exporting value. This vast difference in exports can be attributed to the path the countries underwent during their 1970’s-1980’s reformations. “China has pursued a manufacturing-led growth strategy whereas India has chosen a more services-based development model” (Kumar). China’s focus on manufacturing during this technology-driven era has been greatly
According to the World Bank in 2014, nominal GDP totaled $77,868,767,983,902 globally. Together, number two China, and number nine India produced 15.95891% of this figure. However, looking at GDP from a Purchasing Power Parity standpoint, China moves into the top spot and India rises to number 3, totaling an even greater percentage of 23.440035% of the global GDP. The Asian nations’ amply populated workforce has cultivated an environment rich in opportunity, at low costs to companies, generating ideal conditions for foreign investments. China’s nominal GDP of over ten trillion dollars in 2014, 22.6% came from exports to foreign countries, while India exported 23.6% of their two trillion GDP. This immense transfer of goods and services to foreign nations is a pivotal backbone to both nations’ economies. Economists believe things will change in the future, while populations continue to grow, along with global demand for cheaper products, “India [is] projected to grow more rapidly than China over the next two to three decades…the Indian economy – which will soon boast the world 's largest workforce – is also expected to account for a rising share of global GDP” (Domínguez). These factors will turn India into a more influential global growth engine rich for …show more content…
While India and China do have near equal populations, and underwent political transformations at roughly the same time, the Chinese economy continues to be more developed than that of India. The agricultural divisions compose a major economic sector for both countries. “China’s use of agricultural techniques is far more developed than India thus yielding better quality and high quantity of crops which significantly contributes to the exports” (Kumar). However, the high-level of efficiency and technological advancements made in China resulted in a shift of their agricultural labor away from the rural farming and into the manufacturing sector. As of 2011, 50.6% of the Chinese population lives in an urban environment, considerably higher than India’s 31.3%, a clear indicator of India’s demographic spread. China dominates the world in manufacturing, exporting $2.341383 trillion in 2014, 22.6% of their total GDP. While India exports a higher percentage, 23.6% of their GDP, $487.788966 billion is only about one fifth of China’s nominal exporting value. This vast difference in exports can be attributed to the path the countries underwent during their 1970’s-1980’s reformations. “China has pursued a manufacturing-led growth strategy whereas India has chosen a more services-based development model” (Kumar). China’s focus on manufacturing during this technology-driven era has been greatly