Question

Compare the economic policies and relative economic performance of China and India.

Answer 1

China and India are the part of BRICS nations and these two countries have achieved fast economic growth. China is the country with an economic policy that focuses upon GDI to the country, export of its goods and promote specialised infrastructure to achieve manufacturing growth. In comparison to it, India also have economic policy that attracts FDI and provide different incentives for the domestic as well as foreign enterprises. Here, India has achieved faster growth in service sector in comparison to China's growth as a manufacturing economy. It has brought more stability to Chinese economy than that of India's economy.

Both nations have achieved good economic growth in the last 10 years, but China' economic performance is ahead of India.China has become manufacturing economy and India has become service economy. It is due to the relatively higher political stability in China. India has its own liberalization drive that is gradual in nature. Further, both the nations take the bigger share of outsourcing jobs coming to Asia and rely upon it to feed their low cost labour force. So, China and India are doing relatively well in delivering good economic performances.