Question

‘The rapid economic growth of China and India in the last twenty years owes much to the size of theirs economies, so their experience cannot be replicated in smaller economies.’ Discuss using relevant literature and data to compare the economic performance of either China or India with one of their smaller neighbours.

Answer 1

We will distinguish the emerging market of India and China. The annual GDP of China was $13,407,400 million, while it was $2,716,750million for India in 2018. The GDP per capita for China was $9,645, while for India it was $2,029 in 2018. India have a large innovation capacity that is being deployed not only for their own requirements however also to perform R&D for multinational companies. India is becoming increasingly vital player on the global stage. The rapid growth of India's economy has far-reaching implications for poverty reduction, global living standards, and competitiveness and distribution of income in the rest of the world. However economy of China beats India hands down in entrepreneurship. It's digital economy grows not just due to consumers and investors but also because it's government too supports it. Chinese Premier Li Keqiang started an 'Internet Plus' policy with an aim to promote the integration of digital technologies into numerous economic sectors. China has better infrastructure and is better developed in comparison to India. Moreover China produces more entrepreneurs compared to India due to the large economic base. More people in China participate formally in the economy compared to India. India needs to reform its labor laws, grow its manufacturing sector, invest in infrastructure, further liberalize its global trade, and strengthen its financial system by decreasing the influence and dominance of the public sector. A bigger consumer base will not only make it simpler for Indian entrepreneurs to scale up fast, however will also be able to attract new entrepreneurs to try out disruptive issues.