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Introduction

Emerging markets compared viz:

^|ower sector
^Education system
^Oil and gas sector
^|ort and shipping
^Agriculture
^ infrastructure
^Service industry
^Role of FDI
^Trade patterns
^Trade policies
^conclusion
 Introduction
India and china emerging global players:

^ Ôigh economic growth rates

^Rapid raising share in world
^Large inflows of FDI
^Engines of demand growth in commodities
^ÿ


^ÿhina and India together account for about 37.5% of world

population and 6.4% of the value of world output and income at
current prices and exchange rates

^If ÿhina opened up in 1978, India did so in 1991 i.e 14 yrs after
ÿhina therefore any comparison of India of today should be made
with china as it was more than a decade ago as emerging global
powers now

^Since the two countries have similar labor endowments and

development lags due to government controls and protected
nature of their economies , they can be expressed to follow
similar growth paths on opening up͙
 |



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^ iuch of china͛s dazzling infrastructure was been

built in the late 1990͛s and India is gearing upto the
repeat that performance in the latter part of this
decade.
^ Foreign inflows into china jumped substantially in
the early 1990͛s and those into India have jumped in
the mid -2000͛s.
^ ëood education and health facilities are necessary
for inclusive development they are state subjects in
India and in ÿhina also, local government has the
large share of the responsibility for their provision

^ The ÿhinese culture is more homogeneous and

Indian culture is great diversified

^ Indian greater expertise with market also shows in

the financial sector, which is more deeper and more
robust than ÿhinese counterpart.
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' Transport, ÿommunication & |ower

Source: ÿhina Statistical Yearbook, RBI, iorgan Stanley Research

-15-
 ducation,tem

^ërowth rate-India@17%, ÿhina@13%

^|rimary, secondary education, vocational education trainning

in china results in 99.1% literacy rate.
^Where as in India it is 50 to 60 %

^Adult literacy India -61%

ÿhina-91%
^Expenditure on education India- 10.7%
ÿhina -12.8%

^But coming to quality education India is far more better than

china
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^Indian imports amounted to $130.36 billion where as china is 424.59 billion

^ The largest container vessel calling at ÿhinese |ort is more than 13,000 teus where
as at Indian container terminal (JN|T) is 6,000 teus.

^The draft at Shanghai is 19+ m where as at JN|T it is 11.5m and at iundra it is 17.5
m.

^The berth length at Shanghai is 13,800 m and that at hong kong is 4,426 m whereas
total container berth length at JN|T is 2000 m and at 1280 m at iundra
 
-


^ The investment rate in ÿhina (investment as a share of ëD|)
has fluctuated between 35 and 44 per cent over the past 25
years, compared to 20 to 26 per cent in India.

^ Infrastructure investment from the early 1990s has averaged

19 per cent of ëD| in ÿhina, compared to 2 per cent in India.
 .
- 
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^ ÿhina can afford to have such a high investment rate because
it has attracted so much foreign direct investment (FDI.

^ But FDI has accounted for only 3-5 per cent of ëD| in ÿhina
since 1990, and at its peak was 8 per cent. In the period after
2000, FDI was only 6 per cent of domestic investment.
Where as India is only 4%.

^ Recent inflows of capital have not added to the domestic

investment rate at all, macro economically speaking, but have
led to the further accumulation of international reserves, now
increasing by more than $120 billion per year.
 )
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^ ÿhina: ͞classic͟ pattern, moving from primary to
manufacturing sector, which has doubled its share of
workforce and tripled its share of output.

^ India: iove has been mainly from agriculture to services in

share of output, with no substantial increase in
manufacturing, and the structure of employment has not
changed much. Share of the primary sector in ëD| fell from
60 per cent to 25 per cent in four decades, but share in
employment still more than 60 per cent.




^ ÿhina: Rapid export growth involving aggressive
increases on world market shares, based on
relocative capital attracted by cheap labour and
heavily subsidised infrastructure.

^ India: Lower rate of export growth, with cheap

labour due to low absolute wages rather than public
provision and poor infrastructure development. So
exports have not yet become engine of growth,
except in services.


.


^ ÿhina: export employment was net addition to
domestic employment, since until 2002 ÿhina had
undertaken much less trade liberalization than most
other developing countries.

^ India: increases in export employment were

outweighed by employment losses especially in small
enterprises because of import competition.
 
,
)

^ ÿhina: Officially 4 per cent of the population now lives under
the poverty line, unofficially around 12 per cent. (Reflects
earlier asset redistribution and basic need provision in ÿhina
under communism, plus larger mass market and role of
agricultural prices.)

^ India: poverty ratio much higher and persistent, between 26

per cent and 34 per cent depending upon how one interprets
the NSS data.