China got independence after Indian independence and developed more than India. What is the success story of China?
The difference between India and China is that between a sprinter and a marathon racer. China and India were at the same level in 1980. China did an extraordinary sprint between 1980 to 2010 when it experienced economic growth of 10 % per year. Indian politico-economic system will not allow India to grow so fast.
All is not lost, however. Chinese economic growth will now slow down and will probably be 3 % per year after 2025. Indian economy will continue to grow at a rate of 6 % per year for many more decades.
We can't compare the to their is huge difference between the two except population nothing is common between us so we are not the same our way of functioning is different then that of Chinese.
Though we got independence in the same period as china thier is huge difference china opened of its economy in late 80 ‘s way ahead then india.
What ever kind of goods can be manufactured in china even duplicates of original one. ( no one knows why labour's is cheap thier is something which we don't know it's not definitely the case of productivity Chinese work harder the case here is different. Thier is something hidden here ).
While India open ups its economy in late 90’s or early 20’s way behind the china..Nor did manufacturers find equal manufacturing opportunity in India due political, or any other reason they were not interested in another India after just 15 to 20 years of investment in china they are not interested in manufacturing in India.
Ruat Ruat, Owner (2019-present)
However China and India, except their populations, are very different countries, which is not very common for two countries that share a significant border. Politics have been always different in the 2 countries, while India a former British colony, suffer a lot of co ption and laziness of their people.
A.V. Dagaonkar, BE MBA Sr Management Expert (1970)
Ask what I have done, how much hard work and more productive I can be
Never compare either nations or personal life
That is road to disaster
Ramesh Gupta, B.Sc. Mathematics, Chhatrapati Shahu Ji Maharaj University
after opening their economy to the world they became manufacturing HUB to world by shear power of cheap manpower which was controlled by their go nment tightly and was producing much better output than Indian counterpart.
Chandrasekaran Nair, Off-shore Installation Manager (OIM) at --- (2000-present)
3 thier constitution made each other. One citizenship and law for all
4..they never take western educational system
5…they made highly equalled technical workers.
6 they made youngsters 4 thier nation not sl ve 4 western nations
7..women equal status
8 no resrvation and subsidy
9..all are well train 4 work with nation
10 they never follow out dated penal and copy paste constitution..
Raja Krishnan, Trader, Trading Tutor & Mentor (2015-present)
China got a leader like Deng who realised that china needs to be a econimic power if it wants to survive and command world’s respect. But India was not fortunate till Narendra Modi became the PM in 2014. It will take another 25 years for India to achieve something really great. A small beginning has been taken.
To be a big power, India needs to grow economically and militarily.
I do not understand the question.
Actually, China was never colonized. Before People’s Republic of China, there was Republic of China on the main land China. Before Republic of China, there was Qing Dynasty of China. Before Qing Dynasty, there was Ming Dynasty of China…
Purna Varma, former Organic Farmer
China from the outset started with a command economy. India from the outset started with noise and corrupt economy.
S.K. Mani, former Vice President. at Reliance Industries Limited (1986-2004)
It is very difficult to compare India and China for following reasons.
The infirmity of the data in both countries
India’ Data was considered more robust, but in the last five years, due to political interference our data clarity has greatly reduced and many doubts have been expressed of late by independent economists.
Be that it may be, Let us turn to analysing and comparing the economic path of both nations since 1950’s
At the start of our separate paths.
We had similar GDP numbers till 1970 growing at a low rates.
Our Life expectancy was 30 yrs. but China’ was 40 Yrs. clearly advantageous as an average Chinese had 10 more years of working years which meant an Indian had on an average of 10 years of Productive life as against 20 years for a Chinese. This was a huge advantage.
To compare literacy rate, the chinese data available are sketchy, and the best I could get was India’s literacy rate was 17% but the Chinese was somewhere in between 25–30%.
China was never ruled Europeans only won rights trade with China exclusively for some products and most of these rights accrued to British over the period.
Now let us come other economic policies that led to the growth of China
In addition to earlier measures, like low wages, export led production, limited local consumption, restricted urban migration,. They also adopted one Child policy to restrict population boom. They used several measures to a guided economy.
1.They adopted Exchange rate management. They started undervaluing the renminbi which restricted imports and boosted exports.
2.Free repatriation of profits coupled with low wages, low social security burden, high domestic prizes, restricted internal consumption, progressive reduction of welfare measures like free college level education, free medical treatment and withdrawal boosted profits to foreign investors.
3.This led huge inflow of FDI, Huge export surplus, Huge Foreign exchange reserves kept abroad in foreign treasuries at almost nil interest earning. This kept the factories at full capacity and full employment.
4.Normally this would have led to hyperinflation in China, even though China was letting Renminbi rise slowly in a controlled fashion.
5.This led high domestic savings as high as 45–50%. Whereas India’ saving rate hovered between 28–35%.
译文来源：三泰虎 http://www.santaihu.com/p/49933.html 译者：Joyceliu
6.This meant that was always surplus capital money many flowing into unprofitable sectors like loss making public sectors, Grandiose, White elephant infrastructures that yield returns after a long periods like HambanTota in SriLanka or CPEC in Pakistan or link trains to Europe via Central Asian Countries, Ghost cities in China, Bridges over sea, Bullet Trains. whereas we are always capital starved for long term infrastructure capital projects. Our collapse of NBFC’s like ILFS. etc., is because long term projects that cannot be supported by Short term funds.
7.We were playing conventional economics after liberalisation letting exchange float freely to find its own equilibrium. We only controlled capital convertibility and FII remittances in Benami transaction. and avoid criminal rapid speculatory depletion. we did acquire increase Foreign exchange reserves of $ 500 Billion as against 3 Trillion in the case of China. China retained iall in US treasury bonds.
8.By retaining money abroad China avoided High inflation, but we are always torn between high deficit and growth versus High inflation. We are in a such a dilemma today when economic growth is Shrinking.
9.Our projects tend to be smaller, less Grandiose, and appropriate.
China is facing following problems,
1.Excessive debt burden
2.Shrinking working age population
3.Hidden unemployment in public sector projects
4.Old age bulge and huge Geriatric spend.
5.Lack of efficient Projects to invest.
6.Unsecured investments in developing countries with high risk countries.
7.This means need to bolster Military.
8.Increase in local consumption
10.As constant growth is vanishing, panicky investments are happening.
11.As militarisation happens the dangers increase.
12.This called the middle Income Trap.
For India we are facing another sets of problem.
1.We need to boost growth at the cost of inflation.
2.we need to direct it the most affected informal sector which is not visible overly.
3.Greater Rural Vision. Laser like concentration and incentives for diversification and financial security accompanied by real productivity.
4.we have to move away from IMF and world bank direction in macroeconomics.
5.We should destroy crony capitalism followed by all parties, Government interference in business decision.
6.Strict Regulation of financial sectors.
7.we need to emphasise ob GVA and NVA rather than headline growth.
8.Concentrate on Productivity.
9.Skill training will payback faster.