Economics Pres Cent at Ion Word 2007

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    By,

    ANAS KALLINGAL

    1st MBA , GRDIM

    COIMBATORE

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    IntroductionPower sector

    Education systemOil & gas sector

    Port and shipping

    Agriculture Infrastructure

    Service industry

    Role of FDITrade patterns and policies

    conclusion

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    introductionHigh economic growth rates

    Rapid rising share in the world

    Large inflows of FDI

    Engines of growth in commodities

    Positive demographics

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    Observation China and India together accounts 37.5% of worlds

    population and 6.5% value of world output andincome at current prices and exchange rates.

    China opened up its economy on 1978 and India did soin 1991.

    Since India & China same kind of labor force both

    countries follow the same path of growth and both arelittle bit controlled economy form.

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    Observation China managed to have a great infrastructure at the

    early 1990s,india on 2000s

    FDIs begin to jump in at 1990s in China and in Indiaafter 2000.

    China got almost homogeneous culture and India gotdiversified.

    GDP of China was 9.8%(2008),13%(2007),11.6(2006)

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    Observation GDP contribution by sectors for the year 2008 was as

    follows

    Agriculture 10.6%Industry 49.2%

    Service 40.2%

    China got one party authoritarian political system

    Speed of growth was at an average of 9.5% for pastthree decades.

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    ObservationArea of specialization is mass manufacturing

    electronics and heavy industrial plants.

    FDI in China is 17.8% and that in India its6.8%.

    China looking to dominate areas like ITbusiness, service and also in manufacturing.

    China has a weak banking and legal sector.

    China people are weak in English its a majordrawback.

    China got large infrastructure investment whilecomparing to India.

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    Observation China got 99.1% literacy rate adult literacy rate is 91%

    but in quality education they are weak.

    China got oil and gas reserves higher than India Import export of china was 424.59b$-95.41b$ and for

    India it was 130.36b$-13.94b$.

    China got port capacity of 5.6btpawhile India have

    only .75btpa

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    Observation China got a classic pattern of moving from primary to

    manufacturing sector it doubled its work force and ittripled its share of out put.

    China got rapid export growth and aggressive increaseson world market shares due to cheap labor and heavilysubsidized infrastructure.

    Officially in China only 4% under poverty andunofficially it will be 12% while in India it will be 26-34%

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    Conclusion Mostly India and China will develop in a similar matter

    and may become world super powers of the world inthe near future.

    Both countries may have to face power shortage in thefuture.

    Competition will not be India vs. China but it will be

    India & China vs. developed countries.

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    Thank you

    .