Essay on India China Economic Growth
ESSAY ON CRITICALLY EVALUATE THE MAIN CATALYSTS TO GROWTH IN CHINA AND INDIA.
India with about 1.2 million populations and china with about 1.3 billon population are two big demographic and emerging countries in the world .Over a past few decade Indiaâ€™s combination into the economic has been accompanied by remarkable economic growth (World Bank 2011Â¬).India is having the 3th position on the economy in purchasing power parity (PPP) terms (The Economic Times, 2012). Indiaâ€™s total GDP (gross Domestic Product) growth was 5.5% in 2012 and inflation rate is was .........(The Economist, 2012) .According to government of India poverty has been decline from 37.2% in 2004 to 29.8% in 2010 (world bank 2011).The major economic growth sectors
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Chinaâ€™s early growth was triggered by agriculture growth which increased rate from 2.9 per cent between 1952 and 1979 to around 6.2 per cent after 1979. (Chakrabarti, 2007).About 80% present population hardly living through Collective forms but communal land was leased to individual household and let them to grow crops on their choice and to sell production above the state quota on the free market. It helped to increase agricultural productivity dramatically (IMF, 2012). Before economic reform GDP growth rate was 6% a year but after reform it increased by more than 9% (MFI 1997). About 1.2 billion Chinese peopleâ€™s welfare was phenomenally improved; this may be the enormous worldâ€™s economic success story (Edward 1998).It helped to increase productivity, people sifted from agricultural work from small business in rural areas. Pre reform nearly 4 out of 5 people used to work in agriculture but after reform only 1 in 2 did. Rapid economic growth helped to rising incomes, living standards people had been able to effort luxuries items like TV, Cars etc (presber, Julian, 2011). Next step china begun to reconnecting with rest of the world in 1980, Armed with flexible powers over taxation, modernized business rules, and infrastructure development, helped to attract high amount of investments from abroad. Saving and investment as well as foreign trade have also