Tiger v/s Dragon

Amit Mirani

Fresher

Democratic India v/s CommunistChina. India ranks 2^nd while Chinastands 1^st in comparison of the most populous countries, but by 2030it is estimated to be reverse. In India we have free Judiciary and Press, whichis not there in China. English speakingpeople are far more in India in comparison to China. India is a bottom up expansion, while China is top down expansion, which is worrying issue for China because of their ‘One child policy’.

China started their family planning in 1970, while India started in 1952. In 2001, our birth rate wasnearly thrice China’s birth rate. 27 births per 1000 as against 8.8 for China!India is adding 18 million people per year, against 9 mn per yr in China.

India’sGDP composition for 2007-08 consists of 56% - services, 27% of Industry and 17% from Agriculture while major part of GDP of China comprises of 49.5% of Manufacturing, 39.5% from services and 11%from Agriculture. India attractiveness of FDI investments stands nowhere whilecomparing that with FDI’s investment in China. China has

Shenzhen is the largest SEZ in China and is spread over 49,300hectares while the largest SEZin India, Reliance - Navi Mumbai and Maha Mumbai SEZ, is mere14,000 hectares. Chinese SEZ initiative is government driven, while that of India is private driven. There are 7-8 big SEZ in China, while India has approved more then 250 SEZs.

Walk into any Walmart and you won’tbe surprised to see the shelves sagging with Chinese – made – goods ranging from shoes to garments, toys to electronics with the label “Made in China”. The Chinese manufacturing sector is far aheadthen the Indian Manufacturing and it will surely take a minimum of 2 decades to overcome.While India is superior in Pharmaceutical compared to China.

India has grown @ above 9% for 4consecutive years, while China has been growing @ 11% in the same period.According to World Bank President Robert Zellick China’s growth will hit 8.5% in2009 and accelerate to 9% in 2010, while India’s growth is estimated at 7% –7.5%.

The Chinese banking system ismuch safe now, with none of its exposure to the subprime mess. And with $ 1.4trn in cash i.e Forex Reserves, there’s no liquidity crisis in China, whileIndia has Forex reserves of only $247 bn. In this situation, Warren Buffet’sinvestment in China’s leading car and manufacturing company is an indication of good growth in china.

India’s telecom sector has beenthe fastest growing telecom sector in the world with addition to over 8 mn subscribers every month and the 2^ndlargest wireless network in the world after China with over 315 mobile connections. India is well poised tosurpass 500 mn telephone connections by 2010, while half of the 1 bn global subscribers will be located in China.

China’s stimulus package of $ 586bn which is 16% of their GDP, while India’s package is about $ 6 bn i.e 0.6% ofthe GDP. India has managed to spawn anumber of companies that now compete internationally with the best that Europe and US have to offer. Last yr Forbes 200, an annual ranking for the world’s best small companies, included 13 Indian firms in comparison with only 4Chinese’s firms

According a recent McKinsey global institute report which says “By 2030, 1 bn people in China will live in221 citiies, 170 mass – transit systems couldbe built, 40 bn sq mts of floor space will be built in 5 mn buildings – out ofwhich 50000 would be skyscrapers.

According to Nasscom – McKinsey report China’s government spends 0.24% of China’s GDP on IT, while India spends 0.13% ofIndia’s GDP, while U.S spends 0.35% of it’s GDP on IT. Internet penetration is only 4% in India which is much less then China's Internet penetration.

China has improved just because of it's strong leadership and strategic planning which obviously lacks in India. We hope India will be able to overcome China in the years to come.