INDIA CHINA RELATIONS

Presented by :- Amrita Singh

content

1. INTRODUCTION 2. COMPARING ASIAN GIANTS

INTRODUCTION
China and India: emerging global economic players High economic growth rates Rapidly rising share in world exports Large inflows of foreign investment Engines of demand growth in commodities Positive demographics

COMPARING ASIAN GAINTS

INDIA
Population: 1.15 billion Driving force: Services Largest democracy Capital : New Delhi Liberalization : 1991

CHINA
Population: 1.4 billion Driving Force : Manufacturing Capital : Beijing Liberalization : 1973

EMERGENCE OF THE ASIAN GAINTS

Together account for 2.5 billion people. Engines of growth in the midst of rapid economic transformation in the global economy. Major factors behind the shifting of the global economic focus towards asia.

ECONOMIC INDICATORS
INDICATORS
GDP (Official) GDP (Per capita) PPP GDP (Composition by sector) PUBLIC DEBT

INDIA
$1.38 tr. $ 2900 Agriculture 17.2 % Industry 29.1 % Services 53.7 % 5.1 % of the GDP

CHINA
$4.22 tr. $6100 Agriculture 10.6 % Industry 49.2 % Service 40.2 % 15.7 % of the GDP

ECONOMIC INDICATORS
INDICATOR
Exports Imports Forex reserves Mobile users

INDIA
$ 162 billion $ 260.35 billion $ 249.27 billion 362 million

CHINA
$ 1.427 trillion $ 1.13 trillion $ 1.95 trillion 600 million

COUNTRIES WITH LARGEST EXPORT IN 2010

Country
Germany
china USA Japan France Italy India

Rank
1
2 3 4 5 6 26

Export in 2009
$us 1.53 trillion
$us1.465 trillion $us 1.377 trillion $us 766.8 billion $us 629.8 billion $us 566.1 billion $us 162 billion

Contributio n to GDP
40%
35 % 9.3 % 16 % 21 % 23.5 % 13.09 %

COUNTRIES WITH LARGEST IMPORT IN 2010

Country Rank Import in 2009 Contributio n to GDP

USA Germany China UK France japan India

1 2 3 4 5 6 16

$us 1.9 trillion 15.3 % $us 1.202 trillion $us 1.56 trillion $us 645.7 billion $ us 833 billion $us 696.2 billion $us 287.5 billion 31.5 % 27 % 23.2 % 28 % 24.2 % 23.2 %

CURRENT ACCOUNT BALANCE

COUNTRY
China India

CURRENT ACCOUNT BALANCE

$us 368.2 billion - $ us 38.39 billion

Export items from India to China

Machinery Plastic Ores, Slag, Ash Iron And Steel Metals Organic Chemicals Salt Inorganic Chemicals Cotton and Yarn, Fabric Copper and Articles Thereof

Import items from China to India

Electrical Machinery
Machinery
Plastic Organic Chemicals and Inorganic Chemicals Iron And Steel, Iron/Steel Products Rare Earth Metals Fertilizers

PROBLEMS FACED BY INDIA DURING TRADE WITH CHINA

SERVICES
INDIA
53.7% of GDP US $ 664 billion Employees 28 % of labor force Export oriented Indian edge- IT and ITES

CHINA
40.2 % of GDP US $ 1.7 trillion Employees 37 % of labor force Domestic demand

IT INDUSTRY
INDIA
Total Revenue $71.7bn Growth Hardware Software and services Total export Software and services export 12% $21.1bn $59.6bn $47.3bn $47bn

CHINA
$920bn 12.5% $871bn $49bn $522bn $3bn

INDUSTRY
INDIA
29.1 % of GDP US $ 360 billion Employs 12 % of labor force Domestic demand driven

CHINA
53.7 % of GDP US $ 2.8 trillion Employs 25% of labor force Export driven

AGRICULTURE
INDIA 17.2 % of GDP US $ 213 billion Employs 60% of work force Ranks second in farm output CHINA 10.6 % of GDP US $ 447 billion Employs 43 % of work force Ranks first in farm output

INFRASTRUCTURE
Airports INDIA 346 CHINA 467

Railways Roadways Telephones Mobile users SEZ Internet users Electricity Expenditure

63221 3316452 km 63 40 million 365 million 85 million 665.3bn kwh $500 billion

75438 1930544 km 129 365.4 million 600 million 263 million 3.256tr kwh $ 1 trillion

EASE OF DOING BUSINESS

INDIA
Ease of doing business Starting a business Employing workers Getting credit Paying taxes Closing a business 122 121 89 28 169 140

CHINA
83 151 111 59 132 62

INDIA CHINA TRADE RELATIONS

1984, India china signed a trade agreement which provided for Most favored Nation Treatment. 1994, The two countries signed an agreement to avoid double taxation. 2006, Border trade between India and Tibet after 40 years. Indias export to china - $13.16 billion Indias import from china- $24.43v billion

FUTURE
Require enormous natural resources. Will outsource manufacturing to other resources rich nations especially in Africa. The global integration of China and India will be radically different. Will result in a change in power equations of the world.

FUTURE
China has an aging population. By 2050 India will have 220 million more workers than China China will have to concentrate on their economic software while India more on its economic hard ware. China need to concentrate on innovation while India need to refocus on manufacturing.

TAKEAWAYS
India and China are the fastest growing economies. India driven by service and China by manufacturing. Economic meltdown had a greater impact on China than India. Indias growth model more sustainable than China in the long run.

Mergers & Acquisitions

INDIA CHINA RECENT NEWS