I have been always very much fascinated hearing to this examples of Chinese and Indian Economy; as some where it makes me feel proud to be a citizen of the fastest growing economy. Today had an amazing session in my college on the subject of "International Business"; and again there was a example of India and China being cited when it came to some discussion on GDP and Economic growth.
When I was in school and my intermediate studies, the only competition between India and China I ever heard of was in terms of population. But as I became more matured and as the level of my education increased I came to know that there is a great level of competition between the two in many other different aspects also.
Today after attending a seesion on "International Business", I quickly moved my body to the library of my college and searched for a book on this topic of "India vs China" and finally was able to find one book titled "SUPER POWER" written by Raghav Bahl (Founder of TV 18 now called as Network 18).
I went through the book till evening for around 3 hours and was finally able to understand why people always cite example from the race between India and China. Just try to analyse the structure of this two economies. Both of them are very different; China is an economy which is mostly handled by the government corporations and India on the other hand is very different where the GDP is mostly contributed by the private households and the private industries.
Is Indian economy better or the Chinese?. Perhaps the answer will not be quite as simple as who is investing more and growing today because it depends on a set of factors which are not easy to draw conclusions upon. But today I feel after reading few chapters from the book that, Its not about China versus India but China & India versus the rest of the world. There is a greater shift of economy from the countries like USA, UK, Japan to China and India.
But still the structure between the two economies differs like south and north pole. China on one hand is an economy which has been going rapidly and have a greater amount of human resoruces working as required by the government and Nation; India is one amoung those free democratic economy.
So we never know what will happen in future: will China re-write economic theory (which till now says an economy can develop if people are free and allowed to work privately) or India could blow its chances. But what many happen in future, one thing is for sure, slowly their is an economic shift from far west to this two countries.