India-China greatwall

India – China Great Wall: 

Team 1 Ashish saraf Ashish Mardia Alok sharma Arshad Nadeem Arpana Bharat Patel Deepika Gurmej Ranjith India – China Great Wall

Introduction: 

Introduction High economic growth rates Rapid rising share in world exports Large inflows of Foreign investment Engines of demand growth commodities Positive demographics

PowerPoint Presentation: 

Facts India China GDP $1.43 trillion $5.88 trillion GDP growth 8.90 %(Q2 ) 9.1% Per capital GDP(PPP) $3,176 $ 6,778 Inflation 8.43 %(Dec) 5.1% Labor Force 478 million 813.5 million Unemployment 9.4 % 4.20 % Fiscal Deficit 5.5% 21.5% FDI stock $191.1 billion $100billion Imports 327 billion 1394.83 billion Exports 201 billion $1506.93 billion PPP( purchasing power parity)Rank 4 2 Main data source: CIA World Fact Book 09-10

PowerPoint Presentation: 

INDIA CHINA Reffered as The back office and technology Lab of the world The workshop and Factory of the world Development Strategy Hometown Entrepreneurship Foreign direct Investment FDI Status Low Extensive Domestic Firm Environment Nurturing Environment for domestic firms supported by stronger infrastructure that allows enterprise to flourish Restricted Environment with many obstacles for domestic firms,preventing them from state owned enterprise Development Approach From the ground up Top down approach Legal System Advanced and decent legal system that provides ownership protection for private domestic enterprise Unfair and inconsistent legal system with low political status. Domestic private enterprise are discriminated against several policies and regulations.

PowerPoint Presentation: 

INDIA CHINA Political System Democracy No Democracy Capital Market Allows firm to obtain capital they need to grow. Capital market operated with greater efficiency and transparency. Tightly controlled capital allocation restricting the ability of the private companies to obtain stock market listing and access the money they need to grow. Macro Economic figures (Growth rate and GDP) Low performance High performance Micro Economic Level Full use of resource owned necessary for long term growth Misallocation and insufficient use of resources depending on FDI.

INDIA-CHINA TRADE: 

INDIA-CHINA TRADE The principal items of Indian Exports to China are Indian imports from China electrical machinery and equipment, Ores Slag and ash Iron and steel Plastics Organic chemicals cotton Cement Organic chemicals Nuclear reactors Boilers Machinery Silk Mineral fuels oils

PROBLEMS FOR INDIAN EXPORT TO CHINA: 

PROBLEMS FOR INDIAN EXPORT TO CHINA Lack of information on customs procedures Lack of transparency regarding technical standards Differentiated testing norms for imported and domestic products Frequent change in policies without any advance information on those changes

INDIA-CHINA TRADE ISSUES: 

INDIA-CHINA TRADE ISSUES Chinese plastic toys, which have captured anywhere between 60% and 90% of its $2.5 billion toy market, the Indian government imposed a six-month ban India already has 17 anti-dumping investigations under way into Chinese-made products as varied as penicillin, steel used for car manufacturing

INDIA-CHINA RECENT TRADE: 

INDIA-CHINA RECENT TRADE 300 business executives, many of whom signed deals with Indian firms worth more than $16 billion. The two sides signed six agreements, providing for partnership in banking, green technologies, water resources, media and culture. The agreement on green technologies -to evolve energy efficiency techniques and exploit renewable energy sources. Water resources agreement-China would provide flood season data to manage flows in rivers that flow from that country into India.

INDIA-CHINA RECENT TRADE: 

INDIA-CHINA RECENT TRADE These were an MoU each between Reserve Bank of India and Chinese Bank Regulatory Commission to operate 10 banks from each country EXIM Bank of India and Chinese Development Bank to support investments both ways India's trade deficit with China is by far the highest among its trade partners and could touch $25 billion this year Agreed to the imbalance in trade by providing greater access to Indian pharmaceuticals, IT services and agricultural products

INDIA -STRENGTH: 

INDIA -STRENGTH Jumped from traditional rate of 2-3% growth in past decades to 6-8% decade Strong science and engineering capabilities centered in chemical and software areas. Is becoming worlds service center for software development and back office offshore outsourcing. Is also becoming center for contract innovation work for multinational companies.

Cont’d..: 

Cont’d.. Has network of successful Indians in US and Europe providing links to market, technology, and finance. Is strengthening export orientation, and seeking strategic alliance, but strength is limited more to intangible trade rather than tangibles trade because of high infrastructure and regulatory costs. Has large critical mass of educated ,skilled , and English speaking knowledge workers and can increase this stock.

RECOMMENDATIONS FOR INDIA: 

RECOMMENDATIONS FOR INDIA Importance of investments in high level technical, scientific and managerial capital through network of Indian institutes of technology and Indian management institutes. Importance of turning brain drain to brain gain by harnessing Indian dispersion of population In global high tech industry. Importance of moving from self-reliance to greater international integration to accelerate and sustain growth .

Cont’d…: 

Cont’d… Importance of improving the whole legal and regulatory environment to stimulate greater innovation and get more out of growing critical mass of resource allocates to R&D. Improving infrastructure and education to really emerge as major export power.

PowerPoint Presentation: 

China-EU China-US India-EU India-US India-China The US and EU continue as major powers till the 2030s, after which China will typically lead for up to 50 years, while India comes up from behind

Conclusion..: 

Conclusion.. World is becoming increasingly Competitive Education, Training, and innovation are becoming increasingly elements of competitiveness. China and India are going to be major players in innovation. In longer run India has greater advantage.

Sources..: 

Sources.. China and India global knowledge Economy by Carl Dahlman http://data.worldbank.org/data-catalog http://www.indiachina.org/doing_business/exim_policy.htm http://www.wakeupcall.org/china_india_comparision/china_india_chart.php Exploring Pathways for India and China in the 21st Century 30 th April 2007 by Aromar Revi