India & China

Complimenting Competencies

MEPP Project

TARUN KSG
VISHAL AGGARWAL
SAURABH THADANI
SRIKANTH KONDURI
VARUN JOSHI

Agenda

Trade relations & Competitiveness

Economic Indicators Fast Facts

Determinants of Competitiveness

Trade
This isStatistics
an example text. Go ahead and replace it

Areas of Imports & Exports

Corporate Income Taxes

Real Estate & Labor Rates

Who will be the winner ?

Source:
http://www.business-standard.com/india/news/india-2nd-in-glob
al-competitiveness/401028/

India Vs. China

Manufacturing Competitiveness Index

Rich Talent Pool of
Scientists
Large, Well-Educated
English Speaking
workforce
Robust democracy
makes it attractive
destination for
manufacturers
R & D capabilities
Place to design,
develop and sell
products

India Vs. China

Fast Facts
ECONOMIC INDICATOR

INDIA

CHINA

1296.09

4909.28

GDP Growth rate

8.9%

9.6%

Total Population in Global

terms

17.5%

21%

Global Trade (US$bn,

2008)

437

2561

World Per Capita Income

Ranking

139th

104th

Total Number of English

Speakers (in millions)

232

10

Global Ranking among

fastest Growing Economies

2nd

5th

Size of the Economy in

global terms

12th

3rd

Number of Workers (in

millions)

500

250

Year 2030 projected GDP

6.59%

7.64%

Gross Domestic Product

(Sub, 2009)

Source: National
Statistical Data http://www.tradingeconomics.com
CAGR

India Vs. China

Bilateral Trade

Source:
indiachina.org

Source: Economics Research International

India Vs. China

Determinants of Competitiveness

M
A
C
R
O
M
I
C
R
O

DETERMINANT

INDIA

CHINA

Politics

Religions, Pakistan,
Frequent Changes (-)

Political Stability (+),

Communist partys
Monopoly(-)

Demographics

Young people allow for

intensive growth provided
education (+)

Ageing Population
Challenges Social Security
System (-)

Fiscal & Monetary Policy

Expansive Fiscal Policy (-),

Relatively Low Debt &
Restrictive Monetary
Deficit (+), Fixed Exchange
Policy (+)
rate regime (-)

External Relations

Trade Balance Deficit (-)

Huge FDI Inflows (+),

Trade Balance Surplus (+)

World Per Capita Income

Ranking

139th

104th

Labor Market

Pressure on Labor markets

is rising (-). Unemp. Rate
4.2% in 2008

Employment in Public
Sector has fallen (-),
Unemp. Rate 5% in 2008

Industrial Structure

High dependence on
Services Sector (-)

Includes high share of

high technology exports
(28% in 2008)

Business Environment

Ranks 89 out of 183 in

Ranks 133 out of 183 in

Source: Indian Embassy

India Vs. China

Mutual Presence

Source: 2point6billion.com 2010 Data

India Vs. China

Imports

Source: 2point6billion.com 2010 Data

India Vs. China

Trade Gap with China

Source: ADB economics Working Paper Series

India Vs. China

Trade Balance as % of GDP

Source: 2point6billion.com 2010 Data

India Vs. China

Trade Statistics

Source: ADB economics Working Paper Series

India Vs. China

GDP Per Capita(in US$)

Source: 2point6billion.com 2010 Data

India Vs. China

Imports from China

Exports to China

Source: 2point6billion.com 2010 Data

India Vs. China

Wholly Foreign Owned Vs. Private Limited

Companies

Source: 2point6billion.com 2010 Data

India Vs. China

Foreign Invested Commercial Enterprises

Vs. Branch offices

Source: 2point6billion.com 2010 Data

India Vs. China

Representative Office Vs. Liaison Office

Source: 2point6billion.com 2010 Data

India Vs. China

Corporate Income Taxes

Source: 2point6billion.com 2010 Data

India Vs. China

Cost of Labor

Source: 2point6billion.com 2010 Data

India Vs. China

Commercial Real Estate Rentals

Source: National Statistical Data http://www.tradingeconomics.com

India Vs. China

Fast Facts 2010 recap

Source: 2point6billion.com 2010 Data

India Vs. China

Who will be the Winner in 2030?

THANK YOU!