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The rise of the Indian and Chinese economies. prospects and potentials - Essay Example

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United States and United Kingdom along with other European countries have seen periods of great growth in their economies and development has also increased in these regions. These countries…
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The rise of the Indian and Chinese economies. prospects and potentials
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The rise of the Indian and Chinese economies. prospects and potentials

Download file to see previous pages... In this paper prospects of these two future economic giants will be discussed along side with their potential to grow. The many factors that make these two countries future contenders for economic supremacy will also be elaborated.
Immediately after the 1949 revolution the economic policies of China were set aiming at lowering consumption and increasing the process of industrialization. With lower expenditure the economy was able to make more and more factories. In 1978 agricultural sector was reformed and private sector was also allowed to function for the first time in China. These economic policies are said to be the major contributor towards the success of Chinese economy. The process of privatization in China has also increased the overall economic activity of the country.
The story of India is not very different China. After independence Indian economy was characterized by extremely protectionist policy. But the policy of liberalization took effect in 1990’s and after that the economy has shown great prospect. Experts name India as the next big economic giant after China. The growth that India has taken in the last decade of 20th century and in the early 21st century is amazing.
The rapid industrialization taking place in the two countries have made their economies so strong that there future is prosperous. The potential of the two countries is great. China is the world’s largest exporter. Its growth in the previous 30 years has been 9.5 percent. India is also known as the second largest growing economy of the world. So the prospects are great for the two economies.
Chinese economy actually benefits from it exports. China imports great quantity of goods and after value addition exports at higher profits. It relies on small profit margins and for this reason it is able to export at low prices. This is something which distinguishes China from other economies. China is able to develop industries for which ...Download file to see next pagesRead More
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