But slowly, sincethe hegemony of the Congress party eroded and gave way to a multiplicity of parties, some purely regional parties, that came to power in the States and shared power at the Centre. The dis-appointing growth rate was compounded by recession which struck in the USA in and spread to the countries of Europe.
And democracy has become more and more messy over the years. This brought about massive expansion of labour intensive manufacturing enterprises.
In India, thanks to poor record of the investigative agencies, political interference, and long winding judicial procedures giving ample scope to the influential to find loopholes, the corrupt are seldom given exemp-lary punishment.
The local party bosses were often accused of nepotism and corruption but frequently proved too powerful to be curbed by the central leader-ship. But apart from the nature of economic reforms and the political system in which they are given shape, there are significant differences in the general tenor of the societies.
But despite the ruthless punishment meted out to the guilty, corruption is still flourishing there! The private sector, India and china comparative economic analysis newly augmented public sector and the cooperative sector particularly in the rural areas constituted the mixed economy.
It does not use brute force to supress dissent but tries to win it over. Another plus factor was the nature of the political system. The Chinese economy under communist rule, which abolished capitalism, was owned and run solely by the state authorities at various levels.
Collective decisions are difficult to take and once taken are questioned by different sections of the society. India, on the other hand, has been a democracy since independence.
On the other hand, India had a mixed economy with central planning. The government of the Congress party at the Centre under Prime Minister Narasimha Rao was a minority government but took a bold initiative to introduce the policy of marketisation, liberalisation, privatisa-tion and globalisation, no doubt, under the pressure of the World Bank and International Monetary Fund.
With the firm grip of the Communist Party, the authoritarian government could take firm collective decisions and carry them out resolutely. In China it meant giving freedom to growers of agricultural produce to sell their output in the market after a certain prescribed quota was delivered to the state authorities.
These enterprises made a significant contribution in increasing the Gross National Income. At the core of economic reforms in both the countries is liberalisation.
The state authorities planned, controlled and regulated the economy. Hence the two countries have become the engine of growth. In the Congress came back to power although forming a coalition government with smaller parties including the Communist Parties.
However, decline in public investment in the agricultural and rural areas meant slower agricultural growth rate. But the nature and processes of liberalisation have been very different as only to be expected since the reforms were introduced in an exciting economic structure which was very different in the two countries.
It was a reversal of the Nehruvian policy of a planned mixed economy, but Narasimha Rao deliberately avoided saying so publicly. They almost started working as private enterprises run on commercial lines.
A similar incentive to state enterprises increased industrial production. The local Communist Party bosses acted like private entrepreneurs.
India was slightly ahead of China in the s but since the s China has surged well ahead of India. As in India, in China too the foundations for growth were down in the pre-reform era that is, before the Deng revolution of Different economic systems in the two countries meant different types of reforms towards liberalisation of the economy.
He can be contacted at e-mail: Corruption has been the concomitant of growth in both the countries. They are still struggling to overcome the effects of recession.
The market incentive gave economic boost to agricultural production and augmented the income of the agricultural community.
In the long run therefore India may well have a more enduring success. The growth in both the countries is attributed to economic reforms. Despite talk of local democracy in the shape of Panchayati Raj Institutions in rural areas and municipalities in urban areas which were given constitutional status in through the 73rd and 74th Amendments of the Constitution, local democracy in India continues to be weak and has neither the resources nor the leadership to contribute to the kind of dynamic economic growth that the local governments in China have done through the setting up of town and village enterprises.
They made deals with private capitalists and gave generous concession to their enterprises by way of land and other natural resources. But that does not mean that a democracy such as India has only negative points.
Both have embarked on economic reforms from the eighties onward.
The foundations were much stronger in China than in India because of much better spread of educational facilities and health services. The success may be limited but is likely to be more sustainable.India and China: Changing Patterns of Comparative Advantage?
India and China, like many other developing countries, chose the import substitution strategy for industrial development. The strategy involved insulation from the world The present paper attempts a comparative analysis of the changing patterns of exports and. Home > Archives ( on) > > China and India â€” A Comparative Study of Economic Growth Mainstream, VOL L, No 17, April 14, China and India â€” A Comparative Study of Economic Growth.
Kumari and Malhotra, Journal of International and Global Economic Studies, 7(2), December68 Trade-Led Growth in India and China: A Comparative Analysis. China and India, A Comparative Assessment. by Charles Wolf, Jr., Siddhartha Dalal, Julie DaVanzo, Meta-Analysis of Economic Growth in China and India.
Appendix B. Detailed Calculations for, and Additional Figures Showing, the Projections in Chapter Four. Appendix C.
Analytic Tables. Asia-Pacific Development Journal Vol. 19, No. 1, June 1 THE ECONOMIC RELATIONS OF CHINA AND INDIA WITH PAKISTAN: A.
Free Essay: Economic models of India and China: Looking back and looking ahead [ words] China and India are two of the world’s oldest civiliza¬tions.Download