Economic Growth in India and China: A Comparative Study, Volume 1

Ever since the processes of globalization and liberalization were set in motion worldwide at the beginning of the 1990s, the focus and the debate shifted to India and China. Most importantly these two Asian giants are the world’s most populous countries and between them account for 40percent of the world population and about 20 percent of the global economy, based on purchasing power parity. Both are among the world’s fastest-growing economics. Besides, the huge surplus working population in India and China are making it imperative for the rest of the world to recognize these countries’ key roles in the global competitive dynamics. The economic development in these two countries is significant because it would improve the lives of millions of people. As the two countries have different political systems, the development or the reform paths followed by them are different. As per the conventional wisdom, democracy is good for economic development. But, if we compare the Communist China and the Democratic India, China is much ahead of India, which is a paradox to the conventional wisdom. Hence, a better understanding of what made the two countries differ in their economic development will not only add to our knowledge of this area, but also help other countries undertaking similar economic reforms. Understanding the issue of economic development correctly, explaining it, shaping it and managing it are the great tasks before the present generation. Against this background, this book provides a comprehensive overview of the Indian and the Chinese economies and the advantages of economic cooperation as well as the issues and the challenges faced by both the countries.