China Versus India Final

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Running head: INDIA VERSUS CHINA 1

India versus China

Name

Institution

INDIA VERSUS CHINA 2

India versus China

Introduction

China and India are two of the largest countries on the Asian continent by both land size

and population. The two countries share several similarities but also have numerous differences.

Currently, India is an emerging economy, whereas it has the largest economy but is still

considered a developing nation. The predominant economic activity in India is traditional and

modern farming. The primary source of economic growth, however, is the service industry.

China, on the other hand, eradicated collective agriculture in the 20

century to adopt a market-

driven approach to trade, which has precipitated a multifold increase in its gross domestic

product over time.

Comparison of the economies of India and China

Inflation is one of the macroeconomic aspects which influence the economy of a country.

The logic is that the level of inflation determines the economic stability in the country. Financial

stability is an asset that dictates the flow of capital into and out of a country (Madhukar and

Nagarjuna, 2011). Usually, foreign investors prefer to invest in stable countries.

Similarly, economic destabilization, due to high inflation rates, compromises the ability

of the local people to expand their investments in the country. Instead, investors seek better

opportunities outside the country. It is feasible to conclude that it is in the best interest of every

country to manage its rate of inflation to accrue all the benefits of a stable economy.

As of 2017, the inflation rate of India was 3.8% while that of China was at 1.7%. In 2016,

India had an inflation of 4.5% while that of China was 2% (Panat, 2014). By the second quarter

of 2019, China’s inflation was at 2.7%. The Chinese economy is more stable as compared to that

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Running head: INDIA VERSUS CHINA 1 India versus China Name Institution INDIA VERSUS CHINA 2 India versus China Introduction China and India are two of the largest countries on the Asian continent by both land size and population. The two countries share several similarities but also have numerous differences. Currently, India is an emerging economy, whereas it has the largest economy but is still considered a developing nation. The predominant economic activity in India is traditional and modern farming. The primary source of economic growth, however, is the service industry. China, on the other hand, eradicated collective agriculture in the 20th century to adopt a marketdriven approach to trade, which has precipitated a multifold increase in its gross domestic product over time. Comparison of the economies of India and China Inflation is one of the macroeconomic aspects which influence the economy of a country. The logic is that the level of inflation determines the economic stability in the country. Financial stability is an asset that dictates the flow of capital into and out of a country (Madhukar and Nagarjuna, 2011). Usually, foreign investors prefer to invest in stable countries. Similarly, economic destabilization, due to high inflation rates, compromises the ability of the local people to expand their investments in the country. Instead, investors seek better opportunities outside the country. It is feasible to conclude that it is in the best interest of every ...
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