20937145 is-china-threat-to-india-converted
- 1. I S CHI NA A THREAT TO INDIA Presented by: Abdul Ham eed 01 Honey Bal ani 03 Manish Kamble 16 Rahul Pil l ai 38 Dhiraj Vi nayki a 59
- 2. ECONOMY OF I NDI A §Market based system §Foreign trade and foreign investment as integral part if Indian economy §Fastest growing economy §World’s second largest labor force § §
- 3. ECONOMY OF CHINA §Centrally planned Economy §Private businesses and capitalism were suppressed §Privatization of Farmland §Promotion of foreign investment §Flourishing small scale entrepreneurs
- 4. 50 yrs ago, India and China were among the poorest and economically most isolated countries in the world. How di d Chi na and I ndi a em er ge as economic giants?
- 5. W hat ar e I ndi a & Chi na f am ous f or today?
- 6. GDP – real growth rate: 9.8% (2008) country comparison to the world: 13% (2007) 11.6% (2006) GDP-Per capita (PPP-Purchasing power parity): $6,000 (2008)country comparison to the world: $5,500 (2007) $4,900 (2006) note: data are in 2008 US dollars GDP – composition by sector: agriculture: 10.6% industry: 49.2% services: 40.2% (2008) Chi na – Econom i c Fact Sheet
- 7. I ndi a – Econom i c Fact Sheet GDP- real growth rate: 6.6% (2008) 9% (2007) 9.6% (2006) GDP – per capita (PPP – Purchasing powerparity) $2,800 (2008) $2,700 (2007) $2,500 (2006) note: data are in 2008 US dollars GDP – Composition by sector: agriculture: 17.2% industry: 29.1% services: 53.7% (2008)
- 8. Com par i ng I ndi a and Chi na’s Gr owt h Stories Indicators India China Political System Multi-party Democracy One-party authoritarian rule Speed of Growth Economic reforms started in 1991. Average 6% growth rate in past two Economic reforms started in 1978. Average 9.5% growth rate in past two Areas of Specialization Rdeisciandgesp.owerin software, design, services, and D d e o c m a d i n e a s . n tin mass manufacturing, electronics and heavy precision industry. industrial plants
- 9. Com par i ng I ndi a and Chi na’s Gr owt h St or i es architecture), manufacturing, agro- based industry Indicators India China Gini index (standard measure of inequality) 36.8 47.0 (up 10 points from 15 yrs ago) Foreign Direct Investment 6.8% (up from 0.3% in 2004) 17.8% Future Areas of growth R&D, bio- technology, high- value IT enabled services (legal, medical, engineering IT business, services and continued manufacturing
- 10. Agr i cul t ur e Sector
- 11. Indian Agriculture I n d i a is an agricultural country. G r o w t h ofservice sector is pushing down Contributing 17.2% of the GDP. L a r g e l y depends onmonsoon. Pr o v id e s employment to two-thirds ofthe 1 5 % of export earnings R u r a l women play avital role, 50% of rural Y i e l d s per hectare of crops in India arev e r y
- 12. 13.1 : India's Imports and Exports of Agricultural Commodities vis-à-vis Total National Imports/ Exports During 1990-91 to 2007-08 (Value in Rupees Crore) Year Agriculture Total National %age Agriculture Agriculture Total National %age Agriculture Imports Imports Imports to Total Exports Exports Exports to Total National Imports National Exports 1 2 3 4 5 6 7 1990-91 1205.86 43170.82 2.79 6012.76 32527.28 18.49 1991-92 1478.27 47850.84 3.09 7838.04 44041.81 17.80 1992-93 2876.25 63374.52 4.54 9040.30 53688.26 16.84 1993-94 2327.33 73101.01 3.18 12586.55 69748.85 18.05 1994-95 5937.21 89970.70 6.60 13222.76 82673.40 15.99 1995-96 5890.10 122678.14 4.80 20397.74 106353.35 19.18 1996-97 6612.60 138919.88 4.76 24161.29 118817.32 20.33 1997-98 8784.19 154176.29 5.70 24832.45 130100.64 19.09 1998-99 14566.48 178331.69 8.17 25510.64 139751.77 18.25 1999-00 16066.73 215528.53 7.45 25313.66 159095.20 15.91 2000-01 12086.23 228306.64 5.29 28657.37 201356.45 14.23 2001-02 16256.61 245199.72 6.63 29728.61 209017.97 14.22 2002-03 17608.83 297205.87 5.92 34653.94 255137.28 13.58 2003-04 21972.68 359107.66 6.12 37266.52 293366.75 12.70 2004-05 22811.84 501064.54 4.55 41602.65 375339.53 11.08 2005-06 21499.22 660408.90 3.26 49216.96 456417.86 10.78 2006-07 29637.86 840506.31 3.53 62411.42 571779.28 10.92 2007-08(P) 29777.01 964849.76 3.09 77769.71 640172.14 12.15 P Provisional Source : DGCI&S, Ministry of Commerce, Kolkata.
- 13. China Agriculture accounted for 10.6 % of t h e 3 3 o million- over 45% of labor force still F a r m i n g methods have been improvedin C h i n a produces wheat, rice, potatoes, O n l y 15 percent of the total land available m o r e than 75 percent of the total cultivated
- 14. Variety grain 1978 30,477 2005 50,839 cotton oil-bearing crops 44.4 256.4 216.7 521.8 383.1 2,601. 2 sugarcane sugarbeet 264.2 19.1 2,111.6 270.2 7,470 864 flue-cured tobacco 4.3 105.2 218.5 tea frui t 4.1 120.0 26.8 657.0 67.6 6,237. 6 m eat 220.0 aquatic products 45 856.3 466 5,960. 9 4,122 I ncr eas es i n Out put 1949 11,318 of Maj or Agr i cul t ur al Pr oduct s (10,000 tons)
- 15. Variety grain 1978 30,477 2005 50,839 cotton oil-bearing crops 44.4 256.4 216.7 521.8 383.1 2,601. 2 sugarcane sugarbeet 264.2 19.1 2,111.6 270.2 7,470 864 flue-cured tobacco 4.3 105.2 218.5 tea frui t 4.1 120.0 26.8 657.0 67.6 6,237. 6 m eat 220.0 aquatic products 45 856.3 466 5,960. 9 4,122 I ncr eas es i n Out put 1949 11,318 of Maj or Agr i cul t ur al Pr oduct s (10,000 tons)
- 17. I ndi a’s Manuf act ur i ng Sector Manufacturing contributes around 15% of GDP of t h e According to CSO data quartely estimate of GDPf o r According to the data the cumulative growthin I n the manufacturing sector the value of new project
- 18. I ndi a’s Manuf act ur i ng Sector I n d i a rank’s among top 12 producers of manufacturing I n Textile it ranks 4th after China, US & Italy. I n Electrical machinery & apparatus India ranks 5th. I n d i a holds 6th position in basic metals category. 7 t h in Chemicals & chemicals products, 10th in leather
- 19. I ndi a’s Manuf act ur i ng Sector According to CSO the industrial output clocked anannual T h e r e are many Companies who wants to make India as t h e i r LG wants to make India its global manufacturing hub for its mobile handsets. Hyundai has make India the manufacturing & exporting hub for its small cars. Their i10 is being manufactured only in India & exported to the world.
- 20. I ndi a’s Manuf act ur i ng Sector L u x u r y brands like Louis Vuitton are looking at I n d i a S k o d a Auto plans to make India its regional S a m s u n g plans to invest 100 million US $ in its
- 21. I ndi a’s Manuf act ur i ng Sector S u z u k i too is making India its manufacturing hub for i t s According to Investment Commission of Indiathe Manufacturing sector is the largest employerwhich Employment growth rate is2.78%
- 22. Chi na’s Manuf act ur i ng Sector C h i n e s e manufacturing sector accounts for 43% o f I t s economy growth in average of almost 8% every C h i n e s e manufacturing sector ranks 4th in the w o r l d
- 23. Chi na’s Manuf act ur i ng Sector C h i n a ’ s fast growing domestic marketworldwide Purchasing Manager’s Index (PMI) whichmeasures P M I index rose to 54 points in August up from 53.3 in
- 24. Chi na’s Manuf act ur i ng Sector C h i n a has 50% share of worldwide camera market. & 30% of Air conditioners . 2 5 % of Washing Machines & 20% of Refrigerators. C h i n a ’s crude steel production rose by 28.25%. Investment in chemical industry grew by35.9%.
- 25. SERVICE SECTOR
- 26. v C a n be classified into 2 t y p e s : ü O ld ü N ew v v O l d Services includes: ü P e t t y Trading üDomestic Services üCatering and HotelServices
- 27. v N e w Services includes: üCommunications üBusiness and legalpractices üCulture, research andeducation.
- 28. INDIA v/s China INDIA CHINA 54 per cent of GDP Below 41 per cent of GDP Since 1978 to 2008 : Average Annual Growth rate is 7.0% Average Annual Growth rateis 10.8% Employment Opportunities : High Low Most advanced service sector : Delhi with a GDPshare of 77 per cent Beijing with a GDPshare of 61 per cent Anet exporter of services Anet importer of services
- 29. GDP s har es by s ect or i n China and India
- 30. GDP % Service Sectors China India Australia Korea Japan UK US Finance and Insurance 16.50 13.27 11.83 15.53 9.78 6.89 10.35 Government and Social Organizations 8.01 10.78 6.06 10.47 6.72 6.62 10.35 Real Estate 6.07 11.64 29.15 22.34 30.66 32.16 30.92 Wholesale, Retail Trade and Catering 23.57 30.39 19.15 17.98 18.54 20.81 20.05 Transport, Telecommunications etc 16.96 19.18 12.11 13.09 8.91 10.00 7.89 Transport and Storage 8.76 10.86 Post and Telecommunication s 8.20 8.32 Education, Health, Research etc 28.87 14.73 21.69 20.59 25.40 23.51 20.44 Education, Culture and Arts 8.71 7.98 Health, Sports and Social Welfare 2.96 2.14 Scientific Research and Polytechnic 2.25 0.89 Others 14.95 3.71 Total 100 100 100 100 100 100 100
- 31. Ser vi ce Sect or Shar e over Total GDP
- 32. Econom i c St r uct ur e and Level of Development
- 33. CURRENCIES I NDI A CHI NA
- 34. History of Exchange rate Year 1 INR = CYN % Change 1 USD = INR % Change I USD = CYN % Change 2000 0.1910 43.55 8.2798 2001 0.1774 (7.12) 46.75 7.34 8.2773 (0.20) 2002 0.1714 (3.38) 48.28 7.15 8.2766 (0.20) 2003 0.1723 0.52 48.05 (0.47) 8.28 0.40 2004 0.1817 5.45 45.55 (5.20) 8.2767 (0.40) 2005 0.1912 5.22 43.35 (4.83) 8.2765 0.00 2006 0.1796 (6.06) 44.92 3.62 8.0702 (2.50) 2007 0.1764 (1.78) 44.24 (1.51) 7.8051 (3.28) 2008 0.1853 5.04 39.26 (11.08) 7.2755 (6.78) 2009 0.1409 (23.96) 48.41 23.30 6.8225 (6.22)
- 35. FOREX RESERVES T h e forex reserves of the Republic of C h i n a T h e main factors responsible for t h e
- 36. Interest Rates EFFECTIVE DATE OF CHANGE DISCOUNT ACCOMMODATIONS WITH COLLATERAL ACCOMMODATIONS WITHOUT COLLATERAL 2009-02-19 1.25 1.625 3.5 2009-01-08 1.500 1.875 3.750 2008-12-12 2 2.375 4.25 2008-11-10 2.75 3.125 5 2008-10-30 3 3.375 5.25 2008-10-09 3.25 3.625 5.5 2008-09-26 3.5 3.875 5.75 2008-06-27 3.625 4 5.875 2008-03-28 3.5 3.875 5.75 2007-12-21 3.375 3.75 5.625 2007-09-21 3.25 3.625 5.5 2007-06-22 3.125 3.5 5.375 2007-03-30 2.875 3.25 5.125 2006-12-29 2.75 3.125 5 2006-09-29 2.625 3 4.875
- 37. INDIA AND CHINA IN 2020 According to a recent reportfrom
- 38. THANK