Vidhyaa Sree Vidhyaa Sree is a freelancer/Content Writer and author of

India Vs Chinese Economies Compared

2 min read

The two Asian giants – India and China have shown several developments in different sectors from the early times, which eventually contributed towards a steep rise in the economy of the respective countries. However, when it comes to comparing the economy of both the countries, China usually stays on the top. The economists points out, Chinese Government constantly implies new, which certainly has an impact in the first rising economy. Both the countries are putting in their best efforts to analyze their core economic strengths and gradually establish themselves as the superpower in the World Economy.



With this article, we have tried to compare the Indian and the Chinese economy based on several parameters. The article is also inclusive of the challenges faced by the economy of both the countries.

An overview of the current economic status between India and China
Both China and India accounts for almost 2.5 billion people, and has shown rapid economic transformation in the past few years. As per the recent report prepared by the UK financial services Barclays, due to the economic growth of China and India, Asian economy is no more seeing a hunch.

There are multitudes of factors that play a pivotal role in shaping the economy of both the countries, which would include social, political and other factors. In terms of exchange rates, the economy of China is in the second position, whereas Indian economy is considered as the 11th largest economies in the world.

Here is a short documentary film which compares Indian and Chinese economies. Really a must watch!

Economy of India and China in terms of GDP

India’s estimated GDP is around USD 1.537 trillion, while China is far ahead with GDP of USD 5.878 trillion. It has been observes in the recent past as well that China’s GDP is consistently ahead of India. India is running little behind to china, even when we talk about per capita GDP. Comparing both the Asian countries, China has a labour force of about 813.5 million, while India has almost has half of it with 467 million.

Economy of India and China in terms of Agriculture
In spite of all the differences, Agriculture forms the backbone of the economy in both the countries. China’s agricultural techniques are far more advanced as compared to India, thus it yields better quality crops. The quality agriculture in China contributes to the export of agriculture.
Economy of Indian and China in terms of IT sectors

India has taken its economy to a different level with the IT and the BPO industries. From the BPO sector, India has earned a contributing figure of $49.7 billion, whereas China contributed $35.76 billion.

India, China and FDI
China started off with its liberalization policies and got immense exposure in the global market and started receiving Foreign Direct Investments (FDI’s) since the middle of 1980’s, while the liberalization policies in India got frozen by the 1990’s.

Investments in water management, healthcare management, communication, constant focus on labour and manpower are the core strength areas of China.
Compared to the Indian Capital Market, Chinese market is less predictable and lacks transparency. The Indian stock market is far more grounded and provides a financial transparency. Currently, China is positioned far behind India due to its lack of management reform and somewhere due to its inability to increase acquisitions with different companies across the world, while India is expanding in its mergers as well as acquisition with the numerous international organizations.

Challenges faced by both the countries


  • Over population, eventually results in increasing poverty

  • Lower literacy rates which further creates distinction between the educational opportunities between male and female

  • Unemployment at large rates

  • Lack of infrastructure and proper socio-economic development

  • Low agricultural productivity due to the deficit of advanced technologies

  • Corruption at all levels


  • The expansion in the economy has brought along inflation. Consumer price inflation is expected to cross the threshold in the upcoming days

  • For the growing Chinese economy more power is required

  • Sudden economic slowdown due to the unexpected increase of property prices

  • Unemployment is yet another challenge that the growing Chinese economy is facing

  • Transfer of the political power to the new hands

  • The southern and the eastern region of china has a favourable economic growth whereas the north and the western region lacks income

Reforms needs to be done

Comparing several factors, China and India stands at more or less at the same juncture of economic development. Both the countries are looking forward to approach constructive developmental strategies to increase their effectiveness. While, China has opted for manufacture-led growth strategy, India finds it better to stick to the service based development models for an enhanced growth in economy.

Apart from these strategies, overall encouragement in labour and manpower is required which would further be effective in combating unemployment challenges.

Vidhyaa Sree Vidhyaa Sree is a freelancer/Content Writer and author of

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7 Replies to “India Vs Chinese Economies Compared”

  1. Don’t know how old this article is, but given the GDP numbers, I know it’s a few years old. It’s very, VERY simple to understand how far ahead China is in development over India: hire a cab or drive around Shanghai or Beijing or Guangzhou or Qingdao or Dalian. Then hire a cab or drive around Mumbai or Delhi or Kolkata or or Chennai or Bangalore. Doing that will make one quickly realize how, how far ahead China is in economic development over India.

    1. Indian Government had to learn a lot from Chinese governmet. Check out how the Chinese kids in the village schools are neatly groomed and organized. Indian Goverment have to empower our village kids and infuse lots of confidence inside them.

    2. U should travel the Indian rural areas and small towns also. u definitely will see developments. In India big metro cities are not developing alone, all over lands are shining together. (I don’t know how China is doing in this case) and if you ever visit Kolkata don’t forget the newly built Rajarhat, Newtown, Salt lake city etc areas.

  2. Attention Author: I am a teacher fellow in Benaras Hindu University and trying to write an article on economies of both the countries, Can you help me by sending additional data?

      1. Thanks. I am going through Quandl. If i need further assistance i will contact you.

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