3. About Case
▪ Collection of ideas by
– Diana Farell,Tarun Khanna, Jayant Sinha and Jonathan RWoetzel
▪ Who’s economic policies are leading to better sustainable future?
4. Continue…
▪ Scope
– Countries under study India and China
– Sectors under consideration
▪ Industrial Sector
▪ IT/BPO
▪ Service Sector
6. Timeline
April 1980
• PRC becomes member of the International Monetary Fund
May 1980
• PRC becomes member of theWorld Bank
August 1980
• Creation of the four special economic zones in Zhuhai, Xiamen, Shenzhen,
and Shantou in order to increase Foreign Direct Investment (FDI)
1981
• Household Responsibility Reform: Farmers can retain surpluses from their
individual plots of land rather than surrendering them to the collective.
Increases efficiency
7. Continue...
1984
• Policy to open 14 coastal cities and three regions as “open areas” for
foreign investment. These regions enjoyed less “red tape” and tax
benefits to further attract FDI.
1987
• Thirteenth Congress of the Chinese Communist Party recognizes the
private sector as a necessary supplement to the state sector.
1990
• Stock Markets open in Shanghai and Shenzhen
8. Continue...
1994
• Nation-Wide Liberalization
1995-96
• Reforms in response to the Asian FinancialCrisis
• China providesThailand and other Asian nations with over $4 billion (US)
in aid.
1997
• Price Law passed: Prices will be set by the market, but CCP retains right to
intervene.
9. Continue...
2001
• Nation-Wide Liberalization
2003
• Eliminate price controls to protect domestic industry
• Eliminate export subsidies on agricultural products.
2014
• China Cuts 2014 Economic Growth Estimate to 7.3% From 7.4%
11. Timeline
1952
• India's economy had a 3.8% share of world income.
1973
• India's economy was $494.8 billion, which accounted for a 3.1% share of
world income.
1980-1981
• Economically closed
1991
• Economic Liberalisation was initiated
12. Continue…
2010
• India's economy is $4.002 trillion which accounts for a 6.3% share of
world income, the fourth largest in the world in terms of GDP.
2012
• India's economy is $4.825 trillion, the third largest in the world in terms of
GDP.
2014
• India's economy is $7.376 trillion, the third largest in the world in terms
of GDP.
13. ▪ FDI
▪ Allocation of fund
▪ Social inequalities
▪ Entrepreneurship
▪ Industries
▪ Market
Economic
Comparison
14.
15. IT/BPO
India's earnings from the
BPO sector alone in 2010
is $49.7 billion while
China earned $35.76
billion.
•Process and Quality
•Government Support
•Skilled andTalented Resource
•Education System
16. Service Sector
Service sector counts
54% in Indian economy
where as 41% in
China’s economy
•Average Annual growth rate
•Most advanced service sector
•A net exporter of services
18. Conclusion
CHINA’S APPROACHTOWARDS ECONOMIC
DEVELOPMENT IS AGGRESSIVE
WHERE AS
INDIA’SAPPROACH IS LESSAGGRESSIVEAND IT IS
DEVELOPINGWITHTHE PEOPLE
FINALLY ITWILL BETHETIMETHATWILLTELLWHO
HAS PLANEDTHE JOURNEYTO ECONOMIC
DEVELOPMENT IN BETTERWAY
