Asian Studies

India and the People Republic of China have been identified as being among the emerging economic superpowers not only in Asia but also in the world (Sohani, 2005). Over the past few decades, these two nations have witnessed a remarkable growth in their production sectors and influence in the international business market. The two emerging economies have a number of similarities. Such include the fact that they have innovative production, foreign direct investment and outsourcing as backbone of their economies (Mahtaney, 2007).

However, there are a number of notable differences between Chinese and Indian economies. Chinese economy has a great influence from its agricultural sector (Sieff, 2009). India on the other side poorly performs in its agricultural sector, which has been identified as inadequate even to sustain the nations population food needs (Sieff, 2009). Other differences include levels of engagement in international business as well as liberalization of their financial and trade sectors. This essay is written as a comparison between India and the PRC as emerging super-powers in Asia and the world.
First is a discussion on the similarities between Indian and Chinese economies. The two nations have similarities in the production, information technology and foreign direct investment sectors (Mahtaney, 2007). The two nations have come out as strongholds for the global information technology industries (Sohani, 2005). According to statistical evidence, China and India are the leading of IT outsourcing services not only in Asia but to the world (Sieff, 2009). Still, due to the influence the nations have brought to the IT industry, many foreign IT firms have invested heavily in these nations. A good example is the ever growing investment by the Microsoft Corporation in enhancing software development in these nations (Sieff, 2009). Due to the intellectual potential their citizens have proved to have, these nations have enhanced their efforts in recognizing and protecting intellectual property rights.

Another similarity is that in these two nation most of the financial and banking systems are owned by the government (Tom, 2005). According to statistical evidence, it has been clearly established that both nation have most financial and banking sectors are fully controlled by the governments thus limiting the involvement of private investors in this economic sector. china for example has the government owning an estimated 98 of banks and other financial institutions while Indian government controls most financial institution include the financial market and the nations national reserve bank (Mahtaney, 2007). The statistics show that the Indian government owns 70 of the nations banking and financial assets (Mahtaney, 2007).

Thirdly is the trend of foreign direct investments in the two nations. Foreign direct investment practices are among the leading source of income in both China and India. Of specific interest in this trend is the IT, telecommunication (Sieff, 2009). However, despite the great potential the foreign direct investments the nations has, the growth of this sector has been significantly hindered by their poor FDI policies. Such include restrictive practices like operational tariffs whose sole aim is to protected internal businesses from outside competition (Roe, Toma,  Yallapragada, 2007).

Production industries are increasingly taking speedy control of Chinese and Indian economic developments. Textile industries from China and India are among the largest contributors in the global markets, with china being the largest export of textile products to the United States (Mahtaney, 2007). The Chinese republic has been ranked the third largest producer of vehicles in the world. Other industries in china include consumable goods and steel industries. India on the other side has extensively invested in the consumable goods industries as well as manufacturing of auto spare parts (Roe, Toma,  Yallapragada, 2007).

Second is a discussion on the differences between Indian and Chinese economies. First on the list is the level of trade and business liberalization between the economies. Over the past few years, the Chinese government has implemented business liberalization policies opening up it economy to engage more international trade (Mahtaney, 2007). It is indeed due to this reason that it international business involvement has received a sharp rise. Investments in India as well as external trade are mainly to be blamed for its delay in appreciating better international trade policies (Roe, Toma,  Yallapragada, 2007). The nation relies mainly on internal trade with only 20 of its GDP coming from external trades.

Another difference is found in their agricultural sectors and their impact to economies. China is a leading exporter of agricultural products such as cotton and rice in the world (Mahtaney, 2007). It agricultural sector plays an important role in its economic worthy. However, India has been ranked among nations whose agricultural sectors are under utilized. This is despite the fact that the sector employs an estimated 60 of the overall population (Roe, Toma,  Yallapragada, 2007). Such have been closely attributed to poor government policies.

In addition, Indian and Chinese are different in terms of their levels in international business engagement. India and China are seen as potential superpower economies. China on has over the last few years heavily invested in international trade with other nations such as America (Sohani, 2005). This is however contrary to India whose contribution in the globe trade is only estimated to be lower than 1.6. Some statistical facts as per 2008 indicate that in 2007 Indias trade with US amounted to about 42 billion as opposed to 405 billion traded between China and America (Sieff, 2009). The same statistics indicated that the trade between the two nations was only 37 billion.

Corruption remains a major problem in India as compared to China. Corruption is the greatest enemy to sustainable economic development in any nation. India received many critics on its anti-corruption policies which are costing the sustainable development of its current booming economy (Tom, 2005). This can be evidently evident from the poor infrastructures which have been blamed to be as result corruption and eminent bureaucracies by public officials. China however has a strong anti-corruption culture as can be witnessed in its laws which dictate punishment through death penalty (Mahtaney, 2007).

Although infrastructure development is a problem in both china and India, the nation of India has its economy greatly compromised by its poor infrastructures. India has poor infrastructural structures which as identified to be among the biggest challenges for the nation in realizing sustainable economic development (Roe, Toma,  Yallapragada, 2007). It has been identified that production industries are faced with serious power back-outs not less than 30 days in annually. In addition, an estimated 40 of homes in India live without mains electricity (Tom, 2005). This problem is worsened by clogged airports and poorly maintained roads.

According the UN, vast majority of Indians are without even basic education. It is only 7 of the population who have university education (Roe, Toma,  Yallapragada, 2007). This has been closely attributed to poor government policies on education. China has however to a bigger extent resolved the problem of illiteracy through its education of compulsory basic education to all its citizens. This gives the nation a competitive advantage in the availability of qualified human resources for its economic growth.

Unemployment is more serious in India than is in the People Republic of China. In India an estimated over 40 of the overall population are not employed (Roe, Toma,  Yallapragada, 2007). Still, of the employed people, the vast majority are employed in the nations poorly established agricultural sector. On the contrary the Chinese nation has significantly promoted formal employment for its people (Mahtaney, 2007). The government is heavily involved in promoting its agricultural sector and other micro-economic sectors for ensuring economic independence for its citizens.

Industrial production approach can still be cited as a difference between China and India.  China has been identified to have well developed industries such as textile, automotive and steel industries as compared to India. Indeed, the Chinese nation as been ranked a leading nation in the metal and textile industries as well as the third largest manufacturer and exporter of automotives (Mahtaney, 2007). In India, most of the technical industries are small scale. Such could be attributed to the fact that most of their products are marketed internally.

In conclusion, India and the People Republic of China economies are increasingly expanding into superpower status. The two nations have heavily invested in changing their governance policies to enhance international business through attracting foreign direct investment and enhanced import and export practices. In my opinion, India and China are quickly emerging as world political and economic powers and their transition is unstoppable.  Despite such concerns, these nations have limited the involvement of private investors in the financial and banking sectors. Other similarities are that IT and textile industries are well established in both nations (Mahtaney, 2007).

However, Indian economy compared to that of China is compromised by a number of factors such as low levels of education and poorly developed andor maintained infrastructures. Unemployment and sustainable food production are key challenges identified for the economy of India. Other notable differences include low levels of international business contribution to the Indian economy as well as the fact that most industries in India are small scale compared to those in China.