Comparison of The Economies of India and China
The economies of India and China are among the largest economies in the world. However the differences in the size, composition and other quantitative and qualitative features stand in stark contrast when comparing China and India. India, has a much smaller economy, about only a fifth of China's. Its exports are a fraction of China's, as are its imports. India's economy is mostly dependent on its large internal market with external trade accounting for just 20% of the country's GDP. This is a huge difference from China, given just how large a part of Chinas economy is due to International trade. In fact, India's balance of payments (BoP) on its current account has been negative. However this is probably due to its ever increasing oil import bill and its overall Balance of Payments (BoP) was positive since the late 60s due to remittances from Non Resident Indians and increased foreign direct investment.
However, the darker side to blistering growth rates achieved by China is captured by indices of inequality. While the current Gini Index, a measure of inequality of income/wealth, of India is 36.8, the same for China is 46.9, which is remarkably high. However China has successfully reduced the proportion of population living below the poverty line to 10% while India has 22% of its population living below the poverty line. given the sizes of both populations, the difference is massive, and finding the causes of this difference is crucial.
A significant question that many economists have tried to answer is the reason behind China's superlative economic growth. Consensus is now broadly reached with the explanation that it was a combination of several factors, not least the proactive actions of the government, coupled with already favorable historical circumstances that are responsible. China's very strengths in these areas have been India's weaknesses.