China versus India: Market Comparison

China and India: Market Comparison Globalization of Indian companies is always accompanied by numerous opportunities, but there are many risks. Both India and China are very interesting countries. After independence from India in 1947, India became democratic. Since then, until the early 1990s the Indian economy was confused, and many state enterprises, intensive plan and subsidies confirmed this. This led to a sharp contraction of the private sector.

There are many comparisons between Indian industrialization model and Chinese industrialization model. Both countries are aware of the importance of export markets and how to utilize their enormous labor force, so in many ways they can become mainstay in the world market. Compared with Western countries, European countries and European countries have low production costs, so they are optimistic about countries such as India and China. Again, it is a preferred feature that allows the country to establish the economy.

When analyzing the attractiveness of the country to investors, the country's financial market is used as an indicator. Compared with India, the financial market in China tends to fall into a financial crisis. Because Indian financial markets are very resilient, India is more attractive than China. India is 38th and China is 56th in financial market development. India is insufficient as a global indicator, but it shows a higher economic growth rate than other East Asian countries.

India is an important reference point for developing populations like China, which are densely populated. In 2014, 9% of the population of China exceeded 65 years, 17% of the population was between 0 and 15 years old. In contrast, only 5% of India's population is over 65 years old, 29% of the population is under 15 years old. UN projects India will pass through China and by 2022 will become the world's most populous country. In the coming decades, China's aging rate will exceed the aging rate in India, so India may receive "demographic dividend", India's labor force will increase compared to China. Absolutely, the labor age population in India is expected to exceed that of China between 2020 and 2030. This could shift employment in the manufacturing industry from China to India, which is traditionally behind India.