Business Communication.pptx

A ComparativeAnalysis Business Communication PRESENTED BY PRASHANTH MBA, A section, 1st semester

ECONOMIES OF BOTH COUNTRIES Market based system

Centrally planned Economy

Foreign trade and foreign investment are integral part of Indian economy

Private businesses and capitalism were suppressed Privatization of Farmland

Fastest growing economy

World’s second largest labor force

Promotion of foreign investment Flourishing small scale entrepreneurs

50 yrs ago, India and China were among the poorest and economically most isolated countries in the world.

HOW DID CHINA AND INDIA EMERGE AS ECONOMIC GAINTS

What are India & China famous for today?

CALL CENTRES & COMPUTER ENGINEERS

LOW PRICED CONSUMER GOODS

Comparing India and China’s Growth Stories Indicators

India

China

Political System

Multi-party Democracy

One-party authoritarian rule

Speedof Growth

Economic reforms started in 1991. Average 6 %growth rate in past two decades. Rising power in software, design, services, and precision industry.

Economic reforms started in 1978. Average 9.5 % growth ratein past two decades. Dominant inmass manufacturing, electronics and heavy industrial plants

Areas of Specialization

INDIA AND CHINA ECONOMIC FACT SHEET GDP (purchasing power parity)

$23.12 trillion (2017 est.) $21.66 trillion (2016 est.) $20.3 trillion (2015 est.) note: data are in 2017 dollars

$9.447 trillion (2017 est.) $8.852 trillion (2016 est.) $8.265 trillion (2015 est.) note: data are in 2017 dollars

GDP - real growth rate

6.8% (2017 est.) 6.7% (2016 est.) 6.9% (2015 est.)

6.7% (2017 est.) 7.1% (2016 est.) 8% (2015 est.)

GDP - per capita (PPP)

$16,600 (2017 est.) $15,700 (2016 est.) $14,800 (2015 est.) note: data are in 2017 dollars

$7,200 (2017 est.) $6,800 (2016 est.) $6,400 (2015 est.) note: data are in 2017 dollars

GDP - composition by sector

agriculture: 8.2% industry: 39.5% services: 52.2% (2017 est.)

agriculture: 16.8% industry: 28.9% services: 46.6% (2017 e

AGRICULTURAL SECTOR



Growth of service sector is pushing down the contribution of agriculture.

•

33 million- over 45% of labor force still makes living from farming.



Largely depends on monsoon.

•

Farming methods have been improved in China.



Provides employment to twothirds of the total population.

•

China produces wheat, rice, potatoes, peanuts, millet, cotton.

•

Only 15 percent of the total land available in China can be cultivated.

 

15% of export earnings. Rural women play a vital role, 50% of rural labor force.

MANUFACTURING SECTOR • India rank’s among top 12 producers of manufacturing value added products. • There are many Companies who wants to make India as their manufacturing hub, a few examples are: • LG wants to make India its global manufacturing hub for its mobile handsets. • Hyundai has make India i10 is the manufacturing & exporting hub for its small cars. Their being manufactured only in India & exported to the world.

• Its economy growth in average of almost 8% every year. • Chinese manufacturing sector ranks 4th in the world after US, Japan, & Germany. • China has 50% share of worldwide camera market & 30% of Air conditioners . • 25% of Washing Machines & 20% of Refrigerators.

Service sector: since 1978 to 2011: INDIA

CHINA

Average Annual Growth rateis 8.1%

Average Annual Growth rateis 10.8%

Employment Opportunities :

Employment Opportunities : High

Low

Most advanced service sector:

Most advanced service sector: Beijing with a GDPshare of 61 per cent

Delhi with a GDPshare of 77 per cent

A net exporter ofservices

A net importer of services

India’s Problem Infrastructure sector. Insufficient investments. Losing the best and the brightest abroad. Constraint's in labor market needed for manufacturing Industry.

China’s Problem Middle Income Trap (transition from middle income to high income status). Ageing population – Due to "one child" policy. High domestic savings rate and correspondingly low domestic demand.

As China's per capita income rises, its 1.34 billion people will increasingly yearn for real freedom: a free press, an open Internet and, most crucially, democracy.

INDIA AND CHINA IN2020 According to a recent report from international economic think tanks, India and China soon plans to form a trade coalition in Asia and that is projected to boost 65% of world trade by near 2020.Both the countries India and China are determined to achieve that and create a huge impact on world economic bodies.

India’s long-term prospects look Stronger

India is no. 1 talent supplier in the world.

India's advantage in having a large pool of English speaking people. India has the advantage of having a vibrant, energetic and creative NGO sector.

India shouldn’t try to grow as rapidly as China

“Growth has to be aimed within a relevant country context. India has its own unique past, a very different present, and will chart her own version of the future. In that future, the most critical component is to keep democracy safe.”