Interesting facts about India and India's economy

In the next three years, up to 25% of the world's new workers will be Indian



http://www.businessinsider.com/amazing-facts-about-india-2010-12#in-the-next-three-years-up-to-25-of-the-worlds-new-workers-will-be-indian-1

India's economy

In 1991 free market ideas were initiated for foreign investment and international competition. From 1947 to 1991 social democratic policies governed India's economy. However a revival of recent reforms and better economic policy have drastically accelerated India's economic growth rate and by 2008 India had established itself as the world's second fastest growing major economy. Due to the financial crisis of 2007 - 2010 India's GDP growth rate significantly slowed down, with unemployment rates rising 

India's large service industry accounts for 57.2% of the country's GDP while the industrial and agricultural sectors contribute 28.6% and 14.6% respectively. Agriculture is the predominant occupation in India, accounting for about 52% of employment. 

Major industries include telecommunications, textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, information technology-enabled services and pharmaceuticals. The labour force totals 500 million workers. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo, sheep, goats, poultry and fish and in 2009-2010, India's top five trading partners are United Arab Emirates, China, United States, Saudi Arabia and Germany.

China: Barriers to market entry

Setting up business in China can prove to be extremely lucrative, however due to elements of the once communist gonverment still arife, there can be many restrictions/ barriers to entering a particular market such as :

• Foreign investment sector restrictions (e.g. foreign company cannot operate an online game in China)

• Registered capital requirements (i.e. setting high pay-in amounts for foreign enterprises)

• Indigenous innovation rules (mandating local IP creation for participation in certain government procurement programs)
• These barriers are put up to make it more difficult to operate or start-up business and can be done for many reasons. Maybe foreign products could destroy a new Chinese company and barriers are put up to prevent foreign companies possibly harming this companies sales etc

Implications of China's economic growth

There are many implications of China's rapid economic growth, I shall list a few:

• There is a dependence on strong economic conditions and financial systems elsewhere to provide demand for exports, so if economic conditions change this can affect a large amount of people in China
• With China's economy growing every day, the need for raw materials and energy grows, however as these are mainly finite sources such as oil, coal, natural gas there is not enough to carry on supplying large economies such as china over a long period
• There are vast environmental problems that are almost sure to occur due to the large amounts of oil, gases, petrol etc being burned everyday

China's export rates

China currently had an export growth in 2010 of 31%. However this rate slowed down in spring 2011, Suprisingly import rates had a positive growth in 2011. The current economic global situation is evident through the import and exports of China

How has China built relationships with smaller countries?

As China's economy grows, the need for energy also grows and as fossil fuels are finite China has basically turned to some smaller countries where fuel such as oil is rife and therefore very cheap. By building relationships with these countries China has safeguarded its requirement of energy.

Africa holds a fraction of the world's proven oil reserves—9 percent compared to the Middle East's nearly 62 percent—but industry analysts believe it could hold significant undiscovered reserves. As a result, China is seeking to increase its oil imports from the continent. It now receives about one third of its oil imports from Africa, 9 percent of the continent's total exports in 2006 (by contrast, the United States purchased 33 percent of that year's exports from Africa). China's biggest suppliers in Africa as of 2006 were Angola, the Republic of Congo, Equatorial Guinea, and Sudan. It has also sought supplies from Chad, Nigeria, Algeria, and Gabon.

http://www.cfr.org/china/china-africa-oil/p9557

China: What caused its rapid industrialization?

In the 1960s, around 60% of the Chinese labor force were employed in agriculture. The figure remained more or less constant throughout the early phase of industrialization between the 1960s and 1990s, but in view of the rapid population growth this amounted to a rapid growth of the industrial sector in absolute terms, of up to 8% per year during the 1970s. By 1990, the fraction of the labor force employed in agriculture had fallen to about 30%, and by 2000 still further.
With China going from a communist country to more of a free market economy, restrictions on exports, imports and the amount a certain company could sell was lifted, meaning that companies had a lot more freedom to do exactly what they want. China's government also stated that to be rich is glorious and so many aimed to improve their finances. With exports, imports and amount of produce rising drastically, there was a lot of m,oney to be made and as China has such such a large population, there was also a very large cheap labour force to back up these advances.