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.

This Video entails some of the ways in which China has now become the largest industry for car manufacturers in the world

China's Population rate

China current has a population of just over 1.3 billion people. China represents 20% of the worlds 6.7 billion population, however China's population growth has slowed since the introduction of the one child policy in 1979. In 1950 China's population was 563 million. The population grew drastically to 1 billion by 1980. China's population is expected to continue rising in number due to high levels of immigration and improvements in healthcare, which have reduced infant mortality rates among and decreased the death rate.
By the late 2010's China's population is expected to reach 1.4 billion. Around 2030, China's population is anticipated to peak and then slowly start dropping

Can China outgrow America?

China's economy is currently growing at 10% per annum, so it is almost inevitable that the Chinese economy will surpass the the American economy, the only question is when will it happen?
According to economists, China's economy should overtake the American economy by 2020 and due to China thriving in the recession compared with the American economy weakening, China's economy could surpass America's in the very near future.
It also estimated that by 2050 India will then overtake China with India's growth rates expected to be as high as China's previous

The Chinese Car market

Last year 13.5 million cars and light trucks were sold in China, making it the biggest car manufacturer in the world. This is not only due to China's large population, but also due to government incentives such as the slashing of sales taxes for smaller fuel efficient cars and the large amount of money spent on building highways and other public works, which in turn means more construction vehicles are need which also adds to the amount of vehicles sold.10.4 million cars were sold in the US last year (the lowest level for 27 years), which has negatively affected many car manufacturers of whom the US was their main market. However China's market grew by 45% year-on-year in 2009, providing a rare glimmer of hope for the world's beleaguered car manufacturers, such as General Motors, Volkswagen and Toyota. Total industry sales fell 21% in the formerly dominant US market, and Volkswagen has said that China is now its biggest market.
China was not expected to exceed the US market until 2020 but the speed with which the recession affected consumers in the States combined with incentives from the Beijing government to help buyers accelerate the trend.

Many economists believe that China's car sales this year could grow by another 20% so long as China's economic recovery continued and oil prices remained stable.

What is GDP?

The value of a country's overral output of goods and services (typically during one year) at market prices excluding net income from abroad. 
(GDP) can be estimated in three ways, how much money was spent, how many goods and services were sold, and how much income (profit) was earned.

Why China is growing so fast

There are many reasons why china is growing so fast. 
Here are some major ones: 
1. China's unique history leading to her current economic miracle. Years of humiliation, suppression, and suffering in the past 100 plus years, most recently the cultural revolution in particular, had immensely steeled the chinese people's determination to never look back and only look forward. It also fueled chinese people's thirst to learn and drive to act.


2. Chinese culture, tradition, and mindset.
Chinese people are in general single-minded and hardworking in their trait as molded by
its culture and tradition. Chinese people are not strictly religious, which allow them to be
open minded. Chinese people value family and fiscal responsibility, which make them
entrepreneurial. Chinese people value education and social status, which provide them
additional drive to excel.


3. China's single-minded government leadership. Single-minded leadership, if steering at the right direction, does allow much faster decision, action, and results. Again, China's unique history made the right direction for the future to be set and not altered.

4. China's cumulative growing productivity, self-confidence, and improving social and
economical environment.

China's Population rate

With just over 1.3 billion people China is the world's most populous country.

As the world's population is approximately 6.7 billion, China represents a full 20% of the world's population so one in every five people on the planet is a resident of China.

However China's population growth has been somewhat slowed by the one child policy in effect since 1979.

As recently as 1950, China's population was a mere 563 million. The population grew dramatically through the following decades to one billion in the early 1980s.

China's total fertility rate is 1.7, which means that, on average, each woman gives birth to 1.7 children throughout her life. The necessary total fertility rate for a stable population is 2.1; nonetheless, China's population is expected to grow over the next few decades. This can be attributed to immigration and a decrease in infant mortality and a decrease in death rate as national health improves.

By the late 2010s, China's population is expected to reach 1.4 billion. Around 2030, China's population is anticipated to peak and then slowly start dropping.

In the next few decades, India, the world's second most populous country is expected to surpass China in population. By 2040, India's population is expected to be 1.52 billion; that same year, China's will be 1.45 billion and India will become the world's most populous country. As of 2005, India has a total fertility rate of 2.8, well above replacement value, so it is growing much more quickly than China.

Mao Zedong

Mao Zedong (Mao Tse-Tung), the son of a peasant farmer, was born in Chaochan, China, in 1893. He became a Marxist while working as a library assistant at Peking University and served in the revolutionary army during the 1911 Chinese Revolution.

Inspired by the Russian Revolution the Chinese Communist Party (CCP) was established in Shanghai by Chen Duxiu and Li Dazhao in June 1921. Early members included Mao, Zhou Enlai, Zhu De and Lin Biao. Following instructions from the Comintern members also joined the Kuomintang.

Over the next few years Mao, Zhu De and Zhou Enlai adapted the ideas ofLenin who had successfully achieved a revolution in Russia. They argued that in Asia it was important to concentrate on the countryside rather than the towns, in order to create a revolutionary elite.

Mao worked as a Kuomintang political organizer in Shanghai. With the help of advisers from the Soviet Union the Kuomintang (Nationalist Party) gradually increased its power in China. Its leader, Sun Yat-sen died on 12th March 1925. Chiang Kai-Shek emerged as the new leader of the Kuomintang. He now carried out a purge that eliminated the communists from the organization. Those communists who survived managed to established the Jiangxi Soviet.

The nationalists now imposed a blockade and Mao Zedong decided to evacuate the area and establish a new stronghold in the north-west of China. In October 1934 Mao, Lin Biao, Zhu De, and some 100,000 men and their dependents headed west through mountainous areas.

The marchers experienced terrible hardships. The most notable passages included the crossing of the suspension bridge over a deep gorge at Luting (May, 1935), travelling over the Tahsueh Shan mountains (August, 1935) and the swampland of Sikang (September, 1935).

The marchers covered about fifty miles a day and reached Shensi on 20th October 1935. It is estimated that only around 30,000 survived the 8,000-mile Long March.

When the Japanese Army invaded the heartland of China in 1937, Chiang Kai-Shek was forced to move his capital from Nanking to Chungking. He lost control of the coastal regions and most of the major cities to Japan. In an effort to beat the Japanese he agreed to collaborate with Mao Zedong and his communist army.

During the Second World War Mao's well-organized guerrilla forces were well led by Zhu De and Lin Biao. As soon as the Japanese surrendered, Communist forces began a war against the Nationalists led by Chaing Kai-Shek. The communists gradually gained control of the country and on 1st October, 1949, Mao announced the establishment of People's Republic of China.

In 1958 Mao announced the Great Leap Forward, an attempt to increase agricultural and industrial production. This reform programme included the establishment of large agricultural communes containing as many as 75,000 people. The communes ran their own collective farms and factories. Each family received a share of the profits and also had a small private plot of land. However, three years of floods and bad harvests severely damaged levels of production. The scheme was also hurt by the decision of the Soviet Union to withdraw its large number of technical experts working in the country. In 1962 Mao's reform programme came to an end and the country resorted to a more traditional form of economic production.

As a result of the failure on the Great Leap Forward, Mao retired from the post of chairman of the People's Republic of China. His place as head of state was taken by Liu Shaoqi. Mao remained important in determining overall policy. In the early 1960s Mao became highly critical of the foreign policy of the Soviet Union. He was for example appalled by the way Nikita Khrushchev backed down over the Cuban Missile Crisis.

Mao became openly involved in politics in 1966 when with Lin Biao he initiated the Cultural Revolution. On 3rd September, 1966, Lin Biao made a speech where he urged pupils in schools and colleges to criticize those party officials who had been influenced by the ideas of Nikita Khrushchev.

Mao was concerned by those party leaders such as Liu Shaoqi, who favoured the introduction of piecework, greater wage differentials and measures that sought to undermine collective farms and factories. In an attempt to dislodge those in power who favoured the Soviet model of communism, Mao galvanized students and young workers as his Red Guards to attack revisionists in the party. Mao told them the revolution was in danger and that they must do all they could to stop the emergence of a privileged class in China. He argued this is what had happened in the Soviet Union under Joseph Stalin and Nikita Khrushchev.