India's Economy and China's Economy - Essay Example

Looking at this view of his, let us take this stance further by discussing how the divergence and competence of the entrepreneurial forces in India has given it a slight edge over China, when it comes to facilitating environment for the entrepreneurs.. Generally speaking, China is viewed way ahead of India regarding government policy formulation and implementation. China surpasses India with its faster government policies, modern and developed infrastructures and well-versed economic policies.

On the contrary, India is fuddled with slow legal processes, underdeveloped infrastructures and relatively a high rate of illiteracy. Also, the Chinese leadership is making effective steps to “isolate” China from the global downturn, plaguing many economies of the world. However, the Indian government is criticized for adopting a lumbering approach to regain its struggling economy. These discrepancies on the Indian side are reflected in the GDP figures of both the countries. As Schuman (2010) states The World Bank figures has shown that India’s gross domestic product (GDP) has increased only by 6.

4% in calendar 2009, which is far short of the 8.7% rate China announced in mid-January. Although, the above discussed perspectives about both the countries’ economy may show that Chinese economy is in far better shape than India and that could augur well for Chinese entrepreneurs, it may not be the case. Firstly because, surprisingly in recent times, India is emerging as a vigorously energetic economy, as it seems to be rebounding from the global economic downturn with a stronger force. Doubtless to say, the global slowdown would bring serious problems to India, “but the country’s mood has changed fundamentally since the government began opening up the economy in 1991: fatalism has been replaced by can-do optimism.

” (A Special Report, 2009). This optimism is reflected in the entrepreneurial “spheres” in India. That is, In spite of the political and social uphill, the country has started to pitch for entrepreneurialism which is hot on the air, at present. It is obvious that the entrepreneurial activities are indeed reshaping the India’s economy to a far better level. “Tarun Khanna points out that the entrepreneurial spirit is beginning to breathe new life into India’s public sector.” (Watch this Space).

One of the main “catalysts” that is driving entrepreneurship in India than China is the sizable well-educated and confident young population, who want to come up with new businesses. It is evident that the current demographic profile of India would do wonders to the country’s economy. “India is now blessed with a young and growing workforce. Its dependency ratio - the proportion of children and old people to working-age adults - is one of the best in the world and will remain so for a generation”.

(Indian Miracle). Although, China also has a sizable young population, the advantage with Indian young population particularly their budding entrepreneurs is their proficiency of English language and the resultant confident approach with the Western clients. “Indian capitalism is driven by millions of entrepreneurs furiously doing ahead with this task, and thriving small businesses with many world-class ones whose English-speaking bosses network confidently with the global elite.”