Comparison between Indian and Chinese economy on the basis of Population growth

Running head: MANAGERIAL ECONOMICS
Managerial Economics
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1MANAGERIAL ECONOMICS
Comparison between Indian and Chinese economy on the basis of "Population growth"
India and China are two most populous and growing economy not only in Asia, but in the
world also. In 2016, the population of China was 137.87 crores and that of India was 132.42
crores (World Bank, 2018). China is one of the biggest economies of the world with nominal
GDP $12.014 trillion in 2017, and economic growth rate being 6.9% in 2017, on the other hand,
India’s GDP is quite low, only $2.6 trillion in 2017 with a growth rate of 6.74% (IMF.org, 2018).
1986
1990
1994
1998
2002
2006
2010
2014
0
2000000000000
4000000000000
6000000000000
8000000000000
10000000000000
12000000000000
GDP Comparison between China and
India, 1986-2016
China GDP (current US$)
India GDP (current US$)
GDP
Figure 1: GDP Comparison between China and India, 1986-2016
(Source: World Bank, 2018)
Over the past 30 years, the Chinese economy has grown in an extremely rapid pace, as seen from
the above diagram. With the huge growth of population, the Chinese economy focused on
utilizing the labor force into developing the manufacturing sector alongside the agricultural
sector. The private firms in China were more efficient than the public firms and they had