Why is China richer than India ?
China is the second largest economy in the world and is economically better then India.
- Chinese goods are sold all over the world, China is famous for manufacturing goods at very large scale and at very cheap price. While in India the goods are not produced and exported (mainly electrical and electronic items).
- It is easier to setup and do business in China as compared to India where there are lot of paper work involved and lot of formalities to be done.
- India imports more , China exports more.
- Government bodies in China are more desciplined and government policies and schemes are implemented effectively while in India most of the policies for the betterment of economy and its people are on the official papers only with no ground implementation.
- At last it is always said “India promises but China deliver“.
- China has a much larger nominal GDP (approx. 10 trillion USD) and is in fact the 2nd largest in the world and just behind USA (approx 17 trillion USD). India (approx 2 trillion USD) is still far behind China.
- China (1.3 billion) has a slightly larger population than India (1.2 billion).
- You see “made in China” goods nearly everwhere, have you even seen a “made in India” good? This means that China exports a lot while India imports a lot.
- China is a country with a communist government, which means that the PRC decides everything themselves while India doesn’t. One government means less conflict.
- China’s economy is growing much faster than India.
Wealth is merely the flow of value and productivity, and societies aren’t simply richer or poorer than others in terms of assets – but merely in how differently they are able to use them to be productive.
So India’s assets are tied up as non-productive assets owned by its society and not its government, like land, precious metals or hydropotential (for example) etc. China’s assets were not fully owned by the people, but by its government and it was able to use then without blow back, because of martial diktat/law.
For the most part their income levels were very similar till early 1990s, and India isn’t actually standing still either. But India’s growth is definitely demand-based and its growth is slower because several hundred million people are not so productive. Nothing can be said for certain until China transitions to a free-market model, either.
- China has more resources than India as it is forcefully occupying Tibet, Inner Mongolia, Eastern Turkistan.
- China has better policies than India to monitor the expenditure of the money government grants, so less possibility of corruption and better control.
- China actually has punishment if you do something wrong, India’s law system is just for the books. People will do any crime they want and get away with it. The case will go on for years without any result (to time constraint).
- China has controlled it’s population crisis which India didn’t.
India do not have much manufacturing in India, most of the things are mainly assembled only (which I think is about to change because of “made in India” policy) if it’s implemented correctly.
I believe a good dictatorship is better than a bad democracy, this is the reason for this rapid growth of China.
This is totally from an economical perspective but India has many things better than china especially liberty.