Team Formation Antonio Varela Laura Mundy Patrick Nolan Tejaswi Javagal

The Question..???  Will India and China Keep Growing at the same pace ?  Will the Infrastructure be able to keep up?  Sustainable growth?

A comparison - Similarities  Worlds leading and richest at one time  Reemerging as world powers  strong external positions  low external debt

A comparison - Differences ChinaIndia ManufacturingServices Export drivenDomestic Consumption driven Single Party RuleMulti Party Democracy Liberalization started in 1979Liberalization Started In 1991 Recently Included Into WTOFounding member of GATT/WTO

GDP Growth Rates India China International Monetary Fund India China

Inflation rates India China

China – Roads & Expressways  1.71 million kilometre  adding more than a million kilometres since  19,000 kilometres of Expressways

China – Railroads  102,000 kilometres of operating track  24,000 kilometres electrified  carried 12billion passengers  3.7 billion tons of cargo.

Problem - China  Inadequate infrastructure  Heavily government dependent  Not able to cope with the growth

China -Solutions  Include Private investors  Develop alternate destinations  Leverage its manufacturing powers to grow in services

India – Roads & Railroads  96,000 Kilometers  20,000 Kilometers highways carry 40% of traffic  62,500 Kilometers  Fourth heavily used system  Carries 2/3 rd of freight

Problems  Severe infrastructure bottlenecks  Lack of quality Infrastructure  Low spending on Infrastructure due to high government debt

Solutions  Increase Infrastructure spending  Public - private partnership  Share the risk  Speedy approvals  Cut red tape  Incentives to invest  Develop alternate investment destinations  SEZs

Composition of GDP

The best approach China : Manufacturing  Services = Opportunity  Policies supporting IT/ Services India : Services  Manufacturing = Opportunity  SEZs

Who..??  China: State =>Opportunity for private sector  India: Private Enterprise => Improvements in State capacity

Conclusion  Conditional Yes …!!!!

QUESTION(S)…???