China is not leaving any chance upturned to highlight its ability in software and technology side. China always wanted to compete with world wide markets to raise their position and growth as World leader. China have been wrestling to get into the Indian technology business for some years.
Globalization is the driving force for technology to collaborate worldwide. Globalization encourages the development of knowledge and technology to widen growth probability across the countries.
Basically, both the country have strong foundation in software technology and IT firms contributing their major counterparts in domestic, business, government, finance, banking, education, research and private needs. When it comes to international collaboration, it is different.
China has a wide manufacturing sector so it can be quiet easily seen as the successful possessor. India has already predecessor and taken the lead position in technology. China is following the pace with India and is facing rough competition with India who is already in the front-line.
Chinese are rated high in the record of average IQ in the world that is making them to reproduce the success path of Information technology. The Chinese software companies are involved in internal projects so they remain firm and fixed in the world market competition. The Indian Software relies more on the western outsourcing projects and clients which makes us unsafe in terms of economy and inflation.
India has given a very early introduction to technology and the multi-lingual skills. The ability to converse in English which is recognized world-wide. India does not give any chance to take over India. India is supported with a big backup of young, aspiring engineers and software professionals whose population and demand is increasing each year. China has low score on this, because they do not prefer technology studies.
India has gained loyalty and respect among the world market in a longer span. However, India service provider industries are better than China because they provide services in many languages such as English, Hindi when compared to China which does not consider foreign languages.
Both countries have equally developed web and mobile platforms. There are many successes in both the ends. When it comes to the web and mobile applications the success ladder is same, but the target audience differs majorly.
Again language has become an issue: Indian mobile companies use English common language and other languages to communicate. But China use only Chinese language which targets only china community people. Otherwise in technology basis, the competition and profit is increasing in both the countries.
Let us consider and look out what we can expect from the emerging and the neighborhood countries
1. Economy Growth
Indian economy is estimate to grow upto 7.1 percent in the year 2020 on the back of domestic utilization and venture but the GDP growth is falling down from the 7.4 percent evaluated in January 2019 as per the report given by the United Nations.
The World Economic Situation and Prospects (WESP) 2019 mid-year update reveals that the Indian economy which produces two-thirds of the national output in South-Asia , has enlarged by 7.2 percent in 2018. “Powerful domestic utilization and venture will strive for more growth, which is increased to 7.0 percent in 2019 and 7.1 percent in 2020” the report said.
The evaluations about Indian economy, however, showcase a fall alteration from the economics made in the World Economic Situation and future potential 2019 report revealed in January this year. That report had predicted that India would grow at 7.6 percent in revenue year 2019 and 7.4 percent in 2020.
The report has given a positive note that in spite of the descending growth, India remains to persist in the expanding major economy in the world. In China, the current financial and revenue stimulus package measure are expected to boost domestic requirement, partially balancing the unfavorable impact of trade assessment on overall growth.
The majority economic indicators announced by Beijing insisted the steeping down of China’s economical growth. China’s economy is off to a rough initiative this year, challenging fears of a steep downward, with Beijing’s pro-expanding efforts successfully counterbalancing the trade war effect with the United States.
Chin’s rouch domestic product growth (GDP) enlarged 6.4 percent in the first half of the quarter when compared to the previous year, reported the National bureau of Statistics, striking the researchers target of 6.3 percent and persisting at the top level of Beijing’s domestic product growth range of 6.0 to 6.5 percent for this fiscal year.
The market indicators have also revealed that Industrial productivity, longer term asset investment, retail goods sale, suburban non-employment rate – showed commendable improvement and performance when compare to previous month duration. So, the latter months are expected to become stronger. The Beijing’s statistics report revealed that there will be greater leap in the improvements.
2. Inflation Rate
The inflation rate is the sustained economic growth rate at which the products and services prices increase over time. The Inflation rate increases the living costs and other primary needs required. The inflation rate makes a person to spend more money than in other situation. The inflation makes the currency to get devalued during a specific period.
The Inflation rate in India has risen in terms of consumer price and the rate is 4.6 percent. The inflation rate has remained steady and raised higher than RBI’s 4 percent mark, has been on the rise till 6 percent. The Indian economy has maintained well beyond the RBI expectations.
3. Manufacturing Unit
When it comes to manufacturing sector, China is on the rise. China is the forerunner in producing lot more than India. The manufacturing sector does great job and holds remarkable position among the world economy. China works out in giving best quality operation and rapid production methodologies in generating more products.
It is not a surprising fact that an average number of Chinese employees are able to produce 1.6 times higher output when compared to the Indian worker. This makes a clear verdict that the China as a nation increases its productivity upto 60 percent high.
The Indian manufacturing sector has many challenges and problems. These challenges include inconsistent electricity supply, slow-moving and money-consuming transport systems as well as need and absence of competencies and skills that increase manufacturing productivity.
Considering that a major number portion of these challenges are constructional in nature, it seems beyond belief that India will be able to overcome the challenges in the near future.
4. Workforce
The Indian Economy works on clear strategic benefits when it comes to have the workforce. The Indian Education system was once formed by the British and further there were lot of changes involved. Beginning from the former days, the Indian system and workforce is global by nature. The Indians are very clever and are skilled in speaking multi-lingual languages.
The Indians can speak English fluently, flawlessly and it is so evident that they are recruited in so many foreign companies as well. This skill is making the Chinese professionals to take a tough stand who face mighty challenges in language.
The Indian workforce is known for doing management and high-paid jobs in information technology industry and Business process outsourcing industry and other streams in the IT industry. The Chinese workforce are skilled in doing the unskilled jobs on the business unit.
In effect, the future of the world economy relies with the skilled and knowledgeable jobs, the Indian employee force will see a rise in pre-eminence and distinct position while the Chinese people are trying hard to attain this position
5. Single Child Policy
In current era, China is facing a demographic problem, while many economists call the problem as Demographic Time Bomb. The Demographic Time Bomb reduces and maintains the population count.
For the previous couple of decades, China has been following the one child policy to limit the population. This policy affects the workforce because it is tough to replace the former employees and there are many people out of the workforce than existing inside it. Every Chinese worker need to pay for the value of two Chinese retiring employees.
India, the other neighboring country, is facing a demographic dividend benefit.The Indian nation contains numerous varied, high-skilled workforce. In such a case, the Indian government provide job opportunities for many number of people. Because of the demographic growth, the Indian Economy is supposed to increase more.
It is definitely predictable that there will a lot many people in the workforce, India is self-assured to become an economic superpower force.
6. Business Entrepreneurship
China is still an existing communist country. This gives an understanding that most of the enterprises are run by the China government. The state run organisations are usually not well organized and not inventive. On the other hand, the Indian run organizations is completely based on inventive and new ideology.
The economists say that, the Indian firms and organizations takes better stand in the future against the world level competitors. The businesses which require huge amount of investments I,.e Capital Intensive firms. The Chinese industries capital intensive firms such as coal, cement are going bankrupt and unable to pay their deeds whereas knowledge intense industries are flourishing.
In effect, China and India, the world’s two most popular countries, have a healthy and competitive relationship and bloomed as monetary powers. Both India and China are independent super economic powers contributing towards the world economy. They have success in their own ways, so none of the country is compared less than the other.
Neither China nor India is a threat to each other and other Global countries. However, it is wise to have a healthy competition. We all hope this competitive attitude will develop themselves and the Global economy.