India and China – I

The Hypothesis

The hypothesis (which you may also like to call a bias) that I am starting with is this. On most of the indicators of Economic Progress China is doing better than India. This is because they have been able to plan through their reforms process better. This ability to plan, in turn, is the result of autocratic governance there. Therefore, there is a question mark on whether the trend will be the same in future. Due to the multi-party democracy, Indian reforms and planning has been often plagued by the short-term vision spanning the term of governments. Also the necessity to be able to achieve a minimum level of acceptance amongst various parties and groups have often stalled important processes here. But it is this same thing, which also gives robustness to the things happening in India. To summarize what I feel about China, given the lack of democracy and lack of freedom of press and speech, I would quote this one like from an article that Priya sent to me

China is a geopolitical problem waiting to happen

Some preliminary numbers

The following comes from a project we did in the last term (Thanks to Divyansh who drew the following charts).







Source: World Bank Site

(If you click on these images, you can see them clearer. I am sorry, but I do not yet know how to make them look all right in the main post itself).

A quick look at these figures will tell us that on almost all the parameters of economic development, China is doing better than India presently. However, look at the variables of “Press Freedom” and “Voice and Accountability”. India is far, far better than India. We are marginally better even in the case of “Rule of Law” and “Control of Corruption”.

The more striking trends can be observed in the rankings of Global Competitiveness Index as published by World Economic Forum. (Thanks once again to Divyansh for taking the pains of gathering this data from Executive Summaries etc. which were available free and making these charts).

The index that is published has actually two indices, in turn comrising of subindices

  1. Growth Competitiveness Index
    • Technology Index
    • Public Institutions Index
    • Macroeconomic Environment Index
  2. Business Competitiveness Index
    • Company Operations and Strategy Index
    • Quality of National Business Environment Index

Growth Competitiveness Index




Business Competitiveness Index





A general trend of India’s situation improving while China’s worsening is obvious from these graphs. And over last few years, India has been able to overtake China is some of the indices. What will be interesting however will be know what is causing it. Unfortunately, I do not have access to the complete report. It would have been nice to be able to delve further into the components of these indices.

Anyway, we will see in due course of time.

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About Jaya

Jaya Jha is an entrepreneur, a techie, a writer and a poet. She was born and brought up in various towns of Bihar and Jharkhand. A graduate of IIT Kanpur and IIM Lucknow, she realized early on that the corporate world was not her cup of tea. In 2008, she started, one of the first print-on-demand publishing platform in India. She currently lives in Bangalore and divides her time between writing and working on her company's latest product InstaScribe ( with a vision to make it the best e-book creation tool. Blog: Twitter: @jayajha Facebook:

2 thoughts on “India and China – I

  1. Comments By: on reaching milestone of 50,000 employees, (precisely
    Infosys Technologies -On technical talent in China, S.D. Shibulal, Head of worldwide sales, said the Chinese engineers lacked in-depth management skills. “Their domain knowledge is also behind. The lead time we have is much more than two years.”

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