China India

1
China - India
An Economic Comparison
2
Contents

• Introduction-India Vs China
• Airports
• Automobiles
• Book Publishing Industry
• Broadcasting
• Chemical Industry
• Commercial Banking
• Communication
• Commodities Production
• Consumption
• Construction sector
• Defense
• Demographic
• Economy
• Electricity
• Exports Imports
• Fibers
• Film Industry
• Fish Production

• Infrastructure
• Internet Usage
• Labor Composition
• Land Area
• Medical Care section
• Metals
• Mining
• Mobile Telephone Usage
• National Parks
• Number of Cars
• Nuclear Power
• Oil Gas Reserves
• Pharmaceuticals
• Rubber
• Sports Goods
• Steel Industry
• Tourism
• Workforce
• Conclusion

3
Introduction India versus China

• The race is on in earnest. Its a fiscal showdown
  with two of the fastest growing economies in the
  world. The Red Dragon and the Four Lions are
  locked in trade and industry combat. From
  competing to be the best in the outsourcing
  industry to capturing the utility manufacturing
  industries, this face-off is enacted on a global
  stage.
• Watched with eagerness from the sidelines by
  established superpowers, The Peoples Republic of
  China and The Democratic Republic of India are
  growing quietly from strength to strength and
  putting their respective countries more on the
  world map now than ever before.
• This presentation is not intended as a political
  comment, but instead focuses on the bare facts of
  the economic status of the two countries and
  their contributions in the spheres of
  manufacturing and industry from a global
  perspective.

4
Airports
5
Automobiles

• China is second only to United States in
  automobiles. Specialists say that the number of
  privately owned cars in China was close to 22
  million at the end of 2006, which makes China the
  second largest auto market in the world, behind
  the USA. At present, there are 30 cars for every
  thousand people in China, which is far below the
  world average of 120 cars.
• India is projected to have the largest number of
  cars in the world - 611 million to be precise -
  by 2050. According to the third BRIC (Brazil,
  Russia, India, China) report from investment
  banking firm, Goldman Sachs, this means every
  sixth car produced in the world will be sold in
  India. Tata Motors, India's largest four-wheel
  automaker, is planning to capitalize on all this
  spreading wealth by launching the Nano for Rupees
  One Lakh. Its sticker price of about 2,500 would
  make it the world's cheapest car. Only eight
  Indians out of every thousand own a car.

6
Book Publishing Industry

• India's book publishing industry is now touching
  the Rs.80 billion-mark. Leisure coffee table
  reading, plush-reading galleries at book stores,
  increased participation of Indian publishers at
  international book fairs and e-books have given a
  big boost to sales. Exports now comprise a
  healthy Rs.4.6 billion compared to Rs.330
  million, way back in 1991.
• China has over 560 publishing houses, which
  publish around 100,000 titles every year. The
  development of periodicals has been amazing. In
  1949, there were only 257 periodicals in China,
  with a total print run of 20 million copies, or
  less than 0.1 copies per capita. After the
  reforms and opening-up, in 1979, the number of
  periodicals rose to 1,470, with a total print run
  of 1.184 billion copies, or one copy per capita.

7
Broadcast
Number of broadcasting stations
8
Chemical Industry

• The Indian chemicals industry started developing
  after the country's independence in 1947. The
  industry has since become a major contributor to
  the economic and industrial development of the
  country. The industry is characterized by
  fragmentation, with the top 10 companies
  contributing only 38 of sales and 45 of profit.
  In October 2006, Singapore-based Sumitomo
  Corporation decided to invest in the Indian
  company Visen Industries, with an aim to increase
  the sales of chemicals for emulsion use in India
  and the Middle East. Further, in September 2006,
  an Israeli producer of fertilizers and speciality
  chemicals, Israel Chemicals Limited (ICL), signed
  a new potash supply agreement with its customers
  in India and China.
• A healthy domestic demand together with cost
  advantages over industrialized Western nations
  has made China a key consumer as well as supplier
  of chemical products. It is currently the world's
  third-largest consumer of chemicals. The country
  is greatly dependent on chemicals imports
  however, as demand is expected to climb further.
  The chemical industry remains uneven, with
  domestic companies accounting for 40 of the
  market. Germany's Bayer is planning to construct
  a chlorine recycling plant at Caojing, Shanghai,
  and also intends to expand the capacity at its
  newly built polycarbonate plant at the same site.
  The Chinese chemical industry is forecast to grow
  at 5 annually to US186.5bn in 2006, to
  US195.8bn in 2007 and to US205.2bn in 2008.

9
Commercial borrowing
10
Communication
Number (in millions)
11
Commodities Production
000 tonnes/year
12
Commodities Production
000 tonnes/year
13
Commodities Production
000 tonnes/year
14
Consumption

• India is increasingly looking like the worlds
  most dynamic beer market, with the last quarter
  seeing market entry announcements or plans from
  three of the worlds leading brewers Denmarks
  Carlsberg, US-based Anheuser-Busch (AB) and
  Belgiums InBev, the last two being the worlds
  leading players in value and volume sales terms
  respectively.
• Chinas food packaging machinery industry, the
  value of which currently stands at US8bn, is
  reportedly growing at 15 annually. While only
  30 of food consumed in China is said to be
  processed, food consumption growth in value terms
  is set to remain very slow. By 2011, per capita
  food consumption is expected to increase by just
  6.5 to a still modest US151.20, suggesting that
  consumers are not going to be switching over to
  higher value processed food en masse.

15
Construction Sector

• India's construction sector has recorded
  phenomenal growth over the past five years, as
  government expenditure on infrastructure projects
  has been on the rise. With the industry expected
  to reach a value of US59.4bn in the current
  year, Government reports forecasts an average
  construction industry real growth of 13.92 for
  the period 2007-2011. The construction industry
  value is forecast to reach US129.38bn in 2011,
  contributing 10.54 to the country's gross
  domestic product (GDP).
• Valued at US150.65bn in 2006 and having recorded
  a growth of 13.2 year to date, the Chinese
  construction industry will grow at an average
  rate of 7.54 in the period 2007-2011 as per
  current reports. Special emphasis is being laid
  on airport development and upgrading work. By the
  end of 2007, China expects to complete work on as
  many as 73 airports, taking the total far above
  the 2006 figure of 147. Moreover, growing tourism
  in China, spurred by the forthcoming Beijing
  Olympic Games (2008), is pushing up the demand
  for hotels and resorts.

16
Defense

• At 1.1mn soldiers, 55,000 naval personnel and
  170,000 airmen, Indias armed forces are
  considered as one of the largest professional
  standing armies in the world. India maintains a
  vital defence import industry and has the
  potential to improve its export market. Prime
  Minister Manmohan Singh is doing a good job at
  keeping India moving forward along the straight
  and narrow path. On one hand he has foreign
  relations to worry about the long-running
  dispute in Kashmir and the advancement of
  relations with China. On the other hand, there
  are domestic issues at play balancing the drive
  for key reforms against opposition forces within
  and outside of the governing coalition.
• Chinas defence industry is becoming more
  sophisticated and is able to provide the Chinese
  Armed Forces, and selected others, with
  high-technology systems. Its potential to export
  such systems may not be seen for a number of
  years until defence reforms are fully underway.
  However, China is able to produce a range of
  defence products at a high enough standard to
  encourage the interest of developing and third
  world countries. The country has over 2 million
  active frontline personnel.

17
Demographic
18
Demographic
19
Demographic
20
Demographic
(age 15 over can read write)
21
Economy
22
Economy
1995 -2005
23
Economy
24
Economy
2006
25
Electricity
26
Exports Imports
US billions/year
27
Fibers
000 tonnes/year
28
Film Industry

• Currently, the size of the Indian film industry
  is estimated to be around 230 billion rupees. It
  produces 800 films in different languages and
  earns nearly 100 million U.S. dollars of foreign
  exchange. The Indian film industry is the largest
  in the world, producing 1200 films in the year
  2002 alone! That works out to a 100 films a
  month, more than 3 films a day! The first
  Indian-made feature film (3700 feet long) was
  released in 1913. It was made by Dadasaheb Phalke
  and was called Raja Harishchandra. The domestic
  film industry presently provides direct and
  indirect employment to nearly 2.5 million people.
  
• The Chinese Film Industry produced 300 films in
  2005. The country achieved a quantum jump in the
  field of cinema in 2006, making it the country's
  most successful year ever. The Chinese Film
  Industry produced 330 feature films in 2006 a
  significant rise over the previous year. The
  cinema industry has never before made so much
  money in 2006, box office revenues rose by
  nearly a third to hit 336 million. And, five of
  the top 10 films shown in 2006 were Chinese, and
  not from Hollywood.

29
Fish Production

• There has been significant growth in fish
  production in the country in the recent years.
  India is now the third largest producer of fish
  and second largest producer of fresh water fish
  in the world.
• Fish production during the year 2004-05 was 63.04
  lakh tonnes comprising 27.78 lakh tonnes of
  marine fish and 35.26 lakh tonnes of inland fish.
  Fish seed production during 2003-04 was 20810.51
  million fry. There has been steady growth in the
  export of fish products. During 2004-05, the
  country exported 4.37 lakh tonnes of marine
  products, which resulted in export earning of Rs.
  6188.92 crores.
• China is the largest producer of fish in the
  world. In 2004, it captured 16.9 million tonnes
  of fish and raised 30.6 million tonnes of fish
  through aquaculture. The countrys marine fishing
  production is made up of small-scale fisheries
  and the State-owned enterprises. The small-scale
  fisheries are especially active in the fishery
  sector, producing an estimated 90 of the total
  seafood supply. However, the State-owned
  enterprises are important in large-scale
  operations. About 90 of all fish and fish
  products are traded in some processed form. Only
  ten percent is sold in a live, fresh, or frozen
  state.

30
HIV/AIDS
2003
31
Industrial Production
million tons/year
32
Infrastructure
33
Internet Usage

• Internet users in India reached 37 million in the
  month of September 2006. During the same period
  the number of active users rose to 25 million,
  according to recently released survey reports
  from the Internet and Mobile Association of India
  (IAMAI-IMRB). The number of users accessing the
  Internet primarily for entertainment was around 9
  percent. The report further showed that online
  transactions (e-commerce) were steadily gathering
  steam. The Young Men, Older Men and Working Women
  segments were the ones using it the most. These
  segments, along with the Non Working Women
  segment, were also using applications like jobs
  and dating sites in significant numbers.
• On September 7, 2007, the China Internet Network
  Information Center (CNNIC) published Survey
  Report on the Internet Usage in Chinese Rural
  Area. This is the first full scale survey report
  published in China regarding the total Internet
  development situation in rural areas of China.
  The report indicates that the number of Internet
  users in Chinese rural areas has exceeded 37
  million, and that their major application is
  online entertainment, which equals the level in
  urban areas. The report shows that by the end of
  June 2007, the number of the rural Internet users
  reached 37.41 million. The penetration of the
  Internet for all 737 million rural residents is
  only 5.1. No one doubts the rural areas in China
  will soon become a huge Internet market.

34
Labour Composition
35
Land Area
36
Medical Care Sector

• The medical care sector in India has witnessed an
  enormous growth in infrastructure in the private
  and voluntary sector. It is estimated that 75-80
  percent of healthcare services and investments in
  India are now provided by the private sector.
  Medical services are available at extremely
  competitive prices encouraging patients not only
  from developing countries but also from a number
  of developed ones to come to India for
  specialized treatment. In Chennai, The Institute
  of Cardio-Vascular Diseases has gained a
  reputation for being one of the most advanced
  centres in the world. The Apollo Cancer Hospital,
  also situated here is the first hospital in the
  country to be awarded the ISO 9002 certificate.

37
Medical Care Sector.contd.

• China's overall market for the medical equipment
  sector is getting stronger. According to the
  statistics, from January through November 2006,
  the export of medical equipments amounted to US
  6,265 billion resulting in a 29.42 increase as
  compared to the same period in the previous year.
  Thermometers made in Shenzhen make up 70 share
  of the world market while 80 of the dentures
  being used in France and Germany are made in
  China. The best know medical institution in China
  is the Cancer Institute Hospital (CIH) a
  national centre of advanced cancer research and
  treatment, which is also rated as the first place
  of cancer prevention and treatment in Asia in
  terms of scale. CIH has been given over 160
  science and technology awards, among which, 58
  percent are at the National-level and
  Ministry-level awards. The field research on
  prevention and treatment of esophageal cancer was
  credited as one of the ten greatest science and
  technological achievements of state level in 1995.

38
Metals
000 tonnes/year
39
Mining

• India has been among the worlds leading mining
  nations, and is endowed with vast mineral wealth.
  As a part of the Gondwana geological landmass,
  India has a strong natural potential for coal,
  iron ore and bauxite. Accounting for about 6 of
  the global resources, current estimates mark
  Indias iron ore reserves at 23 billion tonnes.
  The grade and quality of coal available in India
  may not be top grade, but the nation ranks fourth
  worldwide, with reserves estimated at around
  253.3 billion tonnes.
• China claims to be the worlds third-largest
  mining producer, although most of its companies
  are small in scale. At last count, there are
  approximately 150,000 mining organizations in
  China, of which only around 30 are publicly
  traded. China was the worlds largest producer of
  coal, copper and aluminium in 2006. With an
  estimated output of 224.06 tonnes and with
  consumption in the neighborhood of 300 tonnes in
  2005, the nation currently ranks fourth in the
  world in gold production and is the third-largest
  consumer of this product. It continued this
  strong performance in the first 10 months of
  2006, achieving total production of 190.399
  tonnes.

40
Mining Industry

• The first oil well in India was drilled in
  Digboi, Assam in the 1866 just seven years
  after the first ever oil well was drilled in the
  world in Pennsylvania State, USA in 1859. The
  country is rich in the resources of minerals like
  iron ore, bauxite, manganese, baryte etc. The
  reserves of iron ore, bauxite and manganese
  accounts for nearly 7 per cent, 16 per cent and 6
  per cent respectively of the total known global
  resources of these minerals. India also possesses
  the largest known reserves of barytes in the
  world.
• In terms of scale and magnitude, Chinas mining
  industry ranks third in the world. The country
  has about 80,000 state-owned mining enterprises
  and 200, 000 collectively owned mines. Over the
  years, China has established a mining industry
  system with a complete range of departments
  including geology, production, construction,
  scientific research, design, equipment
  manufacture, management, education and training.

41
Mobile Telephone Usage

• In 2006, India added close to 74 million new
  mobile telephone subscribers, making it one of
  the most attractive markets for mobile telephone
  operators and wireless equipment vendors. The
  major cellular service providers are Reliance,
  Airtel, Vodafone and Tata Indicom. The number of
  wireless subscribers grew 97 percent from 75.94
  million at the end of December 2005 to 149.5
  million subscribers at the end of December last
  year, according to the Telecom Regulatory
  Authority of India (TRAI) in Delhi.
• Despite the increasing number of Chinese phones,
  foreign brands Nokia, Motorola, Samsung and
  Sony Ericsson still dominate the mobile phone
  market in China. According to CCID Consulting,
  these account for more than 70 of all mobile
  phones sold in the first half of 2007. During the
  first six months of 2007, around 248 million
  mobile phones have been produced in China, and
  the figure is expected to exceed 500 million by
  the year end. If the growth continues at the
  expected rate and every indicator points in
  that direction there will be more than 500
  million mobile phone subscribers by the end of
  2007.

42
National Parks

• India has 80 National Parks. The nations first
  national park was established in 1935 as Hailey
  National Park, now known as Jim Corbett National
  Park. The Bharatpur Bird Sanctuary, located in
  the state of Rajasthan, is known as Asias
  largest bird sanctuary.
• There are 186 National Parks in the Peoples
  Republic of China. The Kanas Geological Park, now
  around 1,000 square kilometers, will be expanded
  to about ten times larger in a few years, and is
  expected to replace America's Yellowstone
  National Park, covering an area of about 9,000
  square kilometers, to become the world's largest.

43
No. of Cars
44
Nuclear Power

• India has a flourishing and largely indigenous
  nuclear power program and plans to have 20,000 MW
  nuclear capacities on line by 2020, subject to an
  opening of international trade. It aims to meet
  25 of electricity requirement through nuclear
  power by 2050.
• If the Energy Information Administration's (EIA)
  projections prove accurate, China will rank among
  the world's leading nuclear industries by 2025.
  In 2010, its nuclear capacity will exceed that of
  India. By 2015, China will have more nuclear
  capacity than Canada. By 2020, it will have moved
  ahead of Russia.

45
Oil and Gas Reserves
46
Pharmaceutical

• A highly organized sector, the Indian Pharma
  Industry is estimated to be worth 4.5 billion,
  growing at about 8 to 9 percent annually. It
  ranks very high in the third world, in terms of
  technology, quality and range of medicines
  manufactured. From simple headache pills to
  sophisticated antibiotics and complex cardiac
  compounds, almost every type of medicine is now
  made indigenously.
• China accounts for 20 of the worlds population
  but only 1.5 of the global drug market. As of
  2007, China is the worlds ninth drug market, and
  in 2008 it will become the eighth largest market.
  The Chinese pharmaceutical industry has increased
  with an annual average growth rate of 16.72 over
  the last few decades. The country will remain an
  attractive location to foreign drug companies,
  because it offers many advantages in terms of the
  size of its marketplace, the relatively easy
  access to patients who are available for clinical
  trials, and lower clinical trial costs.

47
Rubber

• India ranks as the third largest producer of
  natural rubber and 4th largest manufacturer of
  rubber goods in the world. The rubber industry
  plays a significant role in the Indian Economy as
  it has a global presence which makes it
  self-sufficient for all its development
  activities. With three plants located in
  Rajasthan, Madhya Pradesh and Karnataka, JK Tyre
  is the largest manufacturer of truck and bus
  tyres in India. The company accounts for nearly
  74 of the total tyre business in India and is
  the largest exported tyre brand from India. It
  was awarded the CAPEXIL's Highest Export Award
  for 1997-97 by FIEO.
• In 2005, rubber, amongst items exported to China,
  reached the highest export turnover with a total
  volume of 250,000 tons, earning US340 million in
  value, an increase of 55 per cent in volume and
  80 per cent in turnover compared with 2004. GITI
  Tyre Group, headquartered in Shanghai, is China's
  largest manufacturer and supplier of top quality
  tyres, with five manufacturing plants in the
  country. It produces a comprehensive range of GT
  Radial brand tyres including car, van, SUV and
  4X4. The Company distributes its products through
  an extensive sales network in China and exports
  to over 80 countries around the World.

48
Sports Goods

• India is fast emerging as an important supplier
  of quality sports goods and toys to the global
  markets. Indian sports goods are being exported
  to more than 100 countries and are in demand in
  some of the most developed nations of the world.
  The main sports equipment exported from India
  include Inflatable balls, Protective Equipment
  for Cricket, Cricket Bats, Boxing Equipment,
  Cricket and Hockey Balls, Bladders, Fishing
  Equipment, Indoor games including Carrom Board
  and Chess, Protective Equipment for Hockey,
  Hockey Sticks. The major manufacturing centers in
  India are in and around the following cities
  Jalandhar Meerut, Delhi, Mumbai, Kolkata and
  Chennai.
• China now makes 30 million clubs each year,
  mostly exported to the United States and Japan.
  The country began making golf clubs on a large
  scale only in the mid-1990s. The United States,
  the biggest golf market, buys 50 million to 60
  million clubs each year, while Japan, Asia's
  largest, has an annual demand of 12 million, say
  analysts. The Tianjin South China Leesheng Sports
  Goods Co (Leesheng) is one of the biggest
  football and sports products manufacturers in
  Northern China. They have 800 full-time employees
  with an annual production capacity up to 1.3
  million pieces. The factory occupies 27,700
  square meters and produces quality rubber
  bladder, which has been certified by FIFA.

49
Steel Industry

• India ranks 5th in world steel production, a
  marked increase from its 7th position in 2006.
  The Government of India anticipates a three-fold
  rise in steel production capacity to 120 million
  tonnes (mt) making India the second-largest steel
  producer in the world by 2016. Dominating the
  Indian horizon is steel giant Tata Steel, whose
  takeover of the UK-Dutch steel company, Corus is
  considered the country's biggest takeover ever.
  Besides, the LN Mittal-owned Mittal Steel has
  acquired French steel company Arcelor to create
  the world's number one steel company, Arcelor
  Mittal.
• China produced 418 million tones of steel in
  2006, which accounted to more than one third of
  the amount of steel produced globally. By the end
  of 2007, Chinas crude steel production is
  expected to reach 460 million tons. Analysts
  believe that even though the steel production in
  China has shown escalating trends in the past two
  years, the local steel consumption will not reach
  its pinnacle before 2010. The Shanghai-based
  Baosteel, China's largest steel maker is one of
  the most profitable steel enterprises in the
  world with an annual production capacity of over
  20 million tons. It ranked 296th on the 2006 list
  of Fortune 500.

50
Tourism
2002
51
Tourism

• The Indian Tourism industry is one of the most
  important export industries of the country.
  Although the international tourist inflow is
  relatively low, India has found tourism emerging
  as an important sector of its economy. According
  to market researchers, in 2006, the total
  in-bound tourists numbered 1.28mn while this
  figure stood at 1.14mn in 2005. The resulting
  foreign exchange earnings were as high as 12 of
  an amount of 1,780mn.
• China received 124 million inbound travelers in
  2006, ranking fourth in the world, according to
  statistics released by China National Tourism
  Administration (CNTA). The figures include
  arrivals from Hong Kong, Macao and Taiwan.

52
Workforce
53
Conclusion

• This presentation aimed to highlight the
  contributions and showcase the amount of vast
  potential that both these countries hold, in as
  concise a form as possible. Of course, in order
  to deal with every aspect of India and Chinas
  Manufacturing Industries, Trade and Commerce
  policies etc. would require a presentation
  several hundred times the size of this one. It is
  our hope that the information contained within
  these slides would be useful to the global
  entrepreneur as well as to students studying the
  two economies.

54
Sources

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• The Hindu
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• Intelligent Investor
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• cbw.com
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