BizAims

Economic growth is moving rapidly eastward. Place bets on China and India. China's economy growing rapidly, but with its independence from foreign investments can survive only if other economies maintain their attractiveness. India's economy is more self-sustaining, but has a high rate of corruption and rising inflation.

Infrastructure. 11% of China's GDP is spent on infrastructure development, according to Bloomberg, while for India, only 6.5% of GDP goes to infrastructure. India expects to spend $ 1 trillion investment in infrastructure between 2012 and 2017, according to Livemint publication.

Estate bubble. Japanese bank Nomura has predicted that home prices in China will drop by 20% by December 2011, according to Bloomberg. If we add to this property taxes and new rules for payment for the second and third home, China has serious problems in this area. Prices in Mumbai and Delhi in India have doubled since mid-2009.

Domestic consumption. China's export dependence makes it more vulnerable than India. According to Time magazine, about 35% of China's GDP comes from exports. In contrast, India's economy is more insulated from global economic crisis, since domestic consumption is 57% of GDP.

Corruption. Central Commission for  Order Inspection in China took a series of measures to check how officials spend public funds. From 1.43 million claims filed against Chinese officials, only 146,517 have resulted in charges, according to Bloomberg. During the Olympics Games of Commonwealth  the corruption has cost 2.8 billion dollars for the Indian government.  To this is added the scam in telecom that has cost another 39 billion dollars. Activists in India press the government for a obtain a new anti-corruption law.

Poverty. In China about 100 million people  live on $ 2 a day. But most people moved to the category of those who live by 5-10 dollars a day, according to the Wall Street Journal. In case of India, about 650 million people live on $ 2 per day. Unequal distribution of wealth suggest that India's population is more uneducated and more hungry than that of China.

Population. India's population will exceed that of China until 2028. Today China's population, 1.3 billion people, is higher than that in India (1,2 billion). It is estimated that lack of toilets, diseases and deaths will cost about $ 50 billion annually in India.

Inflation. China's monetary policies have led to an inflation rate of 4.6%. India inflation of 8.4% is an imminent threat to the growth rate of GDP of the country. Central Bank of India increased its key rate seven times since March 2010. However, the country still has a food inflation.

Foreign investment. In 2010, foreign direct investment made ​​by China were $ 100 billion. This means that the country will be independent of foreign economies. In India, foreign direct investment were low because of protectionist policies. India allows FDI to 51% for a retailer that has a single brand and does not allow foreign investment for those who have several brands.