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: This paper* to attempts to compare the competitiveness of India and China over the last decade:

China’s GDP was three times that of India in 2007. China’s share of GDP to the world was 10.8%, which was double that of India. The average annual growth of per capita GDP of China was just double that of India in 2007. There was current account surplus for China (9.4% of GDP) against current account deficit for India (-1.1% of GDP). Adult literacy rate was 61% for India against 91% for China during 1995-2005. India and China both had followed centralised planning but China adopted an approach of communism to implement policies, whereas India’s approach was to implement policies in a democratic system. China carried forward the reform process aggressively in 1980s and 1990s, whereas India initiated reform process in 1991 and carried forward moderately. The structure of output in India has moved in favour of services sector from 42.1% of GDP in 1991 to 52% GDP in 2007, whereas in China it has moved in favour of industry from 42.1% of GDP to 48.6% of GDP during the same period. China strictly followed the traditional development model, but India tried to jump from agriculture to services sector resulting in a relatively low manufacturing growth. Manufacturing value-added growth for India was just 6% during 1993-2003, whereas it was 12% for China during 1990-2005. The low manufacturing growth of India resulted in low overall growth of the country.