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How to make African statehood more successful. Thanks and best wishes, the editorial team Register. You are here Home » Topics » Democracy and the rule of law. Recommend Tweet Send via mail Print. Asian giants. China is ahead of India. In depth Zoom. Together, they account for one third of humankind. Both countries have basically been shaping their fate independently of the imperial powers since the late s. Statistics prove that communist China has outperformed formally democratic India. The budgetary process in India has always yielded to the emotions of the local industry, as in cases where foreign investments are restricted or restricted.
Much of the 60 million Chinese living outside the country are economic forces to be reckoned with. But they also reimburse their country a lot in terms of remittances and investments. China has recognized the importance of its diaspora and has worked to cultivate it. The Chinese government has a special cabinet ministry to affect the Chinese issue abroad. Incentives are offered to non-resident Chinese. Speak Up.
Just like them, anyone can publish on Youth Ki Awaaz. High Savings Rate According to Dewoskin, who has been involved in China for the past 40 years, China has a high savings rate, which recycles and concentrates the wages paid to workers in four large state banks.
For this exercise, we will consider the period from to , but specifically the years between and , when most the FDI went to China, though a small part did come to India as well. What we are concerned with here is the relative assets prices, to see where the investor would get a bigger bang for their buck: India or China?
The table clearly reveals the Chinese currency strategy to outbid India on price. Note at every point from to , the Yuan depreciated much faster against the Dollar than the INR. It was as though the Chinese were determined to keep their assets far cheaper than India, come what may.
We will see the extent of the valuation difference caused, in later graphs. In contrast, the INR today since , for which data is available depreciates faster against the Yuan than it does against the Dollar. The Yuan is presently To put it simply, China outbid us by a huge margin for investment from the US by depreciating its Yuan at a much faster rate than us.
The graphs below tell the story. FDI zoomed in China from onwards, climbing from zero in to as much as 6. The dotted line shows the value of the Dollar in Yuan during the same period, point per point. The impact of the depreciation of the Yuan on the level of FDI attracted is obvious. FDI in India during the same period was between 0. The point is this: If you want FDI, you must lower the price of the assets you offer to investors and you can only lower this price by adjusting the external value of your currency.
Instead, they remain at home, add to the productivity of the economy and create jobs. Any thriving firm is always cash hungry and sucks in far more investment, as time goes by, than the cash that it takes out in dividends. From to October, , Indira Gandhi was in charge.
She was tentatively looking at relaxing economic controls, but nothing much happened. From to , it was Rajiv Gandhi at the helm. He was liberal, but did little liberalisation except for allowing use of computers. He was followed by a clueless government until P. Narasimha Rao comes onto the scene, with Manmohan Singh as the finance minister, from —
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