CHESS & CHECKERS

CHESS AND CHECKERS

The whole world is looking at two countries, India & China both Asian countries developing at a pace which no other country expected. India has over 1.2 billion population and world’s biggest federal republic constitutional republic with a G.D.P growth rate of 8.2% has shown to the world what changes mass can bring in an economy. The contribution of service sector in 1990-1991 was only 16% where as it reached to 43% by the end of 2006 and according to the latest statistics it’s more than 46%.

Indian and Chinese are playing an invaluable role in the global innovation chain. Banglore known as “Silicon Valley” of India where spawn companies produce their own chip designs, software’s and pharmaceuticals are one of the most exciting places in the world. Companies like Wipro, Infosys, which started from the ashes are globally recognized now. According to a report in 2004, 70,000 Engineers graduated from the United States, 350,000 from India and 600,000 from China.

China and India are the world’s largest and second largest consumer markets. Investors saw these countries for their low cost, then stayed their for improving the quality of the products now after heavily investing they are investing in innovation. The G.D.P of China is expanding three times as fast and the united states, nine times as fast as their neighbor Japan and seven times as fast as Europe.  According to The Economic Policy Institute, a liberal-leaning think tank in Washington, D.C., said the United States is losing more than 2,000 factory jobs a month because of the shift of work to China." With all this in picture china has emerged as an economic wonder to the world.

According to the statement of Goldman Sachs in 2003 GPD of china would exceed that of United States by 2041 and in 2009 they made a shocking statement that it will not take 2041 it will surpass in 2027 and recently they announced that the pace at which China is progressing, the GDP of china will exceed the US by 2019. Is it true we will see a new economic power as China? India is progressing but China is progressing twice fast in comparison to India. So, are we all ready to see China as next economic power? I know one this if you run too fast, you get hurt more if you fall, so China has to be careful now because its going too fast and if the China’s market fall, only god knows what will happen. The world is not ready to see another slump. At the end I would like to say “Best of luck China, be safe the whole world is watching you”.

Reference:

1.                           "Key Trends in the World Economy: The Central Date for China's GDP to Overtake the US at Market Exchange Rates Is 2019 - a Study of Growth Assumptions and Analyses." Key Trends in Globalisation. 15 Feb. 2011. Web. 07 May 2011. 

2.                           Chhapia, Hemali. "Number of Engineers in India Inflated, Says Study - Times Of India." Featured Articles From The Times Of India. TNN, 6 Mar. 2008. Web. 07 May 2011.