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China’s Economic Growth versus India

China economic growth vs. Indian economic growth is a unique scenario. Both of these countries are considered powerhouses in terms of growth rates, yet they are emerging markets. India is one of the fastest growing in terms of population. If you are planning to invest in stocks from either of these countries, you should know what to expect from their economies going forward, which can be hard to see. Nevertheless, comparing China economic growth vs. India growth can show you where to put your investment.

China economic growth is significant. In the last three decades, the country has seen phenomenon growth in their economy, which is the result of new reforms put into place in the late 1970's and the early 1980's. During that time and since, there has been growth that is higher than most other countries. Gross domestic product growth is averaging over 10 percent each year. In terms of size, China has the second largest economy in the world, after the United States. It has a gross domestic product that is higher than $7 trillion for the year 2007. In nominal gross domestic product, it has $3.41 trillion for 2007, which is third in the world behind only the United States and Japan. More so, in the last thirty years, per capita income has grown by 8 percent on average. In terms of growth since 1978, when these reforms began, China's gross domestic product has grown tenfold.

The economy of India is impressive in its own right. It is considered the 12th largest economy in the world. India's gross domestic product is about $1 trillion. Yet, right behind China, the gross domestic product growth rate is a very impressive 9 percent for the fiscal year of 2007 through 2008. In fact, India is considered to be one of the fastest growing economies in the world, right behind that of China. India's growth is important to look at in terms of long term, too. Many economists believe that at the current rate of growth, India will become an important player in the world economy, including having an effect on larger countries as well. Even still, with a low per capital income of just $4,542 the World Bank rates India as a very low-income economy, which could hold it back in some regards.

When you look at China economy growth vs. India, you have to take into consideration that both markets are emerging. Therefore, there is a significant amount of risk when investing here. Yet, both countries have seen this increase in growth steadily over the last few years.

As an investor, take into consideration the benefits of investing in these countries markets. For those looking for a way to break from the United States investments because of the worry of recession and a falling stock market, either the China economy or the India economy should be on your radar. Each offers opportunity, but it is essential to take into consideration the risks that play out here as well.