Not surprisingly, China scores over India in most segments of the economy. With one exception: notwithstanding the recent collapse of Global Trust Bank, the Indian financial system is healthier.
China leads on all other countsinfrastructure, consumption, trade. China spends eight times more than India on physical infrastructure. Its total capital spending in electricity, construction, transportation, telecom and real estate was $ 260 billion (20.3 per cent of GDP) compared with $ 31 billion (6 per cent of GDP) in India.
Specifically, while China has been investing around $ 24 billion on improving highways, Indias investment in the Golden Quadrilateral is only $ 12 billion. No wonder, the report stresses, the cost of infrastructure services in India is about 50-100 per cent higher than in China.
Apart from exports, Chinas domestic market for products is much bigger than Indias. Penetration rates and per capita consumption are higher in China for most broad-based manufactured consumption items, says Andy Xie of Morgan Stanley, adding that India will need 10-15 years to reach Chinas market size.