Five Differences Between India and China

Rajiv Lall, Managing Director and Chief Executive Officer, Infrastructure Development Finance Company (IDFC), was the opening keynote speaker at the India Business Conference 2008. The India-China economy comparison is inevitable in any business conference. As the head of IDFC, Lall talked about India’s infrastructure issues by comparing it to China’s.

Note: I haven’t had the time to figure out how to insert a table within Wordpress, therefore I created an img. Please click thru the img to see full table text.

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Indian government finances 50% of its infrastructure projects. Therefore, India is not as highly levered as China where the govt only invests 16% from the budget and 54% is funded by debt from banks and private sector. However, India has very high subsidies and inefficient distribution system and hence loss-making operations. For e.g. 45% of the total power distributed is lost due to theft (illegal tapping of power lines).

In India, only 44% villages have power. Farmers enjoy subsidies, and power is delivered for free to villages. On the other hand, 99% of China’s villages are powered. Rural taxes are often higher than those in urban areas.

Said Lall, India’s biggest challenge – Leadership. Enough said!

4 Comments

antony  on August 7th, 2008

I want to know the time difference of India and chinna to know the the time of starting of OLYMPICS 2008

Atindriya  on August 29th, 2008

As you wrote: Law No, Order Yes. Another way to say it is that there is no democracy in China. It is a totalitarian regime. When Indian workers protest, generally the authorities listen. Fundamental Rights do have a value in India. In China, when people protest, they get shot down. The citizens down there have no right against the Govt. Got the big idea, buddy?

anand rathore  on September 4th, 2008

diffrence in india&china

Amlan  on January 3rd, 2009

India: 5 men on railway track = disruption of rail service = democracy exists.
We really need to be more ordered and disciplined, cannot promote lack of discipline in the name of democracy. Nobody admires tyrants, same way no-one should admire anarchism in the name of democracy. We can learn good things from China, what is the problem? If we do not admit our problems and try to rectify them, are we in any way better than China?

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