Question

how are economic policies of China different from India?Explain with example

Answer 1

Indian Economy seems to be an open economy after the LPG (Liberalization, Privatisation, Globalisation) reforms of early 90s. Even Before that particularly during Nehruvian era we opted for socio economic policy bring bothe the states and the private sector to join together to bring development in our country. Later on the FDI Foreign Direct Investment were increased and FIPB was abolished in 2017 budget paying way for automatic route approval of FDI and in some cases just the approval from Cabinet Committee on Economic Affairs.

Chinese Economy on the other hand is considered to be a communist and later moving towards capitalist economy. Even now the state has full control on the industries. They have not opened their economy fully. It is very difficult for Indian goods and service to get entry into Chinese market whereas most of the raw materials are imported from China like solar panels which are cheap when compared to Indian made, circuit boards for LED TV, mobile phones etc.