Finance, Forex and Investments

China India impact?

Can somebody tell me what are the impacts of China and India's growing economies on other countries? Also, what are the factors leading to the China and India's economic boom?

Public Comments

1. The impact of China nd iNDIA'S GROWUNG ECONOMIES WILL CREATE CONSIDERABLE demand for goods produced by all countries around the World. They will be buying huge number of aircrafts and super computers every year from the UIS and Europe soon. They will also be buying considerable amounts of agricultural produce and low value added products from poorer countries. These two countries will continue to provide cheap consumer goods and IT-enablesd services to the rich countries and help keep their inflation down. Overall, the high rates of economic growth of India and China will have a very positive effect on the growth of the World economy and reduce the dependence / risk of world economic recession due to recession in the US or other rich economies. However, as per capita incomes in China and India rises, they will consume huge amounts of fossil fuels and petroleum oil that may lead to continuing high fuel price situation and larger emissions to aggravate global warming. This will at the same time lead technologically advanced countries to develop and commercialise and also sell more fuel efficient and alternative fuel technologies and equipment throughout the World. Rich countries need not worry about China and India's economic growth. Because of their very large populations it will take quite a few decades before per capita incomes in these countries come closer to rich country levels. And, when the paer capita Indian and Chinese incomes do rise to decent levels, the rich countries will benefit from greater market opportunities to sell new technology based products and services, provided of course they are able to retain their edge in the fields of scientific and technological progress, innovations and entrepreneurial risk takinf activity. The factors that explains the surge in the economic progress of India and China are essentially their past failure to deliver economic progress to their large populations through closed economies and non-market command economy mechanisms resulting in their going through a rapid process of economic reforms of macr-economic restructuring, micro-economic structural changes, reducing decision making by Govt. dictates and controls, allowing economic freedom to thecitizens, encouraging private initiative and entrepreneurship, introducing/ strengthening market mechanism, opening up the economies to global competetion, privatising monopoly publicly owned industrial and service organisation,etc.. These countries had enormous potential but were not having economic sytems, structures and policies that can help the people of these countries to exploit their potential. Now they are able to do.