It is very difficult to compare the economy of India with China. The entire world is looking to these countries. The GDP growth rate in these countries is really amazing. Both these countries have ancient civilizations and the economies are controlled by number of social and economical factors. The economy of China is more developed than India. India is the 11 the largest economy in case of exchange rates. China is in the second position after U.S. Indian GDP is around $1.3123 trillion where Chinese GDP is around $4.9092 trillion. Indian GDP growth is 8.6% where Chinese GDP growth is 9.6%.

India was under colonial control up to 1947. It really affected the growth of its economy. But china did not face such a situation. In IT/ BPO industry, India has supremacy over China. India’s earning from BPO sector in 2010 were $49.7 Billion, while Chine made $35.76 billion. Seven Indian cities are ranked with the top ten IT cities in the world where there is only one city from China. The infrastructure facilities in China are far better than India. But India is struggling to overcome the situations like poverty, unemployment etc. In agriculture sector, China is more developed than India. Indian farmers are still using ancient techniques while Chinese farmers using a much sophisticated techniques. In case of financial transparency, India is far ahead of China.  According to the market capitalization SSE is ahead of BSE. Indian stock markets are working by the global guidelines while Chinese are working on their government guidelines. Moreover in China, the government is a major stakeholder in most companies. In India the situation is different.  Private players are independent in India.

Now India is the fourth largest economy in terms of domestic purchasing power of Rupee. It is expected that India may overtake Japan, and become the third largest economy by 2012. U.S., China and Japan are in the first three positions. According to the statistics in 2010, Japanese Economy was $ 4.31 trillion and Indian was 4.06 trillion. Tsunami in last March may affect Japan’s GDP growth in 2011. If India reports a growth rate of (7 to 8)  % in 2011, it is enough to overtake Japan. India is watched by the developed countries as a basket of full opportunities. Anyway a change in the number in GDP is not a big matter for Indian people. It is only a matter of statistics. Both India and China gives excellent investment opportunity for the world.