Has China or India Achieved More Sustainable Growth? (PDF)

Seminar paper from the year 2012 in the subject Business economics - Economic Policy, grade: 1,0, Copenhagen Business School, course: China, India and the Global Business Revolution, language: English, abstract: Without any doubt has the focus of the world economy shifted from the US, Europe and Japan towards the emergent markets of China and India. Both economies have shown tremendous growth rates over the last years. However are both countries different and have chosen a completely different growth model. While China pursued a top-down investment, FDI and production driven path, focused India on an indigenous, service industry orientated growth model. China was able to outperform India in economic terms so far but which of the both growth models is the more sustainable one? This question is to be answered in this article. In section 2 both growth models will be portrayed. In order to answer the question which model is more sustainable the term of sustainability will be defined at the beginning of section 3 before the three different spheres of sustainability will be analyzed. The paper will end in chapter 4 with a conclusion, which is providing an answer to the original question and will also address future challenges for both countries in order to sustain its growth.