China - India and Development of Global Economy

In the past, we can say India is not much different with Indonesia today. But now India is catch up, as India's government prepares to submit its aproach paper for its 12th five-year plan (a plan which covers years 2012 to 2017), the Planning Commission's focus on instilling “inclusive growth” is making headway. The plan is expected to be one that encourages the development of India's agriculture, education, health and social welfare through government spending. The Prime Minister of India also expected to create employment through developing India's manufactoring sector.

And India will soon have a system in place that will simplify the process of approval for business projects, according to a government official, and it will not only encourage investors to invest in India but also young entrepreneurs to start up their own businesses. But political corruption is stubborn, while both China and India are drawing global investors' attention with their impressive economic performance, prevalent bureaucratic and political corruption has stood out as a negative factor that unfairly affects foreign enterprises and will potentially stifle economic development in the long term.

India has emerged as the preferred destination for many foreign international enterprises due to constructive factors such as high economic growth, fast population growth, English speaking people, and lower costs for workers. Information and communication technologies are most effectively utilized in industrialized nations, where the proliferation of Internet and mobile technology helps economies grow, but according to a report published by the World Economic Forum on Tuesday developing nations such as India and China are catching up sooner than expected.

India and China have been proven to be ready to face International free trade, then it is no wonder if China could be the fastest growing economy in the world, and India be the second. In an interview on BBC Radio 4's Today program on Tuesday morning, British Prime Minister David Cameron openly opposed his predecessor Gordon Brown's campaign to be the next managing director of the International Monetary Fund, instead supporting a candidate from the emerging markets of “India, China, or Southeast Asia.