Desti, Kannaiah, and Hemalatha, J.N. (2016) Is India really competing with China on a macro economic base. International Journal of Economics and Finance, 8 (11). pp. 150-154.

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Abstract

Macroeconomics has been aptly defined as "the study of the major economic 'totals' or aggregates-- total production (GNP), total employment and unemployment, the average price level of all goods and services, the total money supply, and others" (Gordon, 1978). The word macro is derived from the Greek word macros meaning large.

The economy of India has seen rapid growth in recent years. Spurred by good domestic demand, steady and significant reforms, lower crude prices and increased skilled labor India is the fastest growing economy among the BRICS nations. Another Asian country which is also in the fast lane with respect to macroeconomic growth is China. China's growth has primarily been attributed to a sharp sustained increase in productivity accompanied by increase in capital accumulation, improved infrastructure and cheap labor force (Hu & Khan, 1997).

Both India and China have emerged as significant forces in the global economy over the last two decades. Both countries are geographically very large and have a huge population. Both countries have also achieved remarkable rates of economic growth and poverty reduction since 1980, with India doubling its per capita GDP and China posting a seven fold increase in its per capita GDP (Bosworth & Collins, 2008). A PWC report titled "World in 2050" predicts China and India to be world leading powerhouse economies by 2050.

Item ID:	46195
Item Type:	Article (Scholarly Work)
ISSN:	1916-9728
Keywords:	economy, GNP, BRICS, growth
Additional Information:	Copyright for this article is retained by the author(s), with first publication rights granted to the journal. This is an open-access article distributed under the terms and conditions of the Creative Commons Attribution license (http://creativecommons.org/licenses/by/4.0/).
Date Deposited:	28 Oct 2016 00:24
FoR Codes:	14 ECONOMICS > 1401 Economic Theory > 140102 Macroeconomic Theory @ 50% 14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics @ 50%
SEO Codes:	91 ECONOMIC FRAMEWORK > 9101 Macroeconomics > 910103 Economic Growth @ 50% 91 ECONOMIC FRAMEWORK > 9103 International Trade > 910303 Trade Policy @ 50%
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