The India China Growth Story

The emergence of India and China as major power centers from the turn of the century and their rapidly growing share in the new order of the world economy caught the attention of the whole world. Both countries showed spectacular growth rates before the onset of the global financial crisis backed by a strong growth in their macroeconomic variables. Interestingly, though growth trajectories of India and China started converging, their fundamental strengths were diametrically opposite. This book showcases a detailed analysis of the growth stories of China and India during the pre-recession period from 2002 to 2007 and the post-recession period from 2008 to 2015 . The story is analyzed through a detailed study of fifteen major macroeconomic variables for each country.
The results emphasize the profound contrasts in the growth patterns of India and China .While most of the macroeconomic variables of India show a significant correlation with the Indian stock markets, almost none of the macroeconomic variables of China have a significant relationship with stock markets of China for period of study. The use of Exploratory Factor Analysis further highlights the stark contrasts in the underlying factors influencing their growth .While the Dragon vs Elephant comparison may be justified based on geographical proximity, their growth stories are as different as chalk and cheese.