AN ANALYTICAL STUDY OF

INDIAN ECONOMY IN
COMPARISON WITH CHINA
AND U.S.A Presented byLavkush
Gautam(PGDM)
Akash johar(PGDM)

INFLATION RATE OF INDIA

COMPARE WITH CHINA AND USA
12
11.17
10
9.47

9.13

6.49
6
5.5
4.06
3.15
2

2.41
2.06

1.44
0
2010

CHINA
USA

4.57
4

INDIA

2011

2012

2.51

1.46

1.66

2013

2014

India Vs China

India will need to spend more than $1

trillion on infrastructure with roads requiring
$427 billion, power $288 billion and railways
$281 billion, according to Goldman Sachs.
China's
China spends 11% of its GDP on
infrastructure.
Spending on infrastructure has been
increasing at rate of around 25 percent a
year in recent years.

ADVANTAGES OF PROMOTING INFRASTRUCTURE

People living standards improves

B
E
F
O
R
E

A
F
T
E
R

Core Sector in Indian

economy

Energy
Transport
Communication
Education
Health

Role of Infrastructure in
development

Employment Generation
Urbanization
Attract FDI , PPP Initiatives
Rural development
Entrepreneurship

Problems in Indian economy

Land acquisition
Poor planning and execution
Delays in clearances
Population

COMMUNICATION
Indian growth is barely 2 decades old
in this segment
The nation has tele-density of about
74%
Still nations needs to put in about 1-2
Lakh Crore in 5 year in
communication
This segment is very good example
for other segments, how private
investments properly channelized

ROADS
The 3rd largest road networkin the
world
Road length is good in India, but
road quality is poor. And bad roads
increase fuel consumption, delays
result in higher logistics costs etc.
India needs to invest about
Rs.50,000 crores per year to improve
its road network

COMPARISION OF ROAD LENGTH OF INDIA WITH

CHINA AND USA

6586610
7000000
6000000
48650004356200
5000000
4000000

INDIA
CHINA

3000000

USA

2000000
1000000
USA
0
CHINA
INDIA

RAILWAYS
Railways continue to run as PSU in
India though in some parts goods are
carried in PPP (Public-Private
Partnership).
The segment needs investments of
Rs.6-8 Lakh Crore in next 10 years if
India aims economic growth of 8%9%.

OF INDIA COMPARE WITH CHINA AND USA ( IN SECTO

90
79.7

80
70

64.8

60
50

46.1

43.9

INDIA (%)
CHINA (%)

40

USA (%)
30
21.5
20
10

13.7

19.2

10
1.1

0
AGRICULTURE

INDUSTRY

SERVISE

AVIATION
350 airports
Nation needs to put in about Rs.
150,000 Crore to come up with world
class aviation infrastructure to meet
the growing requirement.

PORTS & MARINE

India has about 7500 Kilometer coast line,
covering Western, Eastern & Southern shores of
India.
There are about 200 Ports, including 13 Major
Ports and 187 Minor Ports.
Major Ports handle about 75% of the cargo
traffic and among major ports, Gujarat &
Maharashtra ports handle about 60% of the
traffic.
Indian Ports need Rs.100,000 Crore worth of
investments.

Total Funding Requirement

India needs about Rs.45 Lakh Crore worth of
funding according to various estimates by
Government of India bodies
However, with recent scams, corruption
charges and poor policy implementation,
funding has become a big challenge for InfraProjects.
Government need to be more transparent and
sincere towards development of Infrastructure
and funding should be through stable long term
means.

Recommendations
India should use PPP model in different
sector to impetus the growth
India have to spend a huge amount in
different sector to give right shape to
economy
Multi-use of resource like land ( land can
be used for roads and bridge)
India should make the things online so that
doing business in India become easy and
we need cut it our red tape from India

Conclusion
India needs to urgently bridge the
infrastructure gaps that industry and
people face every day.

Thank
You