India and China: A Tale of Two Emerging Markets

The world of big growing countries looks at India and China as two siblings taking very different paths. How do the two stack up, and why might their futures prove so very different? India and China are both huge, large-population countries. But lately, they’ve been growing in different ways. India seems to be doing better. China is having some troubles.

China’s Challenges

Slowing Growth

The Chinese economy is not growing as fast as it used to. That is due to a couple of reasons, including but not limited to: the housing market is in trouble, which decreases the consumption of money by people; China is not getting along well with some other countries with which it trades; and the government made sudden changes to the rules for businesses, which includes some companies.

Aging Population

China is getting older and less youthful which may make it tough for the country to further develop in the future years.

The Successes of India

Fast Growth

The Indian economy is growing at a very rapid rate. As a matter of fact, it is growing at a speedier rate than any other large economy currently. Some of the reasons for this are:

• The government is loosening its laws and making it easier for businesses to manufacture their goods in India.
• There’s a lot spent on improving the roads, bridges, and important stuff.
• People love the leader most of the time, so that keeps things pretty stable.

Young Population

India is full of young people. That means plenty of people to work and help grow the country for years to come.

What This Means for Money

When people invest money in countries, they look at how well the country might do in the future. Right now, many investors think India will do better than China. That means they’re willing to pay more for companies in India compared to companies in China. It doesn’t mean that companies in China are bad investments; they could be quite good deals considering how inexpensive they are.

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Looking Ahead

India and China are both major developing countries. But they are developing along different lines:

• A young, rapidly growing, India thus seems to have much more in store for the future.
• And: China has some problems, but it is a very large and significant country still.
• For those who invest in emerging nations, perhaps the best rule would be to invest in them both. Then, should one nation find success, the investor will profit, and they are hedged should one of the countries encounter some sort of difficulty.