INDIA Vs CHINA ECONOMY

Making an in depth study and analysis of India vs. China economy seems to be a very hard task. Both India and China rank among the front runners of global economy and are among the world’s most diverse nations. Both the countries were among the most ancient civilizations and their economies are influenced by a number of social, political, economic and other factors. However, if we try to properly understand the various economic and market trends and features of the countries, we can make a comparison between Indian and Chinese economy.

Going by the basic facts, the economy of China is more developed than that of India. While India is the 12th largest economy in terms of the exchange rates, China occupies the third position. Compared to the estimated $1.209 trillion GDP of India, China has an average GDP of around $7.8 trillion. In case of per capital GDP, India lags far behind China with just $1016 compared to $6,100 of the latter. To make a basic comparison of India and China Economy, we need to have an idea of the economic facts of the countries.

Facts
GDP (India: around $1.209 trillion - China: around $7.8 trillion)
GDP growth (India: 6.7% - China: 9.1%)
Per capital GDP (India: $1016 - China: $6,100)
Inflation (India: 7.8 % - China: -1.2 %)
Labor Force (India: 523.5 million - China: 807.7 million)
Unemployment (India: 6.8 % - China: 4.3 %)

If we make the analysis of the India vs. China economy, we can see that there are a number of factors that has made China a better economy than India. First things first, India was under the colonial rule of the British for around 190 years. This drained the country’s resources to a great extent and led to huge economic loss. On the other hand, there was no such instance of colonization in China. As such, from the very beginning, the country enjoyed a planned economic model which made it stronger.

Agriculture

Agriculture is another factor of economic comparison of India and China. It forms a major economic sector in both the countries. However, the agricultural sector of China is more developed than that of India. Unlike India, where farmers still use the traditional and old methods of cultivation, the agricultural techniques used in China are very much developed. This leads to better quality and high yield of crops which can be exported.

Liberalization of the market

In spite of being a Socialist country, China started towards the liberalization of its market economy much before India. This strengthened the economy to a great extent. On the other hand, India was very slow in embracing globalization and open market economies. While India’s liberalization policies started in the 1990s, China welcomed foreign direct investment and private investment in the mid 1980s. This made a significant change in its economy and the GDP increased considerably.

Difference in infrastructure and other aspects of economic growth

Compared to India, China has a much well developed infrastructure. Some of the important factors that have created a stark difference between the economies of the two countries are manpower and labor development, water management, health care facilities and services, communication, civic amenities and so on. All these aspects are well developed in China which has put a positive impact in its economy to make it one of the best in the world. Although India has become much developed than before, it is still plagued by problems such as poverty, unemployment, lack of civic amenities and so on. In fact unlike India, China is still investing in huge amounts towards manpower development and strengthening of infrastructure.

So the British (the John Bull) colonial rule in India for around 190 years was the main reason India went broke and lagged behind China in development. Otherwise, India today could have been the No.1 economy in the world.

Things to look for when buying a business

Buying a business is not as straightforward as simply identifying the sector you wish to buy into and then watching the money roll in. There are a myriad checks that should be carried out as well as the more practical decisions concerning suitability of the business and its long terms viability.

Of the most immediate concern would be the state of the company’s finances. It is of intrinsic importance that a clear picture is sought before any further steps are taken.

In this, it is important to be diligent in your approach warns Greg Moore, a business consultant based in Dubai. ‘When establishing the basic financial principles of the business it is important to have access to accounts over an extended period, not just over the last quarter but go back much further. It is possible some people may massage their accounts.’

Of almost equal importance is to ask around and build up a background of the business. As with most walks of life, reputation will play a very important part in a business and it is necessary to ensure the business you are interested in acquiring is seen in a positive light. ‘Ask around, seek out a background, establish a reputation as it is THE most important thing in business. Does it pay on time? How does it do business? These are the sort of questions that should be sought out,’ said Moore.

The sort of questions will obviously be dictated by the type of business. If it was a PR firm for example, as a people business it would be pertinent to establish the sort of people working within the firm; what motivates them, will they be happy to see a new owner, make sure they are performing to an acceptable standard and will you be happy with such a workforce. Quite often new owners will have to work with existing staff to assure them over possible changes.

In the case of a service sector like a restaurant, then again it would be a case of ascertaining the quality of the business, the level of turnover, popularity and how it markets itself. Then there are more practical decisions to consider. Is its location any good? Are there plans to change the road or impact on access? Are there any planned laws or regulation changes that could affect the business?

Other questions a buyer should ask is whether they can run this business? Does the training, background and skills stack up?

‘At the end of the day, what should concern you in the short-term is the financial status and reputation of the business you are looking to buy. If these two appear in order then there will be opportunities to explore further and maybe make an investment decision,’ said Moore.

As long as you have done your due diligence, then the opportunities for entrepreneurs looking to buy a business are great, it is after all done thousands of times a year. Skip this process, or fail to explore all angles of the business and you may well pay dearly for your laziness - AMEinfo.com

The ABCs of Economic Recovery

10 November 2009 - Warren Buffet voted with his pocketbook this past week investing $26 billion dollars to purchase Burlington Northern Santa Fe, one of America’s oldest railroad networks and the backbone that helped build the country. Buffet is a classic, disciplined value investor who likes getting into a company when his internal screening criteria have been met.

The Oracle of Omaha — as he is fondly referred to as a result of his Mid-Western roots in Nebraska — is also big on animal instinct. The concept is simple, we all need to be aware to both survive and smell opportunity when it beckons. In that spirit, Buffet is probably letting economists debate the merits of whether this is a V shaped recovery (sharp downturn and straight line back to growth) or a recovery that reflects a W, which recovers, dips and bounces up and down for a few years. Maybe I am a child of the 60’s, but my fond recollection of those letters has more to do with the VW Beatles to get to the beaches of California, not illustrations to guide economics.

There has been quite a spirited debate on the accuracy of gross domestic product figures again. The criticism being that the measurement is looking backwards not forward and the basket that measures GDP is not reflective of real, on the ground decision making. I put aside traditional economic research for the last month during three visits to the Middle East which included Dubai, Qatar and finally Abu Dhabi during the Formula 1 festivities and the launch of our regional hub in the UAE capital. Instead, I relied entirely on 
animal instincts.

Going back to my Greek roots, I used the agora to get the latest reading of what is happening. Bankers confidently said that the road show, aimed to raise $6.5 billion in Dubai would be well received. The first portion of that offering was three times oversubscribed.

Businessmen noted that they felt the worst was over in the property market there and that foreign buyers started to show interest again. Colliers International released figures this week indicating that prices rose 7 per cent in the third quarter, although they are down 47 per cent on the year. Again, it does point to a bottom being reached.

In Qatar, despite the bottom following out of the natural gas market (trading one-fourth the equivalent of crude prices right now) the economy is hardly suffering through the “recession” with growth of 8.5 per cent this year. The biggest challenge is completing projects on time and allowing the market to catch up with all the construction. Again put the GDP numbers on the shelf and you find businessmen confident that capacity can be absorbed and that population growth and natural gas exports will drive their order books for a decade if not two. The Qataris know a thing or two about VW as well, but it has nothing to do with economics, just their stake in the German automaker after the protracted boardroom battle with Porsche.

Finally, the Formula 1 race looks to be only a start not the finish line for Abu Dhabi. I was surprised enough at the $40 billion officially spent to build up Yas Island and the infrastructure around it to host the circuit. According to Economy Minister Sultan bin Saeed al Mansouri that is only the beginning.

He says that the Yas Marina complex will be a blueprint for future development with an eventual commitment of $1 trillion dollars — for roads, power plants and rail links. That is an eye-popping number that others within the government were shall we say shy to commit to themselves, but it does give a sense of how both the old economy will help build the new one and the future won’t be measured by a V or a W in the region - John Defterios presents Marketplace, Middle East on CNN

Dubai Olympics 2020 bid

Dubai maps 2020 Olympic bid strategy - Tue November 3, 2009 12:02 am.

The committee of the 'Dubai 2020' Working Group, tasked with bringing the Olympic games to the city, held its first meeting Monday at the Emirates Towers under the Chairmanship of the Crown Prince of Dubai HH Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum.

Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum attended a segment of the meeting according to the official news agency WAM.

Sheikh Mohammed directed the Chairman and members of the Group to work as a one team to enable the UAE to win bids for Expo and the Olympics in 2020, WAM said.

"Nothing is impossible as long as we have the determination for change, not change of determination," Sheikh Mohammed told the Group members.

The Group members included several other members of the emirate's political elite, suggesting strong government support for a possible bid.

The Japanese cities of Hiroshima and Nagasaki said they were considering bidding for the 2020 Summer Olympics in tandem with a campaign to promote a nuclear-free world.

Rome and Venice are reportedly preparing to host the 2020 Summer Olympics. Other cities including Cape Town, Durban and Rabat have also been mentioned as possible candidates.

The International Olympic Committee is to announce the 2020 host city in 2013.

Madhu Engineer

Dear Madhu,

Hope you have received my e-mail.

I get the feeting that you are afraid of people living in the neighborhood of the Plot where the house we are planning to construct.

There is absolutely nothing to be afraid of anyone at Omalloor. It was last year that we had some problems with the neighbors on whom I initiated an injunction order through my borther-in-law, P.K. Sasidharan, Advocate Pathanamthitta, restraining the party from walking across my land, i.e. through the plot in front of the plot we are planning to construct the house.

Now everybody knows that I am constructing a house at the said plot. In fact, when I was in Kerala, I spoke to P.K. Sasidharan about any people in the neighborhood at Omalloor troubling us while the construction work is being done. He said that there is nothing to worry about such things, as I am constructing a house on my plot, and if there is any problem, that he will take care of it.

So, if you come across any problems from any people at Omalloor, just let me know, or Mr. P.K. Sasidharan, whose telephone number I already gave you in my first e-mail to you. I will speak once again to Mr. P.K. Sasidharan if you want it. But once again, you need not worry about or afraid of anything at Omalloor. You are my engineer / contractor, and I will deal with anyone who may try to create problem for us, through the proper legal channels, if that becomes necesssary.

Far from it, I have ordered for two more loads of the same sand (gravel) through Mr. Pattar, which will be unloaded in the next few days to further level the entrance from main-road to the plots. As soon as that is done, you can further make the pathway better by using your men, material, and efforts. Any costs thereof will be paid by me. Just let me know how much will it cost.

As far as the stream right in front of the plot is concerned, please make an access by constructing a slab; also at my cost. Please note that it is not possible for me to do things at Omalloor while I am in Sharjah. So, now everything is up to you. Be brave, and start the necessary works as soon as the weather conditions permit it.

Best regards,

PRATHAP G. Sharjah

Warren Buffett

A Message From Warren E. Buffett, CEO of Berkshire Hathaway Inc.

Dear Reader,

You probably know that I don't make stock recommendations. However, I have three thoughts regarding your personal expenditures that can save you real money. I'm suggesting that you call on the services of three subsidiaries of Berkshire: GEICO, Borsheim's and Berkshire Hathaway Life Insurance Company of Nebraska (BHLN).

I estimate that about 40% of all auto drivers in the country can save money by insuring with GEICO. The figure is not 100% because insurers differ in their underwriting judgments, with some favoring drivers who live in certain geographical areas and work in certain occupations more than GEICO does. I believe, however, that GEICO more frequently offers the low price than does any other national carrier selling insurance to all comers. You can quickly find out whether you can save money by going to www.geico.com or by calling 800-555-2756.

Fine jewelry, watches and giftware will almost certainly cost you less at Borsheim's. I've looked at the figures for all publicly-owned jewelry companies and the contrast with Borsheim's is startling. Our one-store operation, with its huge volume, enables us to operate with costs that are fully 15-20 percentage points below those incurred by our competitors. We pass the benefits of this low-cost structure along to our customers.

Every year Borsheim's sends out thousands of selections to customers who want a long-distance opportunity to inspect what it offers and decide which, if any, item they'd like to purchase. We do a huge amount of business in this low-key way, which allows the shopper to conveniently see the exceptional values that we offer. Call Joe Corritore or Susan Jacques at Borsheim's (800-642-4438) and save substantial money on your next purchase of jewelry.

Finally, BHLN sells annuity products directly over the internet at its website www.brkdirect.com. Like GEICO and Borsheim's, BHLN maintains a low cost structure and, thus, can offer savings to many customers. By visiting the web-site, you can evaluate the specific products, get quotes and actually make a purchase. Check to see whether one or more of the products meet your financial planning needs.

Sincerely, Warren E. Buffett

Dear Mr. Warren E.Buffett, CEO of Berkshire Hathaway Inc.,

You are gem of a salesman, and your spirit, enthusiasm, and business acumen, is what made you the richest man in the world. Hats off to you, Sir. - Prathap G., Sharjah, United Arab Emirates – 22nd October, 2009.

Peaceful Use of Nuclear Energy

UAE issues law on peaceful use of nuclear energy.

Dubai, Oct 5 (PTI) The United Arab Emirates has issued a federal law under which a nuclear regulatory body will be set up to monitor the peaceful use of atomic energy.

The move is in accordance with the criteria set by the International Atomic Energy Agency (IAEA) as a framework for the successful implementation of the Peaceful Nuclear Energy Programme, official news agency, Wam, said.

The law, issued by President Sheikh Khalifa bin Zayed Al Nahyan, prohibits the development, construction or operation of uranium enrichment or spent fuel reprocessing facilities within the borders of the UAE.

In keeping with its policy commitment to complete operational transparency, the UAE consulted closely with the IAEA as well as the governments of major nuclear suppliers (e.g., France the US, the UK, Japan, South Korea etc.) in the development of the law, the Wam release said.

Hats off to the President of the United Arab Emirates - I love it. Every country must follow suit - Prathap G., Sharjah