India vs China Economy

ndia vs China Economy: Comparing the Economies of India and China is to embark on an old puzzle that has fascinated smart people for centuries. Although it is urgent and important to discuss it because China and India are the world's next major powers. It is also important because the two countries have embraced very different models of development.

Looking at the Similarities between the Economies of India and China, both are conscious of their role in the world economy. Both seek to play a bigger political role on the world stage. China is already doing that as a permanent member of the U.N. Security Council. Now observing the Differences between the Economies of India and China we see that China is taking tangible but slow steps towards embracing private entrepreneurship. India on the other hand is continuing to struggle with making things easier for multinationals. Although the differences are arguably narrowing, but the first-order effect of all this is still “a big difference”.

In general, FDI has been positive to both the Economies of India and China. It has provided goods and services that did not otherwise exist. It has also introduced competition into moribund sectors.

Both countries have clocked up strong economic growth since 1980, China at a spectacular 9 per cent plus and India at nearly 6 per cent. Both countries have opened up to international trade and capital in the past quarter of a century, decisively in China and more hesitantly in India.

China's per capita GDP growth has averaged 8 per cent in the 25 years since 1980, more than double the growth rate of Indian per capita GDP. Somewhere between 1975 and 1985 China's average income is believed to have surpassed India's. Since then it has kept moving ahead. By 2003 China's per capita GNP was at least 70 per cent higher than that of India's and her economy was more than twice as large as India's. Much of China's growth was powered by labor-intensive manufactured exports, which took the share of manufacturing in GDP to nearly 40 per cent, compared to a mere 16 per cent in India.

Other indicators like living standards were just as decisively in China's favor by the turn of the millennium. China's poverty ratio was less than half India's 35 per cent. Female adult literacy was nearly double India's pathetic 45 per cent. Life expectancy in China was a solid 8 years higher than that in India.

Looking at the future, it is easier to forecast a widening of the existing Economic disparities between China and India than a reduction.

Indian air force vs PLAAF?

The two forces are fairly even matched after the IAF (India air force) brought Sukhoi Su-30MKI which is suppose to be better than the Chinese Sukhoi Su-30MKK. However the latest report from China is that the indigenous built J-11 surpasses the Sukhoi Su-30MKK and maybe (not sure) the Sukhoi Su-30MKI. So we have to look at the numbers: (numbers below are debatable)

(Forth-fifth Gen fighters)

PLAAF (391)

Su-27 (76)- In addition to license producing J-11s, China has purchased a number of fully-built Su-27s from Russia. By 2008, most of these aircraft has been upgraded to J-11A standard in terms of radar, avionics, and weapons.

Su-30MKK (100)- In terms of air-to-air capability, the Su-30 are probably the weakest of the Flankers flying Chinese colors. The Su-30 was primarily ordered for its advanced ground attack capabilities. The far more advanced Su-30MKK2, with both enhanced A2A as well as anti-shipping capabilities, is in service with the Chinese navy.

J-11 (95)- The first J-11s were license-produced copies of Russian Su-27SKs/UBKs that were imported from Russia. The first Chinese improvement to the basic J-11 was the J-11A, which featured an improved Russian radar, a Chinese Helmet-mounted-sight system, and some digitized, LCD displays. A new indigenous variant, classified the J-11B appeared in 2006. This variant featured an improved Chinese-designed radar, full air-to-ground and anti-shipping capability, improved missile-warning systems, much improved avionics, solid-state electronics, and a full-glass cockpit. A mixture of J-11A and J-11B avionic/radar upgrades have been since applied to nearly all J-11s and Su-27s in Chinese service. Other significant improvements to the Su-27 involves a more reliable Chinese-designed engine with a modest performance improvement over the Russian AL-31, use of composites which make up 70% of the weight of the aircraft, and minor redesigns that cumulate in a weight reduction of about 10% and radar-signature reduction of 88%.

J-10 (120)- The J-10 is China's only indigenous 4th-generation fighter. It is a much smaller fighter than the Flanker, and thus has less range, payload, and a less-powerful radar. However, it enjoys much greater maneuverability and reduced radar-cross section (of less than 1m squared, vs 3m squared of J-11B and 25m squared of baseline Flankers). The J-10 is also easier and cheaper to produce. Currently, the Chinese are working on a AESA radar for the J-10.

IAF (212)

Su-30MKI (110)- The Su-30MKI is one of the most advanced Flanker variants in current operation. It features a passive phased array radar, advanced FLIR and electro-optical capability, thrust-vectoring, and impressive low-speed maneuverability, thanks to the addition of canards. Hands-down, the Su-30MKI is superior to all Flankers short of the J-11B in PLAAF service. It is difficult to compare the MKI to the J-11B however, due to their relative advantages in different areas. The Su-30MKI is about 20% heavier, and features an engine with slightly less powerful dry(non-afterburning) thrust, thus giving it a slightly lower thrust-to-weight ratio. Furthermore, the Su-30MKI also has about 8 times the radar-cross section of the J-11B. In terms of radar, the Su-30MKI has a clear advantage, and the MKI still retains a slight advantage in avionics despite major improvements to China's indigenous avionics industry. The MKI is also more maneuverable at subsonic speeds, though the J-11B has a superior climb-rate and better acceleration.

Mig-29 (62)- The Mig-29 is a very capable fighter, and is a smaller complement to the Su-30MKI much like the J-10 is to the J-11. India has accumulated a variety of Mig-29 variants with a even larger variety of radars/avionics over the years, but they are all slated for upgrades and standardization in 2008. Both the Mig-29 and J-10 are claimed to be superior to the F-16 in terms of performance and maneuverability. It is possible for the Mig-29s to receive PESA radar, either with the currently ongoing upgrades or with a future upgrades package.

Mirage-2000 (51)- The Mirage is a multi-role French fighter that excels at both the A2A and A2G roles. However, the Mirages are incompatible with the Russian missiles that the IAF uses. Currently, India is undergoing negotiations with France to upgrade the Mirages with more modern weapons. The Mirage is an older and somewhat less capable design when compared to the Flanker, Fulcrum, and J-10.

(Third Gen fighters)

PLAAF (800)

J-8II (300)- The J-8 is an indigenous Chinese high-speed interceptor. The current variant, the J-8F uses Chinese radar with the ability to fire the latest Chinese BVR missiles and features a more powerful and efficient engine over earlier designs. Older J-8s are being upgraded to J-8H standard, which also features an advanced Chinese radar but retains the older engine type.

J-7- The J-7 is a Chinese fighter based on the Russian Mig-21 design. Current J-7s in Chinese service feature a double-delta wing design and a Chinese-designed engine, offering it much enhanced maneuverability and performance. Although BVR capable version exists for export, the PLAAF has instead decided to pursue upgrades in its WVR capabilities. Its radar is designed to work in tandem with a HMS, allowing it to fire a variety of the latest off-bore sight WVR missiles at multiple targets.

JH-7- The JH-7 is an indigenous fighter-bomber developed in China that is optimized for A2G precision strike. A naval version also exists, serving the PLANAF. In the air-to-air role, the JH-7 lacks BVR capability.

IAF (256)

Jaguar (131)- The Jaguar is an European fighter-bomber that is utilized primary for the deep-strike role by the IAF. Like the JH-7, Jaguars possess advanced A2G capabilities but lacks BVR capability for A2A combat. The Jaguar carries a lesser payload and has a lower top speed when compared to the JH-7.

Mig-21 BISON (125)- The Bison is an advanced Mig-21 variant, and the only one with BVR capability. It also has a significantly improved engine for better performance. However, its BVR range is limited and the one's in IAF service have been very prone to mishaps and accidents, hence earning the nickname "flying coffin."

(Second Gen Fighters)

PLAAF (0)

IAF (175)

Mig-21 (175)- The IAF still operates a number of older Mig-21 designs. These aging fighters are slated to be phased out of IAF service by 2011. They possess aging airframes, and lack both BVR capability or enhanced WVR capability.

Clearly the IAF is at an disadvantage in terms of number (1191 vs 593).

In terms of quality, it depends on the particular aircraft and capability. For example, the Su-30MKI is the most advanced aircraft out of the two air forces, yet the Mig-21bis is also the least advanced. Furthermore, Indian and Chinese aircraft possess dissimilar advantages and disadvantages, making it difficult to do direct comparisons such as J-11B vs Su-30MKI and J-10 vs Mig-29. This is also seen in the radars of the two air forces, with the IAF possessing PESA radar on the MKI and possibly the Mig-29 in the future, while the PLAAF uses inferior mechanical array radars. On the other hand, the PLAAF has been able to develop mechanical array radars superior to the generation of Russian and Western radars found on the majority of IAF fighters.

In term of missile, the R-77/R-73 BVR/WVR combo is seen in both air forces. Both nations also use the Russian R-27 BVR missile. However, in recent years the PLA has also added the SD-10 BVR missile and PL-9 WVR missile on some of its newer aircraft.

Next is pilot training, according to external sources, only recently has PLAAF training begin to improve. Prior to the induction of Flankers, the average PLAAF pilot only flew for about 80-100 hours a year, as compared to the 210 hour average of the USAF. In recent years, the PLAAF has stepped up its training, requiring 180 hours for frontline fighter pilots and 120 hours for J-8 and J-7 pilots.

Pilot training the IAF varies widely by unit, though it is upwards of 200 hours for elite Su-30MKI squadrons.

Futhermore, beyond actual fighters, the PLAAF has a signifcant advantage in AWACs capability. The IAF has ordered 3 A-50 platforms from Russia but does not have any platforms in current operation. The PLAAF, on the other hand operates 4 KJ-2000 platforms and numerous smaller Y-8 platforms. The Chinese platforms all all indigenous, demonstrating that the Chinese are capable of designing and producing advanced AESA radars.

On a interesting note, China has got no air force wings or bases near India, for most of its airbases are either located near the Taiwan Strait, near Beijing, or in the Northeastern area of the country.

India vs China on Military Strength - Conventional and Nuclear

China’s military capability displayed in ‘PEACE MISSION 2005‘ joint exercise with Russia

According to United States DoD (Department of Defense) reports for 2006, China’s military expenditure is estimated to be 80 billion US dollars. However, the official Chinese CPC government quote is a $30 billion military expenditure (which a lot of analysts believe is underquoted). The actual Chinese military capabilities and budget are shrouded in deep secrecy to prevent foreign countries having an idea of its military might…and perhaps to create the strategic advantage of uncertainity. If we were to go by the conservative official Chinese figure of $30 billion, it would put China second only to USA in global military spending. On the other side, India’s official military expenditure for 2006 is quoted at $22 billion by the Ministry of Finance (India) Budget (2006-2007). India however, does not keep a level of secrecy as cloaked as China does, as its democratic government system requires public accountability. By its official 2006 military budget figures, India stands at 9th position in global military spending.



India’s supersonic PJ-10 BrahMos developed jointly by Russia and is the fastest cruise missile with a top speed of Mach 2.8 (~ three times faster than US’ Tomahawk)

In 2006 India’s active military personell numbered over 1,325,000 while China was significantly higher at 2,255,000. In air defence, China’s PLA (People’s Liberation Army) Air Force has 9,218 aircrafts of which about 2300 are combat aircrafts, operating from its 489+ air bases. The Indian Air Force has 3382 aircrafts which includes 1335 combat aircrafts operating from 334+ bases and its sole aircraft carrier INS Viraat. The air superiority in China’s PLAAF is maintained by its fleet of Russian Su-30 MK and indigenously built J-10 fighters. Indian Air Force, on the other hand has French built Dassault Mirage 2000s and Russian Su-30 MKI as the best aircrafts in its combat fleet (no indigenous fighters or aircrafts have been deployed by India so far). Indian Navy is the world’s eighth largest navy with a with a fleet of 145 vessels consisting of missile-capable warships, advanced submarines, the latest naval aircrafts and an aircraft carrier in its inventory. It is experienced both in combat and rescue operations during wartime and peace as seen from its wars with Pakistan in 1971, the December 2004 Tsunami, etc. In comparison, China’s PLA Navy with its fleet of 284 vessels is quantitatively larger but lacking in actual war experience, which could undermine its strategic capability. As of 2007, China has no aircraft carriers in its naval fleet but is slated to build and induct an aircraft carrier by 2010.



In strategic nuclear defence and delivery systems, China’s PLA is miles ahead of India’s nuclear forces. The PLA’s stockpile is estimated to have 200-400 active nuclear warheads. In comparison, India’s strategic nuclear force is estimated to have stockpiled about 50-70 nuclear warheads. The most powerful warhead tested by India had an yield of 0.05 megatons which is quite small compared to China’s highest yield of 4 megatons. India’s nuclear delivery system consists of bombers, supersonic cruise missiles and medium range ballistic missiles. Agni 2, India’s longest range deployed ballistic missile is capable of a range of 2500 km, carrying a single nuclear warhead of ~1000 kg. In stark contrast, China’s nuclear delivery system is far more capable with multiple warhead (MIRV) ICBMs like DF-5A [12000+ km] and DF-4 [7500+ km]. It also fields submarine launched SLBMs like JL-2 [8500+ km] and strategic fighter bombers like Su-27 Flanker in its nuclear delivery arsenal.



Economic theory teaches us that incentives drive decision making by a nation or an individual. In case of India, a democracy with no serious military adversary, its militarisation drive is often overshadowed by internal militancy issues and political struggles. In case of a communist China, it has a powerful military adversary in United States; the conflicts over Taiwan give China a strong incentive to beef up its military defence to counter the US military might. The situation is much similar to that of USSR vs USA Cold War, albeit on a much smaller scale. The end result is China walking far ahead of India in military might with overpowering superiority if both conventional and nuclear forces are taken into account.