Components of

India Australia Singapore UK US

Comparison
$301.90 billion $1.56 trillion
$435.80 billion $473.00 billion
Ranked 19th. 17% $257.90 billion Ranked 2nd. 5
Exports Ranked 13th. 44% Ranked 10th. 57%
more than Ranked 22nd. times more than
more than India more than India
Australia India
$1.84 trillion $15.68 trillion
$2.44 trillion
Ranked 11th. 21% $1.52 trillion $274.70 billion Ranked 2nd. 9
GDP Ranked 7th. 32%
more than Ranked 13th. Ranked 34th. times more than
more than India
Australia India
68.9% 73.2%
65%
GDP Services Ranked 55th. 6% Ranked 33th. 13% NA NA
Ranked 74th.
more than India more than India
$37,828.78 per $57,596.47 per $35,046.59 per $45,759.46 per
$2,625.09 per capita capita capita capita
GDP Per Capita capita Ranked 15th. 14 Ranked 3rd. 22 Ranked 21st. 13 Ranked 8th. 17
Ranked 130th. times more than times more than times more than times more than
India India India India
$42,000.00 $60,800.00 $36,600.00 $51,700.00
$3,800.00 Ranked 10th. 11 Ranked 3rd. 16 Ranked 21st. 10 Ranked 6th. 14
GDP PPP
Ranked 132nd. times more than times more than times more than times more than
India India India India
 Components of
India Australia Singapore UK US
Comparison
$477.00 billion $1.48 trillion $9.78 trillion
Gross National Ranked 12th. 24% $386.00 billion $88.81 billion Ranked 4th. 3 Ranked 1st. 21
Income more than Ranked 14th. Ranked 33th. times more than times more than
Australia India India
9.7%
Inflation Rate – Ranked 25th. 5 1.8% 4.6% 2.8% 2.1%
Consumer Prices times more than Ranked 168th. Ranked 83th. Ranked 126th. Ranked 160th.
Australia
51.7% of GDP 111.4% of GDP
88.7% of GDP 70% of GDP
32.4% of GDP Ranked 61st. 60% Ranked 12th. 2
Public Debt Ranked 19th. 72% Ranked 37th. 35%
Ranked 107th. more than times more than
more than India more than India
Australia India
8.5%
Unemployment 5.2% Ranked 46th. 63% 1.9% 8% 8.1%
rate Ranked 88th. more than Ranked 109th. Ranked 51st. Ranked 47th.
Australia
 Comparing India and China’s Economic
Growth
• India's current economic situation is similar to China's in 2007.
• Differences Between the Economies of India and China
• The Gap in Investment Ratios: China's investment to Gross Domestic
Product (GDP) ratio has been consistently high, averaging around
40% from 2003 to 2011, while India's investment ratio during its high
growth phase was around 33%, lower than China's.
• The twin deficit problem (current Account Deficit and Fiscal Deficit),
especially the worsening current account deficit, may compound the
effect of costlier imports, and weaken the value of the rupee thereby
further aggravating external imbalances.
• Disparity in the Composition of exports and Imports: In fiscal year
2022-23, India's exports of goods and services reached over USD 770
billion, while imports were around USD 890 billion. However, in 2007
when China's economy was of a similar size, China's exports had
already exceeded USD 1.2 trillion, primarily driven by the export of
goods rather than services.
• Difference in Tariff Rates: China has successfully positioned itself as a
central hub for global supply chains, partly due to its consistent
reduction in tariff rates. From 2003 to 2007, China's average tariff
rate decreased from 10.69% to 8.93% and further declined to 5.32%
in 2020. This reduction in tariffs has facilitated China's integration
into global trade and attracted foreign investments.
• Labor Force Participation: China has consistently maintained a high
labor force participation rate over the years. In 2007, China's labor
force participation rate was almost 73% (for individuals aged 15 and
above, according to estimates by the International Labor
Organization). However, this rate has gradually declined and currently
stands at around 67%.
• On the other hand, India's labor force participation rate is estimated to be
around 50% in 2022, which suggests a lower proportion of the population
actively participating in the workforce compared to China.

Lack of Employment Generation: While a significant number of jobs have been

created in construction and services such as trade and transport in India,
Formal Manufacturing is much more productive in terms of output per worker.
• Participation of Women: The difference in labor force participation
between China and India is mainly attributed to the participation of
women. In China, the female labor force participation rate was 66%
in 2007, but it has declined to 61% in 2022. In India, the female
participation rate was much lower at 30% in 2007, and it has further
decreased to 24% in 2022.
What can be the Way Forward?
• Increase Investment Activity
• Boost Exports
• Enhance Female Labour Force Participation
• Generate Employment Opportunities in Formal Manufacturing
• Maintain a Conducive Investment Climate
• Emphasise Education and Skill Development
• Strengthen Infrastructure
• Foster Regional and International Collaborations