Economic Comparison between India and ChinaFrom April to June 2005, India's GDP grew by 8.1%, compared to 7.6% in the same period the previous year. Even more impressive is the fact that India is achieving this with only half the level of domestic investment of China in new factories and equipment, and only 10% of China's foreign direct investment… in 2003 and 2004, [ China] was investing nearly 50% of its GDP in domestic plants and equipment, roughly equivalent to India's entire GDP. This is higher than that of any other country... China's growth comes from massive accumulation of resources, while India's growth comes from greater efficiency... While the Indian stock market has soared in recent years, the opposite has happened in China. In 2001 the Shanghai Stock Exchange index reached 2,200 points; in 2005 half the wealth was wiped out. In April 2005, the Shanghai index stood at 1,135 points... [Link]Huang opposes using foreign direct investment as a key measure of economic growth: With few exceptions, world-class manufacturing facilities for which China is famous for are products of foreign direct investment, not indigenous Chinese companies. His analysis is that India has a more laissez-faire attitude in both politics and entrepreneurship: Infosys was founded by seven entrepreneurs with few political connections who nevertheless managed, without significant material resources, to obtain capital from Indian banks and the stock market in the early 1990s. It is unimaginable that a Chinese bank would lend to the Chinese equivalent of an Infosys. China was light years ahead of India in the economic liberalization of the 1980s. Today it is behind on critical aspects, such as the reform that would allow more foreign investment and... in the middle of the paper... the rate k and the reverse repo rate of the RBI are at 6%.' In China the reserve ratio prescribed by the central bank for banks is 13% (October 2007), while the RBI has prescribed a reserve ratio of 32% (25% statutory liquidity and 7% cash reserve). 100% to world trade, while India's contribution to world trade is less than 1% (0.8%).” China is in surplus in both fiscal and trade terms, while India had a trade deficit of $21.6 billion in April-June 2007, or 7% of India's GDP. • OTHER DATA Exchange rate of one US dollar = 7.48 yuan, while one US dollar = 39.33 Indian rupees.' The average wage increase for workers in 2007 was 8% in China, while in India it was 14%..