School of Business, Public Policy & Social

Entrepreneurship (SBPPSE)

CHINAS IMPACT ON INDIA

Submitted By: Group - 4

Jatin Anand
Nishtha Gupta
Mansi Pruthi
Mayur
Mohd. Tariq
Prateek Saini

CHINAS GROWTH RATE AND ITS IMPACT ON INDIA

Macroeconomics

Chinas socialist market economy is the worlds second largest economy by nominal GDP
and the worlds largest economy by purchasing power parity. Until 2015, China was the
worlds fastest growing major economy, with growth rate averaging 10%
China is the largest manufacturing economy in the world as well as the largest exporter of
goods in the economy. China is also the worlds fastest growing consumer market.
China is Indias largest trading partner. Trade between the two countries has been expanding
annually at 15% since 2007. With the slowing Chinese economy, Indias trade imbalance will
widen.

KEY ACTORS
Suppliers of Inputs
Marketing Intermediaries- It include agents and merchants such as distribution
firms, wholesalers, retailers.

Competitors Households- It act as a regulator in the market and sometimes invest in various
infrastructure for betterment of the society. It works towards the public policies meant
for different strata of society
Government- It act as a regulator in the market and sometimes invest in various
infrastructure for betterment of the society. It works towards the public policies meant
for different strata of society

Trade officials
Financial Institutions and Banks- These institutions stimulates saving and

investment in an economy. Their role is to transfer the money from those who have
surplus to those who have shortage of funds.

KEY ECONOMIC VARIABLES

In an economy, players which involves in economic activities are following:

Industries & Manufacturers- This includes supplier of goods and services who
receives monetary payments in exchange. They also borrow financial resources from
money market. These can be further divided into three sectors.
1. Primary sector(agriculture)
2. Secondary sector(manufacturing)
3. Tertiary sector(services)

Group -4, Year -1, Batch 2016-18, SBPPSE AUD

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Macroeconomics

Households These are the final consumers of the goods and services produced in an
economy. They invest their surplus money in market which is further used by
industries for daily operations.

Government It act as a regulator in the market and sometimes invest in various

infrastructure for betterment of the society. It works towards the public policies meant
for different strata of society.

Financial Institutions & Banks These institutions stimulates saving and

investment in an economy. Their role is to transfer the money from those who have
surplus to those who have shortage of funds.

Rest of the World All other economies with which an economy engages in exports
and imports. Economic activities with ROW includes exchange of goods, services and
money.

MICROECONOMIC VARIABLES
Cost, Price and Revenue
Externalities
Demand
Opportunity cost
Economies of scale
Elasticity
Social benefit
Social cost
Different Market Structure

MACROECONOMIC VARIABLES

Different markets- Goods, Labor, Money, Stock Market

Global Competitiveness
Inflation
Unemployment
GDP
Financial Institutions
Balance of Trade- Exports and Imports

Group -4, Year -1, Batch 2016-18, SBPPSE AUD

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