Research on India and China: Interconnections and Comparisons‪.‬

INTRODUCTION As India and China reform and develop, the global economy is affected by what happens in these two major markets. Most multinationals have Indian and China strategies, and increasingly the growing interconnections between these two economies are shaping the opportunities for business. The sheer size of the economies is certainly a factor. India's population has surpassed 1 billion people and its economy is the fourth largest in the world; China has approximately 1.3 billion people and is now estimated to be the second largest economy by purchasing power parity measures. But more than size, the dynamics of change in these two countries present new but unfamiliar markets, as well as the possibility of rapid growth for some time to come. Moreover, reforms in both economies have made them increasingly market-oriented and open to foreign trade and investment. Indian and Chinese companies are becoming major global players as they expand at home and invest abroad.