Challenges Before Emerging Market Economies

Most of the countries in the world tell about the case of India and China, the two emerging market economies for their respective GDP growth. India's over decade success is a better example in this regard.

• The slow reforms process has brought more success for the country like India in the recent years. The BRIC report of Goldman Sachs forecasted that between 2000 and 2050 India's GDP will increase by 60 times and China's by 40 times. Let us compare how both India and China, the two emerging market economies are behaving in economic spheres.
  As in the year 2005 the GDP in China was at $2.2 trillions compared to India at $700 billions.
• In Foreign Trade 2005, China owned $1.4 trillions compared to $230 billions for India.
• In Foreign Exchanges Services 2005,
• China had $820 billions and India at $147 billions.
• In terms of contributions to the Global growth for 2000-04, China constituted 15% while India at 5%.
• As in the year 2004, the investment in infrastructure in China was 7% of GDP compared to 3.5% of GDP in case of India.
• With regards to Foreign Direct Investments as in 2005, China had $60 billions compared to India at $5 billions.

Though above discussed emerging economies of the world are experiencing a better euphoric environment presently, still to what extent they are able enough to maintain this.

The much feared oil prices reached a record level of $78 per barrel. The world oil production is around 85 millions barrels per day presently.

Both the countries are expected to require 160 millions and 60 millions barrels per day respectively by the year 2050. But the question arises that to what extent both the nations are able enough to meet this demands. Really it has put a great pressure on the part of planners in the two emerging economies.