A Five-Year Comparative Economic Analysis of India and China: Growth Patterns and Policy Implications

Abstract

This study presents a comparative analysis of the economic performance of India and China from 2020 to 2024 using statistical techniques, including Chi-square tests, Independent t-tests, and Regression Analysis. The research examines key indicators such as GDP growth, investment patterns, trade balance, and industrial output. Findings reveal significant differences between the two economies. China maintained a higher investment-to-GDP ratio and a substantial trade surplus, supported by its strong manufacturing and export sectors. In contrast, India experienced lower but steadily increasing investment levels and a widening trade deficit. Regression results indicate that investment has a stronger influence on GDP growth in India than in China. The study concludes that India should strengthen investment and export capabilities, while China should diversify beyond investment-led growth to ensure long-term economic sustainability and resilience.