China's economy is approximately 1.3x larger than India's in nominal GDP ($17.9 trillion vs $13.6 trillion in 2024), but India is growing faster at 6.2% annually compared to China's 5.0%, positioning India to potentially surpass China within 15-20 years. China dominates in manufacturing and exports, while India leads in services and has a younger demographic advantage.
India vs China Economy 2026 — Side-by-side comparison on A Versus B
China maintains economic superiority with 31% larger GDP, higher per-capita income, and dominant manufacturing/export position—better for established business partnerships and supply chain efficiency. Choose China for current economic scale and stability. Choose India for long-term growth potential, demographic dividend (younger workforce entering prime earning years), and emerging tech/services sector opportunities; India is growing 1.2 percentage points faster and projects to become the world's second-largest economy by 2040.
World's 5th largest economy with fastest major-economy growth rate and expanding services sector
World's 2nd largest economy and top exporter with mature manufacturing base and high per-capita income
India vs China Economy 2026 — Comparison Data
Structured comparison data for India vs China Economy 2026 with 182 attributes.
Lithium Iron Phosphate Battery Production
Lithium Iron Phosphate Battery Production Share
Foreign Direct Investment Inflows (Annual)
Tech Sector Market Capitalization (Top 7 Companies)
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India vs China Economy 2026 — Attribute Category Vocabulary
Taxonomy of attribute categories used to classify comparison data for India vs China Economy 2026.
Based on current growth trajectories, India's 6.2% annual growth versus China's 5.0% suggests India could reach China's current nominal GDP size by approximately 2040-2045. However, China's economy will also continue growing, so India would need to maintain this growth differential for 15-20 years. India is projected to become the world's 2nd largest economy (nominal GDP) by 2047, behind a still-growing USA, according to IMF and World Bank forecasts.
Why is China's per capita income so much higher than India's?
China's per capita GDP is 12.4x higher ($12,720 vs $1,030) primarily because: (1) China's total GDP is only 1.32x larger despite nearly identical populations, concentrating wealth differently; (2) China industrialized earlier with mature manufacturing (27% of GDP) while India is still transitioning (15% of GDP); (3) China's urbanization rate is 65% versus India's 35%, driving productivity; (4) China's average wages in manufacturing/services are 3-5x higher than India's.
Which economy is better for foreign investment?
China attracts nearly 2x more FDI ($163.2B vs $85.1B in 2024) due to established infrastructure, mature supply chains, and technology sector maturity. However, India's FDI is growing faster (12% YoY vs China's 2% YoY) driven by supply chain diversification away from China and lower labor costs. For manufacturing/exports: choose China. For IT services, software, and BPO: choose India. For long-term growth exposure: India offers better risk-adjusted returns despite lower current investment volumes.
How do their export capabilities compare?
China exports $1.37 trillion annually (2024), nearly 3x India's $460 billion, dominating in manufactured goods (electronics 22%, machinery 18%, textiles 7%). India's exports are concentrated in services ($310B), gems/jewelry ($40B), and pharmaceuticals ($60B). China controls 15% of global merchandise trade versus India's 2.3%. China's advantage stems from 400+ industrial zones and 40+ years of manufacturing-focused development; India is rapidly building manufacturing capacity but remains services-dominant.
India's median age is 27.3 years versus China's 38.4 years, meaning India adds approximately 12-15 million workers annually while China loses 800,000+. By 2050, India will have 900 million working-age adults (vs China's 700 million), providing competitive advantages in labor-intensive sectors, consumer market expansion, and tax base growth. However, this requires job creation infrastructure India is still developing; insufficient employment could cause migration and social pressure rather than growth.