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India and China Report

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Submitted By priyuuuu
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Introduction : Rise of India and China India and China are the two most populated countries in the world, each with a little over 1 billion people. Both countries have long and ancient history. Both are unique in having an unbroken stream of ancient culture and civilization for centuries before the dawn of the Christian era. Populations of both countries consist of very highly educated and technically skilled work force. In both countries, there is very large middle class, progressively becoming very hungry for vast quantities of consumer goods.
However until the 1980s, their economies were among the poorest in the world. India has been the largest democracy since 1947 but heart-rending sights of extreme poverty can be seen even in the flourishing business capitals. There are no subways, very few highways which results in nightmarish tangle of traffic all the time. China has been under the communist rule since the revolution led by Mao Tse Tung in 1966 and still continues to be under the centralized communist rule. Both the countries operated under centralized planning and kept their economies closed to global markets. However, in the past two decades, the world is witnessing a strange miracle taking place in both the countries. In the early 1980s, first China and later, India, started opening their economies to foreign direct investment and began participating more and more in global trade. The world had never witnessed this rare phenomenon of two relatively poor countries that together consist of a third of the world’s population, simultaneously taking off on a steep ascent in their economies. During the past twenty years, China has been growing at a heady rate of over 10% a year and India has growing at over 6% per year. This miraculous and sustained growth of these two countries is being watched by the rest of the world with mixture of surprise and apprehension. At this rate, it is expected that, within the next two or three decades, India and China together would account for over half of the entire world’s output. (global GDP chart)
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History and current global scenario

The two civilizations had centuries of contact in ancient times. Thanks mainly to the export of Buddhism from India to China, Chinese came to Indian universities, visited Indian courts, and wrote memorable accounts of their voyages. Nalanda received hundreds of Chinese students in its time, and a few Indians went the other way.
But it has been a while since Indians and Chinese had much to do with each other. The heady days of Hindi-Chini bhai-bhai (“Indians and Chinese are brothers”), the slogan coined by Nehru’s India to welcome Chou En-Lai in 1955, gave way to the humiliation of the 1962 border war, after which it was “Hindi-Chini bye-bye” for decades.

The border dispute remains unresolved, with periodic incursions by Chinese troops onto Indian soil and new irritants such as the anti-Chinese protests by Tibetan exiles who have been given asylum in India. To speak of a bilateral “trust deficit” might be an understatement.

Though geography and strategy make a military rivalry natural, India and China have been working to establish trust and build cooperation. Their border dispute goes back at least five decades, intensified by the war China won against India in 1962. Both sides have addressed some of each other’s concerns on the border. In 2003, the government of India addressed the Tibet issue by acknowledging Tibet as an integral part of Chinese territory, and China recognized Sikkim in 2003 as part of India.
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[pic] Close Sino-Pakistani relations have been in place for half a century.Until about 1990, Beijing clearly sought to build up Pakistan to keep India off balance. New Delhi saw Beijing’s supply of M-11 missiles, nuclear assistance, and missile-related technology to Pakistan as a strategic threat. In the past decade and a half, China has taken a more neutral position on India-Pakistan issues such as Kashmir, and has begun to take the relationship with India more seriously. China’s apparent disapproval of Pakistan’s incursion into Kargil, across the Line of Control that separates the Indian and Pakistani-controlled parts of Kashmir, is a case in point. But China’s continuing investment in Gwadar port and close relationship with the Pakistan military raises fundamental questions about whether China’s strategic direction has changed, or only its tactics.India and China on the global scene: In global institutions, India seeks to match the role China already has. India wants a permanent seat on the Security Council, and in the meantime is working hard to obtain a non-permanent seat that will openup in 2011. China does not want to see India’s position built up in this way, but will probably try to avoid overtly blocking it. Both countries are regular guests at the meetings of the G-8; both would probably like to be full members. They will both be increasingly important players in global discussions on the environment and global health.

From the U.S.perspective, the big prize is the peace and securityof Asia. China has always been central to this,along with Washington’s traditional ally Japan. Inthe past decade and a half, India has become a key element as well, which explains the development of security ties with India and the U.S. assertion, in a White House briefing in 2005, that it wishes to help India become a major power. A harmonious India- China relationship is welcome, because it will help secure peace and economic growth in the region, and to embed China in a peaceful region and a network of regional organizations. There is a strong consensus in the United States in favor of engagement rather than confrontation with all the participants in the emerging de facto balance of power.This U.S. vision of the Asian future is probablymore congenial to India than to China. It assumes amajor U.S. role in Asia into the indefinite future.
American policy does not see India as acounterweight to China, but as a key player, with the United States and others, in a complex network of Asian power and commercial relationships. The recent success of indo us nuclear deal andreluctance of china to support the deal gives a clear view of relationship between these contemporary global powers
(war pics ,flags,pics of leaders,indo-us deal etc)

Democracy VS Communism

Politics in India: Politics of India takes place in a framework of a federal parliamentary multi-party representative democratic republic modelled after the British Westminster System. The Prime Minister of India is the head of government, while the President of India is the formal head of state and holds substantial reserve powers, placing him or her in approximately the same position as the British monarch. Executive power is exercised by the government. Federal legislative power is vested in both the government and the two chambers of the Parliament of India. The judiciary is independent of the executive and the legislature. According to its constitution, India is a "sovereign socialist secular democratic republic." India is the largest state by population with a democratically-elected government. Like the United States, India has a federal form of government, however, the central government in India has greater power in relation to its states, and its central government is patterned after the British parliamentary system. Regarding the former, "the Centre", the national government, can and has dismissed state governments if no majority party or coalition is able to form a government or under specific Constitutional clauses, and can impose direct federal rule known as President's rule. Locally, the Panchayati Raj system has several administrative functions.

[pic] Constitution of India

The Constitution of India lays down the basic structure of government under which the people are to be governed. It establishes the main organs of government - the executive, the legislature and the judiciary. The Constitution not only defines the powers of each organ, but also demarcates their responsibilities. It regulates the relationship between the different organs and between the government and the people. It thus forms the basis of politics in India. The Constitution is superior to all other laws of the country. Every law enacted by the government has to be in conformity with the Constitution.

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The governance of India is based on a tiered system, wherein the Constitution of India appropriates the subjects on which each tier of government has executive powers. The constitution uses the Seventh Schedule to delimit the subjects under three categories namely the union list, the state list and the concurrent list. The central government has the powers to enact laws on subjects under the union list, while the state governments have the powers to enact laws on subjects under the state list. Both the central as well as the state governments can enact laws on subjects under the concurrent list. However, the laws enacted by the central government under the concurrent list overrides the laws enacted by the state government when a conflict arises between those laws. DR.B.R.AMBEDKAR is known as the father of indian constitution.

Central and State Governments:

The central government exercises its broad administrative powers in the name of the President, whose duties are largely ceremonial. The president and vice president are elected indirectly for 5-year terms by a special electoral college. The vice president assumes the office of president in case of the death or resignation of the incumbent president. The constitution designates the governance of India under two branches namely the executive branch and the legislative branch. Real national executive power is centered in the Council of Ministers, led by the Prime Minister of India. The President appoints the Prime Minister, who is designated by legislators of the political party or coalition commanding a parliamentary majority. The President then appoints subordinate ministers on the advice of the Prime Minister. In reality, the President has no discretion on the question of whom to appoint as Prime Minister except when no political party or coalition of parties gains a majority in the Lok Sabha. Once the Prime Minister has been appointed, the President has no discretion on any other matter whatsoever, including the appointment of ministers. But all Central Government decisions are nominally taken in his name.

Legislative branch:

The constitution designates the Parliament of India as the legislative branch to oversee the operation of the government. India's bicameral parliament consists of the Rajya Sabha (Council of States) and the Lok Sabha (House of the People). The Council of Ministers is held responsible to the Lok Sabha. The government can enact laws and ordinances as required for the governance of the country. However, laws and ordinances have to be passed by the legislative branch in order to be effected. Parliament sessions are conducted to discuss, analyse and pass the laws tabled as Acts. Any law is first proposed as a bill in the lower house. If the lower house approves the bill in current form, the bill is then proposed to be enacted in the upper house. If not, the bill is sent for amendment and then tabled again so as to be passed as an Act. Even if the bill is passed in the lower house, the upper house has the right to reject the proposed bill and send it back to the government for amending the bill. Therefore, it can be said that the governance of India takes place under two processes; the executive process and the legislative process. Ideally, the governance cannot be done through the individual processes alone. After the Acts are passed by both the houses, the President signs the Bill as an Act. Thus the legislative branch also acts under the name of the President, like the executive branch. Ordinances are laws that are passed in lieu of Acts, when the parliament is not in session. When the parliament is in recess, the President assumes the legislative powers of both the houses temporarily, under Part V: Chapter III - Article 335 of the Constitution of India. The government has to propose a law to the President during such periods. If the President is fully satisfied with the bill, and signs the bill, it becomes an ordinance. The powers of ordinances are temporary, and each ordinance has to be tabled in the parliament when the houses reassemble. The President also has the right to withdraw an ordinance.

State Government:

States in India have their own elected governments, where as Union Territories are governed by an administrator appointed by the central government. Some of the state legislatures are bicameral, patterned after the two houses of the national parliament. The states' chief ministers are responsible to the legislatures in the same way the prime minister is responsible to parliament. Each state also has a presidentially appointed governor who may assume certain broad powers when directed by the central government. The central government exerts greater control over the union territories than over the tates, although some territories have gained more power to administer their own affairs. Local state governments in India have less autonomy compared to their counterparts in the United States and Australia.

Judicial branch:

India's independent judicial system began under the British, and its concepts and procedures resemble those of Anglo-Saxon countries. The constitution designates the Supreme Court, the High Courts and the lower courts as the authority to resolve disputes among the people as well as the disputes related to the people and the government. The constitution through its articles relating to the judicial system provides a way to question the laws of the government, if the common man finds the laws as unsuitable for any community in India.

Local governance:

Main article: Panchayati Raj On April 24, 1993, the Constitutional (73rd Amendment) Act, 1992 came into force to provide constitutional status to the Panchayati Raj institutions. This Act was extended to Panchayats in the tribal areas of eight States, namely Andhra Pradesh, Bihar, Gujarat, Himachal Pradesh, Maharashtra, Madhya Pradesh, Orissa and Rajasthan from 24 December 1996. The Act aims to provide 3-tier system of Panchayati Raj for all States having population of over 2 million, to hold Panchayat elections regularly every 5 years, to provide reservation of seats for Scheduled Castes, Scheduled Tribes and Women, to appoint State Finance Commission to make recommendations as regards the financial powers of the Panchayats and to constitute District Planning Committee to prepare draft development plan for the district.
Powers and responsibilities are delegated to Panchayats at the appropriate level: • Preparation of plan for economic development and social justice. • Implementation of schemes for economic development and social justice in relation to 29 subjects given in Eleventh Schedule of the Constitution. • To levy, collect and appropriate taxes, duties, tolls and fees.

Role of political parties:

As like any other democracy, political parties represent different sections among the Indian society and regions, and their core values play a major role in the politics of India. Both the executive branch and the legislative branch of the government are run by the representatives of the political parties who have been elected through the elections. Through the electoral process, the people of India choose which majority in the lower house, a government can be formed by that party or the coalition.
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Indian state governments led by various political parties as of 3 January 2008 India has a multi-party system, where there are a number of national as well as regional parties. A regional party may gain a majority and rule a particular state. If a party represents more than 4 states then such parties are considered as national parties. In the 61 years since India's independence, India has been ruled by the Indian National Congress (INC) for 48 of those years. The party enjoyed a parliamentary majority barring two brief periods during the 1970s and late 1980s. This rule was interrupted between 1977 to 1980, when the Janata Party coalition won the election owing to public discontent with the controversial state of emergency declared by the then Prime Minister Indira Gandhi. The Janata Dal won elections in 1989, but its government managed to hold on to power for only two years. Between 1996 and 1998, there was a period of political flux with the government being formed first by the right-wing nationalist Bharatiya Janata Party (BJP) followed by a left-leaning United Front coalition. In 1998, the BJP formed the National Democratic Alliance with smaller regional parties, and became the first non-INC and coalition government to complete a full five-year term. The 2004 Indian elections saw the INC winning the largest number of seats to form a government leading the United Progressive Alliance, and supported by left-parties and those opposed to the BJP. On 22 May 2004, Manmohan Singh was appointed the Prime Minister of India following the victory of the INC & the left front in the 2004 Lok Sabha election. The UPA now rules India with the support of the left front. Previously, Atal Bihari Vajpayee had taken office in October 1999 after a general election in which a BJP-led coalition of 13 parties called the National Democratic Alliance emerged with a majority. Formation of coalition governments reflects the transition in Indian politics away from the national parties toward smaller, more narrowly-based regional parties. Some regional parties, especially in South India, are deeply aligned to the ideologies of the region unlike the national parties and thus the relationship between the central government and the state government in various states has not always been free of rancour. Disparity between the ideologies of the political parties ruling the centre and the state leads to severely skewed allocation of resources between the states.

Politics in China:

| The politics of the People's Republic of China take place in a framework of a single-party socialist republic. The leadership of the Communist Party is |
|elected in the Constitution of the People's Republic of China. State power within the PRC is exercised through the Communist Party of China, the Central People's |
|Government and their provincial and local counterparts. Under the dual leadership system, each local bureau or office is under the theoretically co-equal |
|authority of the local leader and the leader of the corresponding office, bureau or ministry at the next higher level. The will of Chinese citizens is expressed |
|through the legislative bodies of the People's Congress system. People's Congress members at the county level are elected by voters. These county level People's |
|Congresses have the responsibility of oversight of local government, and elect members to the Provincial (or Municipal in the case of independent municipalities) |
|People's Congress. The Provincial People's Congress in turn elects members to the National People's Congress that meets each year in March in Beijing.[1] The |
|ruling Communist Party committee at each level plays a large role in the selection of appropriate candidates for election to the local congress and to the higher |
|levels. |

Overview:

The PRC's population, geographical vastness, and social diversity frustrate attempts to rule from Beijing. Economic reform during the 1980s and the devolution of much central government decision making, combined with the strong interest of local Communist Party officials in enriching themselves has made it increasingly difficult for the central government to assert its authority.[2] Political power has become much less personal and more institutionally based than it was during the first forty years of the PRC. For example, Deng Xiaoping was never the President of China or Secretary of the Chinese Communist Party, yet he was for a decade the leader of China. Today the authority of China's leaders are much more tied to their institutional base. Central government leaders must increasingly build consensus for new policies among party members, local and regional leaders, influential non-party members, and the population at large. However, control is often maintained over the larger group through control of information. The Chinese Communist Party considers China to be in the initial stages of socialism. Many Chinese and foreign observers see the PRC as in transition from a system of public ownership to one in which private ownership plays an increasingly important role. Privatization of housing and increasing freedom to make choices about education and employment severely weakened the work unit system that was once the basic cell of Communist Party control over society. China's complex political, ethnic and ideological mosaic, much less uniform beneath the surface than in the idealized story of the Propaganda Department of the Central Committee of the Communist Party of China, resist simple categorization.[3] As the social, cultural and political as well as economic consequences of market reform becoming increasingly manifest, tensions between the old -- the way of the comrade -- and the new -- the way of the citizen -- are sharpening. Some Chinese scholars such as Zhou Tianyong, the vice director of research of the Central Party School, argue that gradual political reform as well as repression of those pushing for overly rapid change over the next thirty years will be essential if China is to avoid an overly turbulent transition to a middle class dominated polity.[4] [5] Some Chinese look back to the Cultural Revolution and fear chaos if the Communist Party should lose control due to domestic upheavals and so a robust system of monitoring and control is in place to counter the growing pressure for political change.

Communist Party:

Main article: Communist Party of China The more than 63 million-member Communist Party of China (CPC) continues to dominate government. In periods of relative liberalisation, the influence of people and organisations outside the formal party structure has tended to increase, particularly in the economic realm. Under the command economy system, every state owned enterprise was required to have a party committee. The introduction of the market economy means that economic institutions now exist in which the party has limited or no power. Nevertheless, in all governmental institutions in the PRC, the party committees at all levels maintain an important role. Central party control is tightest in central government offices and in urban economic, industrial, and cultural settings; it is considerably looser over government and party organizations in rural areas, where the majority of China's people live. Their most important responsibility comes in the selection and promotion of personnel. They also see that party and state policy guidance is followed and that non-party members do not create autonomous organizations that could challenge party rule. Particularly important are the leading small groups which coordinate activities of different agencies. Although there is a convention that government committees contain at least one non-party member, a party membership is a definite aid in promotion and in being in crucial policy setting meetings. Theoretically, the party's highest body is the Party Congress, which is supposed to meet at least once every 5 years. Meetings became irregular during the Cultural Revolution but have been periodic since then. The party elects the Central Committee and the primary organs of power are formally parts of the central committee.
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Chinese political system:
The primary organs of power in the Communist Party include: • The Politburo Standing Committee, which currently consists of nine members; • The Politburo, consisting of 22 full members (including the members of the Politburo Standing Committee); • The Secretariat, the principal administrative mechanism of the CPC, headed by the General Secretary; • The Central Military Commission; • The Central Discipline Inspection Commission, which is charged with rooting out corruption and malfeasance among party cadres.

Government:

Main article: Government of the People's Republic of China The primary organs of state power are the National People's Congress (NPC), the President, and the State Council. Members of the State Council include the Premier, a variable number of vice premiers (now four), five state councilors (protocol equal of vice premiers but with narrower portfolios), and 29 ministers and heads of State Council commissions. During the 1980s there was an attempt made to separate party and state functions, with the party deciding general policy and the state carrying it out. The attempt was abandoned in the 1990s with the result that the political leadership within the state are also the leaders of the party, thereby creating a single centralized locus of power. At the same time, there has been a convention that party and state offices be separated at levels other than the central government, and it is unheard of for a sub-national executive to also be party secretary. Conflict has been often known to develop between the chief executive and the party secretary, and this conflict is widely seen as intentional to prevent either from becoming too dominant. Some special cases are the Special Administrative Regions of Hong Kong and Macau where the Communist Party does not function at all as part of the governmental system, and the autonomous regions where, following Soviet practice, the chief executive is typically a member of the local ethnic group while the party general secretary is non-local and usually Han Chinese. Under the Constitution of the People's Republic of China, the NPC is the highest organ of state power in China. It meets annually for about 2 weeks to review and approve major new policy directions, laws, the budget, and major personnel changes. Most national legislation in China is adopted by the Standing Committee of the National People's Congress. Most initiatives are presented to the NPCSC for consideration by the State Council after previous endorsement by the Communist Party's Politburo Standing Committee. Although the NPC generally approves State Council policy and personnel recommendations, the NPC and its standing committee has increasingly asserted its role as the national legislature and has been able to force revisions in some laws. For example, the State Council and the Party have been unable to secure passage of a fuel tax to finance the construction of freeways.

Administrative divisions

Political divisions of the PRC | |[pic]
For a larger map, see here. | | | | | |Local government:

Currently, local government in the People's Republic of China is structured in a hierarchy on four different levels. With the village being the grassroots (usually a hundred or so families), and not considered part of the hierarchy, local government advances through the township, county, prefecture or municipality, and the province as the geographical area of jurisdiction increases. Each level in the hierarchy is responsible for overseeing the work carried out by lower levels on the administrative strata. At each level are two important officials. A figure that represents the Communist Party of China, colloquially termed the Party chief or the Party Secretary, acts as the policy maker. This figure is appointed by their superiors. The head of the local People's Government, is, in theory, elected by the people. Usually called a governor, mayor, or magistrate, depending on the level, this figure acts to carry out the policies and most ceremonial duties. The distinction has evolved into a system where the Party Secretary is always in precedence above the leader of the People's Government. After Deng Xiaoping took power in 1978 greater autonomy has been given to provinces in terms of economic policy implementation as well as other areas of policy such as education and transportation. As a result, some provincial authorities have evolved tendencies of operating on a de facto federal system with Beijing. Prominent examples of greater autonomy are seen in the provinces of Guangdong and Zhejiang, where local leaders do little to adhere to the strict standards issued by the Central Government, especially economic policy. In addition, conflicts have arisen in the relations of the central Party leaders with the few provincial-level Municipalities, most notably the municipal government of Shanghai and the rivalry of former Beijing mayor Chen Xitong with President Jiang Zemin. The removal of Shanghai Municipality Party Secretary Chen Liangyu in September 2006 is the latest example. China's system of autonomous regions and autonomous prefectures within provinces are formally intended to provide for greater autonomy by the ethnic group majority that inhabits the region. In practice, however, Beijing will often appoint loyal party cadres (almost always a Han Chinese) to oversee the local work as Party secretary, while the ethnic Chairman of the region's government is regarded as its nominal head. Power rests with the Party secretary. To avoid the solidification of local loyalties during a cadre's term in office, the central government freely and frequently transfers party cadres around different regions of the country, so a high ranking cadre's career might include service as governor or party secretary of several different provinces.

People's Liberation Army

Main article: People's Liberation Army The Communist Party of China created and leads the People’s Liberation Army. After the PRC established in 1949, the PLA also became a state military. The state military system inherited and upholds the principle of the Communist Party’s absolute leadership over the people’s armed forces. The Party and the State jointly established the Central Military Commission that carries out the task of supreme military leadership over the armed forces. The 1954 PRC Constitution provides that the State President directs [tongshuai] the armed forces and made the State President the chair of the Defense Commission (the Defense Commission is an advisory body, it does not lead the armed forces). On September 28, 1954, the Central Committee of the Chinese Communist Party re-established the Central Military Commission as the leader of the PLA and the people’s armed forces. From that time onwards, the system of joint system of Party and state military leadership was established. The Central Committee of the Communist Party leads in all military affairs. The State President directs the state military forces and the development of the military forces managed by the State Council In December 1982, the fifth National People’s Congress revised the State Constitution to provide that the State Central Military Commission leads all the armed forces of the state. The chair of the State CMC is chosen and removed by the full NPC while the other members are chosen by the NPC Standing Committee. However, the CMC of the Central Committee of the Communist Party of China remained the Party organization that directly leads the military and all the other armed forces. In actual practice, the Party CMC, after consultation with the democratic parties, proposes the names of the State CMC members of the NPC so that these people after going through the legal processes can be elected by the NPC to the State Central Military Commission. That is to say, that the CMC of the Central Committee and the CMC of the State are one group and one organization. However, looking at it organizationally, these two CMCs are subordinate to two different systems – the Party system and the State system. Therefore the armed forces are under the absolute leadership of the Communist Party and are also the armed forces of the state. This is a uniquely Chinese system that ensures the joint leadership of the Communist Party and the state over the armed forces.

Start from speech

the two countries’ systems are totally dissimilar. If China wants to build a new six-lane expressway, it can bulldoze its way through any village in its path. In India, if you want to widen a two-lane road, you could be tied up in court for a dozen years over compensation entitlements.

When China built the Three Gorges dam, it created a 660-kilometer long reservoir that necessitated displacing two million people – all accomplished in 15 years without a fuss in the interest of generating electricity. When India began the Narmada Dam project, aiming to bring irrigation, drinking water, and power to millions, it spent 34 years (so far) fighting environmental groups, human rights activists, and advocates for the displaced all the way to the Supreme Court, while still being thwarted in the streets by protesters.
(Pics of parliament n teimein square )

Detail Comparision in different fields

1) Demographics: China’s demographics are not dissimilar to those of the leading developed countries. The birth rate having fallen, and life expectancy continuing to rise, the outlook is for an absolute decline in the number of children and young adults as well as a big increase in the number of middle aged and elderly. The end result will be a much older population. Moreover, as the working age population shrinks as a share of the total, economic growth could slow due to slow growth in the labor force barring an increase in productivity growth. On the other hand, further privatization could lead to more productive investments and, hence, faster productivity growth. Also, an older population could eventually lead to a lower personal savings rate. In India, on the other hand, the population is much younger and continues to grow more rapidly. In the coming years, the number of young adults will continue to rise. Thus India may possess a window of opportunity for a few decades during which its growth could accelerate due to accelerated labor force growth. This depends crucially, however, on having sufficient economic flexibility to allow for the creation of millions of new jobs. Regulatory obstacles to job growth, combined with inadequate saving, high government deficits, and poor infrastructure could stymie the type of job creation India needs. Still, all other things being equal, demographics should work in India’s favor.

2) Infrastructure:
3) Manufacturing: Clearly, China’s success has been related to its vast increase in manufactured exports. Manufacturing accounts for 39% of China’s output while in India the figure is 16%. Which is a better situation? While there is no simple answer to that question, it should be noted that the situations for both China and India are somewhat outside the bounds of what is normal. China appears to be excessively dependent on manufacturing and has a somewhat underdeveloped service sector. In part this is a legacy of communism which encouraged industrial output and failed to recognize the value of services. In part it is also due to the encouragement of large-scale investment by foreign manufacturing companies. The result is an export-related manufacturing industry characterized by high productivity, high quality, and low costs. In India, on the other hand, goods production is relatively low by global standards. This is, in part, due to the legacy of regulations that discouraged economies of scale in manufacturing. Most such rules have been rescinded in the past 15 years. Still, the economic climate in India has been advantageous to small startups (such as service oriented companies) rather than large-scale manufacturers.

4) I.T. and services sector; Rapid progress in information technology in the past decade brought about another unexpected phenomenon. Many companies in the United States (US) are now exporting many jobs, even in the services sector, to India, China and other countries to take advantage of their low cost, and highly skilled work force. About three million service jobs are expected to be outsourced from the US mostly to Bangalore, India by the year 2015. This phenomenon is not limited to private sector alone. Many state and local governments, starving for cash, are beginning to outsource jobs in information technology to foreign countries. Outsourcing is hitting even skilled jobs that were once thought to be safe across a wide range of white-collar work force. The main reason for the speed and size of this shift is the nature of service work. Unlike manufacturing jobs which need years of time and billions of dollars to erect plants overseas, service jobs need only a desk, a computer and Net access. The recent trend of jobs migrating from the United States to India and China has created an economic and political storm in the US. China and India have so far scooped up most of the jobs and they are now home to the biggest overseas operations of some U.S. companies.

Jobs are being farmed out to these two destinations in particular because both countries offer cheap labor rates and have different areas of expertise. The cost of an entry-level programmer in China is 30% to 50% less than one in Chicago. Additionally, a combination of factors like standardized business application, better online cooperative tools and increased bandwidth have recently precipitated the rise of off-shoring.

Of the two countries, India remains the No. 1 choice for many U.S. companies because of the maturity of its outsourcing market and its telecom infrastructure. But China is quickly imposing itself as a cheaper alternative, especially attractive to companies eager to explore its huge local market. Other countries like the Philippines, Singapore, Russia and Ukraine have lately surfaced as interesting alternatives to the two giants. But they lack experience and, in some cases, political stability.

In the upcoming years, India is expected to continue its move up the food chain and take on some of the more complex outsourced tasks
To many people, outsourcing means eliminating jobs in the US and exporting them to poor countries such as India and China. However, many well known economists are of opinion that outsourcing is closely related to global trade and is beneficial to all concerned parties. They assert that people in every region of the world would be able to obtain the best quality goods at the lowest prices.

India now is said to be the back office of many banks, a magnet for labor-intensive, tedious programming, and the customer service voice of every company from British Airways to Microsoft (New Scientist, 2005). It is reported that during the past five years alone, over 100 Information Technology (IT) and scientific companies have located their Research & Development (R&D) labs in India. These are not routine drudge jobs. High-tech companies are coming to India seeking innovators of the future world. Their recruits are young graduates fresh from the Indian universities and elite Indian Institutes of Technology (IIT). The knowledge revolution is on and some senior scientist and officials believe that India can short-cut the established path to industrial development and move straight to a knowledge economy

5) Trade:
The most dramatic success story in India-China relations is in the economic area. Both economies are growing fast. By some estimates, while the two countries’ share of world population will fall from 37% to 34% by 2040, their share of global GDP, measured by purchasing power parity (PPP), will rise from 16% to 52%. The gap between China’s explosive growth and India’s has narrowed, but it appears unlikely that India will overtake China’s economic size in the next few decades. Two-way trade reached over $ 38 billion in 2007. By 2010, India and China are likely to be trading $60 billion annually, rather than the $40 billion previously predicted. China is now India’s largest trade partner for merchandise trade, although U.S. imports of Indian information technology services bring total trade with the U.S. to $50 billion. The countries’ current trade arrangement is lopsided, however. India runs a $6.8 billion trade deficit, and its exports are overwhelmingly raw materials while it imports mainly manufactured Chinese goods. By contrast, the United States is India’s largest export market. Agriculture : It is wrong to blame developing nations, China and India for the current global grain crisis.

Niu Dun, vice minister of agriculture, made those remarks Saturday at a seminar on grain security at the ongoing 2008 Summer Davos Forum held in this northern metropolis. He said an energy shortage and cost increases for agricultural production are the root factors behind the grain shortage. Developing economies, which include China, have recorded significant deficit in world farm produce trade and increasing export costs. As a result, agricultural production has been adversely affected and farmers incomes squeezed in these nations and regions.

AGRICULTURAL REFORMS :

President Hu Jintao and Prime Minister Wen Jiabao are trying to draft farming and health care reforms before next October’s congress of the Communist Party so as to contain dissatisfaction and unrest among farmers. During a recent three-day visit to Henan, Mr Hu said that reforms that began 30 years ago must continue. Thirty years ago the Communist Party under Deng Xiaoping ended collective farming, leasing land to farmers and their families. The change was a great success, increasing farm output by 400 per cent.

Praising reforms introduced 30 years ago, Hu not only said they must continue, but that in the future, “we have to develop modern agriculture” and “public services in rural areas.”
One of problems facing Chinese agriculture is the fact that land belongs to the state and local government. Village chiefs and businessmen have often worked together to seize land from local communities for residential or industrial development, creating tensions and unrest that are increasingly turning violent.

According to government sources, at least 50 per cent of social unrest in China is due to land expropriation. Even so the government has always been opposed to granting farmers ownership to the land. However, it agriculture and land ownership might be reformed this October when the Communist Party meets.

6) Sports

Sports in India:

Field hockey

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The Indian Hockey team at the 1936 Berlin Olympics Field hockey is India's national game. Until the mid 20th century, India dominated international hockey, winning 8 Olympic gold medals, the World Cup in 1975 and were runners-up in the 1973 World Cup. The Indian player Dhyan Chand, arguably the most famous Indian hockey player, was described as a 'wizard' by the European press. However, India's recent performance have been below par and India is currently ranked 8th in the world. Even though cricket has by far overtaken hockey in popularity, hockey still strikes an emotional chord especially with the older generation. India's men's hockey team recently won the Asia Cup held in Chennai, defeating South Korea by a very convincing margin. However, they failed to qualify for the Beijing Olympics, the first time they have not made it to the Olympics since 1928.

Cricket

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The Indian cricket team in action in the Wankhede Stadium
Cricket is by far India's most popular sport. It has contributed many famous players to the game such as Sachin Tendulkar, Sourav Ganguly, Sunil Gavaskar , Kapil Dev and Rahul Dravid. India won the 1983 Cricket World Cup under Kapil Dev, and finished as runner up in the 2003 World Cup under Sourav Ganguly. India also won the first (and only) World Championship of Cricket in 1985 under Sunil Gavaskar, and more recently, the ICC World Twenty20 in 2007 under Mahendra Singh Dhoni. The administrative body that runs both the international and domestic teams is called the BCCI (Board of Cricket Control in India). There are two main domestic tournaments in India: the Ranji trophy and the Duleep Trophy.More recently, two Twenty20 leagues have started up; the Indian Cricket League (ICL) and the Indian Premier League (IPL). The two leagues are competing fiercely with each other. Most cricket boards have banned the ICL players.

Football (soccer)

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Salt Lake Stadium in Kolkata, India is the world's second largest soccer stadium with 120,000 seating capacity. Main articles: Football in India and India national football team Football (soccer) is one of the major sports in India. It was introduced during the British occupation, and in some areas of the country it is equally popular as cricket. India was an Asian powerhouse till the sixties, but gradually the standard of football has gone down compared to other countries and currently India ranks 153 in the FIFA Rankings as of the 29th of June 2008. India was the Asian Games Champion in 1951 & 1962 and were 4th in 1956 Melbourne Olympics.[1] The AIFF (All India Football Federation) is the parent body of football in India. The league structure in India follows a pyramid pattern with the ONGC I-League at the top most tier. There were 10 teams in the inaugural I-League 2007-08. It is followed by 2nd Division National Football League, 3rd Division National Football League and Local Leagues. Apart from the leagues, The Federation Cup is India's premier knock-out Cup tournament. The current I-League Champion is Dempo SC, Goa and winner of the Federation Cup is Kingfisher East Bengal FC, Kolkata.

Lawn tennis

Tennis is popular among Indians in urban areas. However, India's fortunes in the Grand Slams singles have been unimpressive although Leander Paes and Mahesh Bhupathi have won many Men's Doubles and Mixed Doubles Grand Slam Titles. Leander Paes has also won an Olympic Bronze medal in the singles competition at the 1996 Atlanta Games. In Davis Cup, India have been runners-up twice, in the years 1974 and 1987. The most successful Indian men's singles players have been Vijay Amritraj, Ramesh Krishnan, Ramanathan Krishnan and Leander Paes. Sania Mirza, is the only notable Indian woman tennis player, having won a WTA title and breaking in to the Top 30 WTA ranking.

Chess

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Indian chess grandmaster Vishwanathan Anand is the current World Chess Champion. Chess, which is widely believed to have originated in India, is one of the most popular board games here. It is thought that chess may have originated in India, although given that it can be seen to have been played as early as the eighth century, it is difficult to say where exactly it could have been originated. Nonetheless, in its early days, chess was played in India. It has been quite a popular game from the recent past, but players lack sponsors. India has produced one of the all-time great chess players of the world Vishwanathan Anand. Other grandmasters are emerging from different states, including Parimarjan Negi, world's youngest International master and Koneru Humpy, world's junior champion.

Kabaddi

Main article: Kabaddi Kabaddi originated from Karnataka, Andhra Pradesh and Tamil Nadu, the southern states of India, but is also popular in states of Punjab and Haryana.The sport highlights Agility and most importantly hand eye coordination. This sport is played by a person called a "raider" goes to one side where 4 teammates will be holding hands forming a semi-circle. The raider has to try to touch one of the teammates and run back to his line. But the teammates holding hands can grab the raider and pin him down, which will earn their team a point. These are just the simple rules, there are more complex rules. India bagged gold at the Asian Games 2006 men's event and won a gold in kabaddi world cup held in India.

Shooting

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Shooting used to be a pastime for the maharajahs of India. Lately, India has produced several champions in shooting. Indian shooter,Abhinav Bindra,is the current Olympic champion,having won gold for India in the 10 m Air rifle event at the Beijing games 2008. In the 2003 world championships, Rajyavardhan Singh Rathore won the bronze medal in the double-trap event in Nicosia. At the 2004 Olympics, he won the silver medal, the first shooting medal for the country in the Olympics. In 2006 ISSF World Shooting Championships at Zagreb, Croatia, Abhinav Bindra won the 10m Air Rifle, Manavjit Singh Sandhu won the Trap event, and the Indian team won the Silver in the Trap event. At the 2006 ISSF World Cup Gagan Narang won the gold in the 10m Air Rifle event in Guangzhou, China, Rajyavardhan Singh Rathore won the gold in the double trap event at Cairo, Egypt. Manavjit Singh Sandhu also ranked 2nd in the World Cup at Kerrville, TX, USA in 2006. In 2008, Ronjan Singh Sodhi won the World Cup in double trap at Belgrade with a world-record equaling performance. Gagan Narang won the bronze medal in the 10m Air Rifle at the 2008 ISSF World Cup. At the 2008 Olympics, Abhinav Bindra won the gold medal for India in the 10m air rifle event. This is the first individual gold medal for India in any Olympic discipline.

Boxing

Boxing is one of the lesser profiled sports in India. India is yet to produce a world champion in any weight class. In November 2007, India's M. C. Mary Kom won the best boxer title and also secured a hat-trick of titles. India is a regular medal-holder at Asian Games and Commonwealth Games. In 2008 Beijing Olympics Vijender Kumar won a bronze medal in the middleweight boxing category and Akhil kumar and Jitender Kumar qualified for the quarterfinals.
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[pic] Delhi will host the 2010 Commonwealth Games; the second-largest multi-sport event in the world. Mountain biking is not widely organized for a variety of reasons, including the availability of gear and support groups. It is pursued by individuals who use either locally modified cycles or imported mountain bikes. A group of Puneites have an online presence.
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Sports in China:

History

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An ancient form of football from China, Cuju Dragon boat racing dates back about 2500 years ago and remains a traditional event held around China every year. There is evidence that a similar sport to Football was played in China around 1000 AD, leading some modern historians to suggest that Football in fact originates in China. From the Song Dynasty on Tai Chi Chuan and similar qigong martial arts activities became popular in China. The influx of modern sports appeared in China since the beginning of the 20th Century. The People's Republic of China has emphasized on sports and the government funds and trains young talented players into professional players, especially in the mid-20th century. Ping pong is one of the biggest amateur recreational sports in China today, with an estimated 200 million players. Badminton is also well established and quite popular in China. According to CCTV Sports Channel, the gold-medal women's volleyball game of the 2004 Olympics drew 30% of TV-owning households; China vs. Brazil in the 2002 World Cup drew 18% of TV-owning households. Basketball and soccer are also shown on TV. Popular amateur sports include table tennis, badminton, martial arts and various forms of pool. China's professional sports are in its developmental stages.

Types of sports

Badminton

Because of its relative simplicity, inexpensive equipment, and accessibility to venues, Badminton is a very established and popular sport in China. Famous Chinese badminton players include Lin Dan, Zhang Ning, Gao Ling, Huang Sui, and Xie Xingfang. It's a popular recreational sport and amateur leagues exist across the country.

Baseball

Baseball in China first appeared in 1863 with the establishment of the Shanghai Baseball Club by American medical missionary Henry William Boone.[1][2]. Organized baseball games were established with a game between the St. Johns University and the Shanghai MCA baseball club in 1905. However, in 1959 Mao Zedong disbanded all teams and outlawed baseball.[3] After the Cultural Revolution ended, baseball activities restarted, and the China Baseball Association formed in 1974.[4] In 2002, the China Baseball League was formed, and China participated in the 2006 World Baseball Classic. However, it is not a popular sport and it is often seen by Chinese as a mere American curiosity due to its slow pace. Defeats of the national team to Taiwan, Japan, and South Korea may help change the trend as Chinese become more aware of the game's internationalization.

Basketball

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Yao Ming in an interview Yao Ming has popularized basketball and the National Basketball Association has an inspired public relations effort to expand the sport but soccer has achieved greater public relations penetration with a greater TV spectatorship. However, there is evidence that trend is changing. Massive television audiences for basketball games during the 2008 Beijing Olympics ( especially the China-US match on the men's side) have led many to believe that basketball is not far from overthrowing table tennis and association football as the most played and watched sports in China, respectively. As basketball was only invented in 1898 however, it is a questionable assertion that China "is the third oldest country that plays basketball after USA and Canada." Since the arrival of Houston Rockets superstar Yao Ming in the NBA in 2002, the game has grown considerably in the world's most populated country. Some experts estimate as many as 300 million of China's 1.3 billion population now play basketball. The first professional team in China was a team that started in Shenyang and was sponsored by the Anshan Steel Company. The Chinese Basketball Association was established in 1995 and in 2004 it expanded to 12 teams. The fact that USA is starting to notice Chinese players after Yao Ming's success (compared to Wang Zhizhi and Mengke Bateer), and young CBA players such as Yi Jianlian entering the NBA are examples of this change in trend.
Unlike NBA, and very much like the European systems, Chinese basketball uses the system of promotion and relegation for its leagues.

Snooker

Although pool, or more specifically, billiards, has long been a popular street recreation sport in China, Snooker's popularity has increased over the last few years in China. It can partly be attributed to the ascension of young Chinese player Ding Junhui who has since broken into the international Top 10. More and more young Chinese players are breaking onto the professional circuit such as Liang Wenbo and Liu Chuang who both qualified for the last 32 of the World Snooker Championship 2008, with Liang going on to reach the quarter-finals where he faced a snooker legend in China, Ronnie O'Sullivan. Snooker is played by an estimated 50 million Chinese people, and there are now over 300 Snooker clubs in Beijing alone. Some believe that China should host more tournament events, and one day may even host the Snooker World Championship itself.[6]

Table tennis (Ping Pong) Main article: Table tennis
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Current World No.1 in men's table tennis, Wang Hao Ping Pang Qiu is the official name for the sport of table tennis in China. Apart from the national representative team, the table tennis community in China continues to produce many world-class players, and this depth of skill allows the country to continue dominating recent world titles after a short break during the 1990s. The overwhelming dominance of China in the sport has triggered a series of rules changes in the International Table Tennis Federation and as part of the Olympics. Wang Hao is currently one of the highest-ranked Chinese table tennis players, and the highest-ranked player in the world. Deng Yaping is regarded by many as one of the greatest table tennis player of all time. The sport played an important role in China's international relations; in April 1972, the US table tennis team were invited to visit China, an event later called "Ping Pong Diplomacy". Table tennis is the biggest amateur recreational sport in China today, with an estimated 300 million players.

Tennis

Tennis is a growing recreational sport in China, although access to tennis courts can be limited in densely populated urban areas. Recently Chinese tennis players, especially women, have seen success internationally both at the amateur level and professionally. International tennis tournaments receive wide coverage on Chinese sporting channels.

Traditional sports

Traditional sports with distinct Chinese characteristics are also very popular, including martial arts, taijiquan or shadow boxing, qigong (a system of deep breathing exercises), xiangqi and weiqi. Taijiquan is a kind of Chinese boxing, combining control of breath, mind and body. It emphasizes body movement following mind movements, tempering toughness with gentleness and graceful carriage. Qigong is a unique Chinese way of keeping fit. It aims at enhancing health, prolonging life, curing illness and improving physiological functions by concentrating the mind and regulating the breath. There are various entertaining and competitive sports activities in the minority-inhabited areas, for example, wrestling and horsemanship among Mongols, Uygurs and Kazaks; Tibetan yak racing; ethnic Korean "seesaw jumping"; crossbow archery among the Miao, and dragon-boat racing among the ethnic Dai ethnic minority.
Olympic Games See also: China at the Olympics
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The Beijing 2008 Olympics logo Before the People's Republic of China was founded in 1949, Chinese athletes had participated in three Olympic Games but won nothing. Since 1949, China has participated in six summer and seven winter Olympics, winning 112 gold medals in summer Olympics. At the Los Angeles, Barcelona and Atlanta Olympics, China came fourth in the gold medals table, and second at the Athens Olympics. In 1979 China resumed its membership on the International Olympic Committee (IOC). In 1981 He Zhenliang was elected an IOC member, marking a new period in relations between China and the Olympics and cooperation with the IOC. From then on, Chinese sports circles started to popularize and promote the Olympics. In July 2001, Beijing finally succeeded in its bid to bring the 2008 Olympic Games. The Beijing Organizing Committee for the Games of the XXIX Olympiad (BOCOG), established at the end of 2001, set the themes for the 2008 Games as "Green Olympics", "High-tech Olympics" and "Humanistic Olympics". Since December 2003, 30 Olympic venues have begun to be built, following public bidding for their design and construction. Seven venues, including the National Stadium and the National Swimming Center have ushered in a new period of contemporary architecture for Beijing. The centerpiece of the 2008 Games will be the "the bird's nest" National Stadium. With a capacity of 91,000 spectators, the stadium will host the opening and closing ceremonies as well as track-and-field events. According to the budget released by BOCOG in September 2003, construction of the venues will cost about US$2 billion and the financing system framework has been basically determined. Beijing will have spent at least 180 billion yuan on infrastructure construction, much of the expenditure devoted to 142 large-scale projects including high speed transportation networks, environmental protection and creation of information technology systems. Another plan is to exploit the experience of preparing and hosting the 2008 Olympics to turn Beijing into an international sports center.

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Competitive results In 2004 Chinese athletes won a total of 106 gold medals in 27 sports events in Olympic Games, World Championships and World Cups, of which 53 were Olympic golds in 17 events. At the 28th Olympic Games, China made its best ever Olympic showing, with a tally of 63 medals, including 32 golds, 17 silvers and 14 bronzes, coming first in the medals table, achieving a major breakthrough in China's sporting history. Back in March 1959, at the 25th World Table Tennis Championships held in Germany, the table-tennis player Rong Guotuan won the first world title in China's sporting history. It was followed by many more successes. By the end of 2004 Chinese athletes had altogether won 1,800 world championships and broken 1,119 world records. In the 16 years since 1989, Chinese athletes have won 1,446 world championships, accounting for 80.3 percent of the total; and broken 737 world records, making up 65.9 percent of the total. It was a period when China's competitive sports developed continuously and rapidly. At the 2004 Olympics, China took home 63 medals, 36 of them (57.1 percent of the total) being won by young athletes; 10 of the gold medal winners were under 20 years old. This demonstrates the increasing maturity of China's young athletes and growing overall strength in competitive sports. At this Olympics, Chinese athletes made outstanding achievements in tennis, canoeing and track and field. Hurdling star Liu Xiang became the first Chinese man to win gold in an Olympic track event, finishing first in the 110-meter hurdles and equaling the world record of 12.91 seconds. In canoeing Meng Guanliang and Yang Wenjun won the men's C2 500 final, China's first Olympic gold in aquatic sports. Sun Tiantian and Liu Ting won the women's tennis doubles final, China's first ever tennis gold. The results in competitive sports were down to a training system which is constantly being perfected. It is based on youth amateur sports schools and basic-level clubs, with teams representing localities as the backbone, and the national team at the highest level. The training system ensures that China elite teams maintain a year-round squad of some 20,000 athletes. The most popular sports in China, for people of all ages are as follows; Ping-Pong, basketball, volleyball, swimming, gymnastics,and shadow boxing.

Anti-doping

On February 3, 2004, the State Council proclaimed the Anti-Doping Regulations, stipulating in detail for the first time regulations concerning the doping control, anti-doping obligations, doping examination and monitoring, legal liabilities, etc. The Regulations have been in force since March 1, 2004.
7)Military strength:
In 2006 India’s active military personell numbered over 1,325,000 while China’s was significantly higherat 2,255,000. In the air defence area, China’s PLA (People’s Liberation Army) Air Force has 9,218 aircrafts of which about 2300 are combat aircrafts, operating from its 489+ air bases. The Indian Air Force has 3382 aircrafts which includes 1335 combat aircrafts operating from 334+ land bases and its sole aircraft carrier INS Viraat.
The best combat aircrafts in China’s PLAAF are Russian Su-30 MK and indigenously built,
4th generation J-10 fighters. Indian Air Force, on the other hand has French built Dassault Mirage 2000s and Russian Su-30 MKI as the best aircrafts in its combat fleet (no indigenous fighters or aircrafts have been built by India so far). Indian Navy is the world’s eighth largest navy with a with a fleet of 145 vessels consisting of missile-capable warships, advanced submarines, the latest naval aircrafts and an aircraft carrier in its inventory.It is experienced both in combat and rescue operations during wartime and peace as seen from its wars with Pakistan in 1971, the December 2004 Tsunami, etc. On the other hand, China’s PLA Navy with its 284 fleet is quantitatively larger but primitive in actual experience and training as compared to the Indian Navy. China has no aircraft carriers in its naval fleet at present but is slated to build and induct an aircraft carrier by 2010.

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In strategic nuclear defence and delivery systems China’s PLA is miles ahead of India’s nuclear forces. China’s nuclear arsenal which started stockpiling in 1964, contains more than 210 nuclear warheads. The most powerful ones among China’s nuclear arsenal have yields of over 4 megatons. In comparison, India’s strategic nuclear force which started stockpiling after the 1998 Shakti tests, has about 50-70 warheads at present. The most powerful among India’s nuclear warheads has an yield of 0.05 megatons which is minuscule, compared to China. India’s nuclear delivery system consists of bombers, supersonic cruise missiles and medium range ballistics missiles. Agni 2, India’s longest range, deployed ballistic missile is capable of a range of 2500 km, carrying a single nuclear warhead of 1000 kg. In stark contrast, China’s nuclear delivery system is far more advanced than India’s, with multi-warhead MIRV capable ICBMs like DF-5A [12000+ km] and DF-4 [7500+ km]. It also possesses submarine launched SLBMs like JL-1 [4500+ km] and strategic fighter bombers like Su-27 Flanker in its nuclear weapons delivery arsenal.

India should be wary of China's military modernisation: Army

With China rapidly modernizing its military, India needs to be wary of likely implications, which will impact the nation's security, Army chief Deepak Kapoor warned on Thursday.
"We need to take note of likely implications of China's military modernisation, improvement in infrastructure in Tibet [Images] Autonomous Region and other related issues, which could impact our security in the long run," Kapoor said. Delivering the 'National Security Lecture' at the strategic affairs think tank Institute of DefenceStudies and Analyses (IDSA), Kapoor said China, the largest and the most powerful neighbour, and a rapidly rising power, continued on the path of high economic growth, combined with rapid military modernisation. In his lecture on 'Changing Global Security Environment With Specific Reference to Our Region and its Impact on the Indian Army', he said, "We have differences related to the boundary question, which are being resolved by special representatives of both the governments." Pointing out that regular visits at the highest level have further added to the dimensions of constructive engagement and mutual confidence in relationship between the two neighbours, the General said economic engagements and continued efforts to amicably resolve boundary issues had ensured peace along the border. Later, to a query from reporters, Kapoor said Indian Army was not aware of any build up of China's People's Liberation Army (PLA) in Tibet, as some reports suggested, for an adventure inside Indian territory after Beijing [Images] Olympics [Images].
On recent reports of incursions by PLA in Arunachal Pradesh, Sikkim and other areas along the Line of Actual Control (LAC), the Army chief reiterated the transgressions occured due to differing perceptions of LAC, and at times due to confusion among troops on ground, especially when units changed and new units got posted there. "But that is why we have boundary negotiating teams that have been established by both India and China, which are having a constant dialogue on a regular basis," he said.Stating that transgressions of a minor nature do not get resolved at either flag meetings, which are held periodically, or at meetings between interlocutors from both sides, Kapoor ruled out commencement of hostilities due to differing preptions between troops on ground.

8)Space exploration:

space exploration in India: The Indian Space Research Organisation (Bhāratīya Antarix Anusandhān Sangaṭn) or ISRO, is India's national space agency. With its headquarters in Bangalore, the ISRO employs approximately 20,000 people, with a budget of around Rs. 41 billion (US$940 million at August 2008 exchange rates). Its mandate is the development of technologies related to space and their application to India's development. The current Chairman of ISRO is G. Madhavan Nair. In addition to domestic payloads, it offers international launch services. ISRO currently launches satellites using the Polar Satellite Launch Vehicle and the GSLV for geostationary satellites.

History of Indian space research

India's experience in rocketry began in ancient times when fireworks were first used in the country, a technology invented in neighboring China, and which had an extensive two-way exchange of ideas and goods with India, connected by the Silk Road. Military use of rockets by Tipu Sultan during the Mysore War against the British inspired William Congreve to invent the Congreve rocket, predecessor of modern artillery rockets, in 1804. After India gained independence from British occupation in 1947, Indian scientists and politicians recognized the potential of rocket technology in both defence applications, and for research and development. Recognizing that a country as demographically large as India would require its own independent space capabilities, and recognising the early potential of satellites in the fields of remote sensing and communication, these visionaries set about establishing a space research organisation.

1960-1970

Dr. Vikram Sarabhai was the founding father of the Indian space program, and is considered a scientific visionary by many, as well as a national hero. After the launch of Sputnik in 1957 he recognized the potential that satellites provided. India's first prime minister, Jawaharlal Nehru, who saw scientific development as an essential part of India's future, placed space research under the jurisdiction of the Department of Atomic Energy in 1961. The DAE director Homi Bhabha, who was father of India's atomic programme, then established the Indian National Committee for Space Research (INCOSPAR) with Dr. Sarabhai as Chairman in 1962. The Indian Rohini programme continued to launch sounding rockets of greater size and complexity, and the space programme was expanded and eventually given its own government department, separate from the Department of Atomic Energy. On August 15th 1969 the Indian Space Research Organisation (ISRO) was created from the INCOSPAR programme under the DAE, continued under the Space Commission and finally the Department of Space, created in June 1972.

1970-1980

In the 1960s Sarabhai had taken part in an early study with NASA regarding the feasibility of using satellites for applications as wide as direct television broadcasting, and this study had found that it was the most economical way of transmitting such broadcasts. Having recognized the benefits that satellites could bring to India from the very start, Sarabhai and the ISRO set about designing and creating an independent launch vehicle, capable of launching into orbit, and providing the valuable experience needed for the construction of larger launch vehicles in future. Recognizing the advanced capability India had in building solid motors with the Rohini series, and that other nations had favoured solid rockets for similar projects, the ISRO set about building the technology and infrastructure for the Satellite Launch Vehicle (SLV). Inspired by the American Scout rocket, the vehicle would be a four-stage all-solid vehicle.
Aryabhata - India's first satellite Meanwhile, India began developing satellite technology anticipating the remote sensing and communication needs of the future. India concentrated more on practical missions,directly beneficial to people instead of manned space programs or robotic space explorations.[1] The Aryabhata satellite, launched in 1975 from Kapustin Yar using a Soviet Cosmos-3M launch vehicle, was India's first satellite.[2]
SLV - India's first satellite launch vehicle By 1979 the SLV was ready to be launched from a newly-established second launch site, the Satish Dhawan Space Centre (SDSC). The first launch in 1979 was a failure, attributed to a control failure in the second stage. By 1980 this problem had been worked out. The first indigenous satellite launched by India was called Rohini-1.

1980-1990

Following the success of the SLV, ISRO was keen to begin construction of a satellite launch vehicle that would be able to put truly useful satellites into polar orbits. Design of the Polar Satellite Launch Vehicle (PSLV) was soon underway. This vehicle would be designed as India's workhorse launch system, taking advantage of both old technology with large reliable solid-stages, and new liquid engines. At the same time, it was decided by the ISRO management that it would be prudent to develop a smaller rocket, based on the SLV, that would serve as a testbed for many of the new technologies that would be used on the PSLV. The Augmented Satellite Launch Vehicle (ASLV) would test technologies like strap-on boosters and new guidance systems, so that experience could be gained before the PSLV went into full production. Eventually, the ASLV was flight tested in 1987, but this launch was a failure. After minor corrections, another launch was attempted in 1988, this launch again failed, and this time a full investigation was launched into the cause, providing valuable experience, specifically because the ASLV's failure had been one of control - the vehicle could not be adequately controlled on removal of the stabilizing fins that were present on the SLV, so extra measures like improved maneuvering thrusters and flight control system upgrades were added. The ASLV development had also proven useful in the development of strap-on motor technology.

1990-2000

It was not until 1992 that the first successful launch of the ASLV took place. At this point the launch vehicle, which could only put very small payloads into orbit, had achieved its objective. In 1993 the time had come for the maiden flight of the PSLV. The first launch was a failure. The first successful launch took place in 1994, and since then, the PSLV has become the workhorse launch vehicle - placing both remote sensing and communications satellites into orbit, creating the largest cluster in the world, and providing unique data to Indian industry and agriculture. Continual performance upgrades have increased the payload capacity of the rocket significantly since then. Under pressure, Glavkosmos halted the transfer of the associated manufacturing and design technology to India. Until then, ISRO had not been affected by technology transfer restrictions thanks to the political foresight of Sarabhai in indigenizing technology. However, elements of the ISRO management cancelled indigenous cryogenic projects in anticipation of the Russian deal. Instead of canceling the deal, Russia agreed to provide fully built engines instead, and India began developing an indigenous cryogenic engine to replace them, in the GSLV-II. There is still some controversy over the issue of the cryogenic engine acquisition, with many pointing to the decision to cancel indigenous projects as being a grave mistake - India would have likely had a fully indigenous engine operating by the time the GSLV launched if indigenous development had started from day one. Despite this one uncharacteristic slip in an otherwise extremely successful programme, and the loss of potential payload capacity over the decade that occurred as a result, ISRO pressed on.

2000-2010

Currently the most powerful Indian launch vehicle in operation; the first development flight of the GSLV took place in 2001. The program’s benefits have been scrutinized due to frequent payload cutbacks and delays. The indigenous cryogenic engine for the GSLV's upper stage was tested in 2007. ISRO has reconsidered the effectiveness of the GSLV for the needs of the 2000-2010 decade and began development of an indigenous and new heavy launch vehicle, GSLV III. The latter is not related to the GSLV-I/II and will be based around the proven format of liquid main stages and two solid strap-on boosters. It will resemble the Ariane 5 and other modern launchers and will have sufficient payload capacity for manned spaceflight.. The inaugural flight is scheduled for 2008.
Chandrayaan 2008: ISRO intends to send a small robotic spacecraft into lunar orbit mounted on a modified PSLV. It will survey the surface of the moon in greater detail than ever before and attempt to locate resources. Countries, including the US have expressed interest in attaching their own payloads to the mission. ISRO and NASA have an agreement to carry two NASA probes as a payload.
AVATAR Scramjet: This is a long-term project to develop a reusable launch vehicle (RLV) restricted to the launch of satellites. Theoretically, AVATAR would be a cost effective launch vehicle for small satellites and therefore a commercially competitive launch system. A scaled-down technology demonstrator is scheduled to fly c.2008. Recently ISRO successfully tested a scramjet air breathing engine which produced Mach 6 for seven seconds. ISRO will continue research related to using scramjets in RLVs after 2010. ISRO has entered the lucrative market of launching payloads of other nations. Prominent among them are the launches of Israel Space Agency’s, TecSAR spy satellite, and Israeli Tauvex-II satellite module. The CARTOSAT-2, launched on the July 2006, carried a small Indonesian payload of 56 kg. Leveraging its expertise in cryogenic technology to design Hydrogen fuel cells to store and handling of hydrogen; ISRO teamed up with Tata motors to develop a prototype hydrogen passenger car for Indian market, expected to hit road by end of 2008 On November 15, 2007 ISRO achieved a significant milestone through the successful test of indigenously developed Cryogenic Stage, to be employed as the upper stage of India's Geosynchronous Satellite Launch Vehicle (GSLV). The test was conducted for its full flight duration of 720 seconds on November 15, 2007 at Liquid Propulsion test facility at Mahendragiri, in Tamil Nadu. With this test, the indigenous Cryogenic Upper Stage has been fully qualified on the ground. The flight stage is getting ready for use in the next mission of GSLV (GSLV-D3) in 2008. On April 28, 2008 ISRO successfully launched 10 satellites in a single mission further boosting it's capabilities in space. This includes 690 kg CARTOSTAT-2 and another 83 kg mini Indian satellite, IMS-1; and eight other nano satellites made by various universities; and research and development institutions in Canada and Germany offered at a subsidized price as part of a goodwill gesture by the Indian Department of Space.

Satellites

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INSAT-1B Since its formation, ISRO has launched numerous satellites; they include the IRS (Indian Remote Sensing) satellite series, the INSAT (Indian National Satellite) series (in Geo-Stationary orbit), the GSAT series (launched using GSLV) and METSAT 1 (launched by PSLV). As of 2007, the total number of satellites of all varieties built by ISRO is 45.

INSAT series

Main article Indian National Satellite System The Insat series of satellites includes the 1 (A, B, C, D), 2 (A, B, C, D,E), 3 (A, B, C, E) and 4 (A, B, C) series. They provide Communication and Television relay services all over India. Most of these satellites were launched by the Arianespace for ISRO. But, the latest in the series, the INSAT-4CR, was launched on September 2, 2007 from Satish Dhawan Space Centre SHAR, Sriharikota with India’s own Geosynchronous Satellite Launch Vehicle, GSLV-F04,. This was the fifth flight of GSLV.

IRS series

Main article Indian Remote Sensing satellite The IRS series provide remote sensing services and are composed of the 1 (A, B, C, D). The future versions are named based on their area of application including OceanSat, CartoSat, ResourceSat. Some of the satellites have alternate designations based on the launch number and vehicle.

METSAT/Kalpana series

METSAT or Meteorological Satellite, is the first satellite built by ISRO to provide meteorological information and data. In 2003, METSAT was renamed as Kalpana in honour of the late astronaut Kalpana Chawla. METSAT 2/Kalpana 2 is expected to be launched by 2007

Technology Experiment Satellite

As the name suggests, Technology Experiment Satellite is an experimental satellite aimed primarily at fulfilling the role of spy satellite. The satellite has an image resolution of 1m or less, making India the only country after US to offer such high-resolution images commercially . The Kargil War prompted the rapid inclusion of a dedicated espionage satellite. It was first used to produce images of Iraqi military installations that were destroyed after US invasion in 2003.

Future plans

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India's Chandrayaan-1
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The 32m DSN Antenna at the Indian Deep Space Network, Byalalu ISRO is nearing the completion of the development of the first mission to the Moon, named Chandrayaan-1. The launch is now expected in the third week of October 2008. It will be India's first step towards exploration of deep space. In 2005 the Indian government approved Rs.364 crore (3,640,000,000) Indian rupees for the planned moon mission expected to be launched by 2008. Apart from ISRO made instruments, Chandrayaan carries science instruments from NASA and ESA as opportunity payloads free of cost and with the understanding of sharing the data from the instruments. If the mission goes as planned, ISRO would be the sixth space agency in the world, after the Soviet Union, NASA, Japan, European Space Agency and China, to have sent an unmanned mission to the Moon. ISRO is also planning a second version of Chandrayaan named Chandrayaan-2. According to the ISRO Chairman G. Madhavan Nair, "The Indian Space Research Organisation (ISRO) hopes to land a motorised rover on the moon in 2010 or 2011, as a part of its second Chandrayaan mission". An agreement for this mission was signed with Russia's Federal Space Agency recently. According to the release on ISRO's website, ISRO will have the prime responsibility for the Orbiter and Roskosmos will be responsible for the Lander/Rover. An orbiter to Mars is also under discussion, though no concrete funding decisions for such a mission have been made yet. ISRO also plans to undertake a totally indigenous manned space exploration in the next decade by planning to send a person to space by 2014.. Some technologies needed for a manned mission are already under development and ISRO has already setup a Deep Space Network in Byalalu village near Bangalore. Indian Deep Space Network comprises mainly of two powerful dish antennas measuring 32-metre and 18-metre diameter to track all its future space missions. A third antenna measuring 11-meter diameter will be also erected for ASTROSAT mission. ISRO has started the development of the next launch vehicle version, known as the GSLV Mark-III, with an indigenous cryogenic engine capable of launching satellites weighing up to 6 tons in the final configuration. ISRO will be launching various satellites for European and Russian space programs including Agile and the GLONASS series of navigation satellites. In December 2005, during the annual Indo-Russian summit in Moscow, the two states agreed on joint development of the GLONASS-K series, which will be launched by Indian launchers. ISRO also plans to launch payloads SRE-1, RISAT-1, ASTROSAT, OCEANSAT series, INSAT series, CARTOSAT series, and GSAT series over the next couple of years. The RLV-TD, a technology demonstrator of possible scramjet launch technology, will fly around 2008. [10] ISRO's most advance earth observation satellite under-development is CARTOSAT-3, which will have a resolution of 0.30 metre.
Launch vehicles
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This image shows the types of satellite launch vehicles of the Indian Space Research Organisation (ISRO)
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space exploration in China:

The space program of China was initiated soon after the founding of the PRC. It was the fruit of the Cold War with its technological, military and geopolitical races. China was launched into the space race in order to thwart nuclear blackmail from the United States that only a nuclear deterrent could counter. Eventually, this space program would cover anti-ballistic missile system, anti-satellite weaponries, reconaissance and intelligence satellites, manned spacecrafts, space laboratories, space stations and spaceplanes, culminating after the end of the Cold War with plans for Moon bases and extraterrestrial exploration.As a result, after half a century of endeavours, China ranks third among the space-faring nations. | |[pic]

History and recent developments

Although the black powder and the rocket, were all first mastered in ancient China, it was not until after the proclamation of the PRC that a space program was started.

During the Sino-Soviet Treaty of Friendship period

After American nuclear bombing threats during the Korean War as early as October 1951, and then again during the Taiwan Strait Crisis of 1954-1955, Chairman Mao was forced to admit that the human waves doctrine had reached its limit and decided that only a nuclear deterrent of its own would guarantee the security of the newly founded PRC. Thus, Chairman Mao announced for the first time his decision to develop China's own strategic weapons including nuclear bombs and associated missile vector for the warheads during a Chinese Communist Party Central Committee meeting held on January 15, 1955. The Chinese nuclear weapons program was designated by the codename of "02".
“ |
We not only need more aircrafts and pieces of artillery, we also need the Bomb.
In today's world, if one doesn't want to be bullied, one must have it. |” | |—Chairman Mao[1] | |The Fifth Academy of the Defence Ministry was founded on October 8, 1956 with Qian Xueshen who was just deported from the United States after being accused of being a communist during the red scare, as director, starting the development of the first ballistic missile program, adopted on March 1, 1956 known as the first Twelve-Year-Plan for Chinese aerospace.
After the launch of mankind's first artificial satellite Sputnik 1 by the Soviet Union on October 4, 1957, Chairman Mao decided during the National Congress of the CCP on May 17, 1958 to make China an equal with the superpowers , by adopting Project 581 with the objective of placing a satellite in orbit by 1959 to celebrate the 10th anniversary of the PRC's founding.This goal would be achieved in three phases: developing sounding rockets first, then launching small satellites and in the final phase large size satellites.
The construction of China's first missile test base code-named Base 20 started on April 1958, and entered service on October 20 of the same year.
During the cordial Sino-Soviet relations of the 1950s, the USSR engaged in a cooperative technology transfer program with the PRC under which they trained Chinese students and provided the fledgling program with a sample R-2 rocket.
The first Chinese missile was built in October 1958 as a reverse-engineered copy of the Soviet R-2 SRBM, itself an upgraded version of a German V-2 rocket. Its range was 590 km, weighting 20.5 tons, propelled with liquid oxygen and alcohol.
China first ever T-7M sounding rocket was successfully launched from Nanhui launch site on February 19, 1960.
China started to develop MRBM in July 1960, with increased range double of that of the R-2.
But a Khrushchev was denounced as revisionist, Chairman Mao asserting that there had been a counter-revolution in the Soviet Union, and that capitalism had been restored, the friendly relation between the two countries turned to confrontation. As a consequence, all Soviet technological assistances were abruptly withdrawn after the 1960 Sino-Soviet split.

After the Sino-Soviet split

Only 17 days after the last Soviet expert had left China, a first Soviet built R-2 rocket fuelled with Chinese made propellant was launched with success on September 10, 1960.
The first successful launch of a Chinese 1059 SRBM missile copy of the R-2 was conducted only two months later on November 5, 1960. The missile was also designated DF-1.
Thus the first DF-2 MRBM was tested on March 21, 1962 but failed.
With the Cold War ever escalating nuclear blackmail, the decision is taken by Chairman Mao Zedong in December 1963 to give China a missile defence system capacity. During a conference held in February 2, 1964, directive 640 (640指示)is adopted latter known as Project 640.
Development eventually continued with the redesigned DF-2A MRBM which was successfully tested on June 29, 1964. It would enter service by the end of 1966.
The first successful flight of a biological experimental T-7A(S1) sounding rocket transporting eight white mice was launched and recovered on July 19, 1964 from Base 603
The first successful Chinese atomic bomb, code-named 596, was detonated on October 16, 1964.
China started to develop the DF-5 ICBM program in August 1965. It carries a single nuclear warhead and has a maximum range of 12000 km.
The building of a second missile test site in the Shanxi Province, farther away from the northern border to support the country’s ballistic missile programme was decided in November 1966, called Northern Missile Test Site
On October 27, 1966, a nuclear-tipped DF-2A missile was launched from Jiuquan and the 20 kilotons yield nuclear warhead exploded at the height of 569 meters over the target in Lop Nor or Base 21 situated 894 km away.
In December 26, 1966, China tested its first indigenously developed DF-3 IRBM with success. With a single-stage, single-warhead and a maximum range of 2500 km.
The JL-1 SLBM development was initiated in March 1967 for the Type 092 SSBN also in development.
In June 17, 1967, China successfully detonated its first thermonuclear device.
The development of the DF-4 IRBM began in 1967 in parallel with the single-stage DF-3. As the space race between the two superpowers reached its climax with the conquest of the Moon, Chairman Mao and Zhou Enlai decided in July 14, 1967 that the PRC should not be left behind by starting China's own manned space program. China's first spacecraft designed for human occupancy was named Shuguang-1 in January 1968China's Space Medical Institute was founded on April 1, 1968, and the Central Military Commission issued the order of starting the selection of astronauts. Space medical research were also conducted. As part of the "third line" effort to relocate critical defense infrastructure in the relatively remote interior, the construction of a new space center code-named Base 27 for supporting the manned space program in the mountainous region of Xichang in the Sichuan province was decided, located farther from the Soviet border, thus safer. Major nuclear and space research centers were all relocated in these regions buried in deep facilities, such as China Aerodynamics Research and Development Center , home of Asia's largest wind tunnels facilities, China Academy of Engineering Physics known as the 9th Academy in charge of nuclear weapon design both located in Mianyang, Yibin Nuclear Fuels Factory known as Plant 812 engaged in the fabrication of plutonium fuel rod, production and processing of plutonium for nuclear weapons, the production of tritium and Li-6 deuterium, or Guangyuan plutonium production reactor known as Plant 821, China’s largest plutonium separation facility. With Chairman Mao’s slogan calling for people to dig deeper, massive underground cities also called the Underground Great Wall were dug nation wide to shelter the population from nuclear holocaust, linking for instance Beijing to Tianjin. A first liquid-propellant DF-3 medium-range ballistic missile was successfully launched from the Northern Missile Test Site on December 18, 1968, inaugurating the test site.
In August 1969, the first heavy-lift SLV program called FB-1 was started by Shanghai’s 2nd Bureau of Mechanic-Electrical Industry. The all liquid two stages launcher was derived from the DF-5 ICBM. Only a few months later, a parallel heavy-lift SLV program also based on the same DF-5 ICBM was started in Beijing by the First Space Academy and known as CZ-2.
The DF-4 was used to develop the Long March-1 SLV. Based on the two Nitric acid/UDMH liquid propellant first stages, a new-design spin up orbital insertion solid propellant rocket motor third stage was added. A first attempt to launch a satellite before Japan ended in failure on November 16, 1969. [16]
The first DF-4 liquid-propellant with two-stage, single-warhead IRBM was tested with success on January 30, 1970. The addition of a second-stage allowed the missile to increased its range to over 4750 km.
The second satellite launch attempt on April 24, 1970, allowed China to launch the 173 Dong Fang Hong I (meaning The East Is Red I) also known as Mao-1, making it the heaviest among the first satellites placed into orbit by a nation, while even exceeding the combined masses of the first satellites of the other four previous countries.
The third stage of the CZ-1 was specially equipped with a 40 m2 solar reflector (观察球) deployed by the centrifugal force developed by the spin up orbital insertion solid propellant stage. Therefore, the faint magnitude 5 to 8 brightness of the DFH-1 making the satellite at best barely visible with naked eyes was consequently dramatically increased to a comfortable magnitude 2 to 3, allowing the Dong Fang Hong Ⅰ to be the shiniest among the first satellites placed into orbit by a nation.
Thus, the PRC joined the USSR, United States, France, and Japan as the fifth nation in the very selective club of spacefaring powers.
The PRC's second satellite was launched with the last of the CZ-1 SLV on March 3, 1971. The 221 ShiJian-1 (SJ-1) scientific experimental satellite was notably equipped with a magnetometer and cosmic-ray/x-ray detectors.
The first screening process of astronauts ended on March 15, 1971, with 19 astronauts chosen.
Thus, with the newly acquired confidence following the milestone technological achievement of Two bombs and one satellite projects , the first manned space program known as Project 714, was officially adopted in April 1971 with the goal of sending two astronauts into space by 1973 aboard the Shuguang spacecraft. By that date, the program was already cancelled due to political turmoil.
A first flight test of the DF-5 ICBM was carried out in October 1971.
Following the accomplishment of such technological prowess, the new prestige gained in the world stage allowed China to enter the club of Great powers. Consequently, on October 25, 1971, Resolution 2758 was passed by the United Nation General Assembly, withdrawing recognition of the ROC as the legitimate government of China, and recognising the PRC as the sole legitimate government of China.
On August 10, 1972, the new heavy-lift SLV FB-1 made its maiden test flight. This launch was only a partial success.
The CZ-2A launcher originally designed to carry the Shuguang-1 spacecraft was first tested in a launch on November 5, 1974, carrying China’s first FSW-0 experimental recoverable satellite, but failed.
After some redesign work, the modified CZ-2C placed successfully a year later on November 26, 1975, the FSW-0 No.1 recoverable satellite into orbit. The satellite was recovered three days later, thus making China the only third country in the world to master this technology.
After expansion works, the Northern Missile Test Site was upgraded as a test base in January 1976 to become the Northern Missile Test Base known as Base 25.

Olympic connection

On occasion of the 2008 Beijing Olympic Games, the torch relay and the opening ceremony implied an ambition for China to go further into space, as Wu Jiaxiang (senior researcher at the China Research Center for Public Policy of the China Society of Economic Reform explained in the China Youth Daily .Yang Liwei, the first astronaut of the manned spacecraft Shenzhou V, was the first torchbearer in Beijing, and the opening ceremony torch was lit by Li Ning after his 'run in-space'. The Olympic Games actually represent the development of civilization. The torch of the human civilization was lit in remote ancient, and was passed through the fishing times, slash and burn cultivation times, nomadic times, farming times to cross-seas trade times. After three types of civilization, cattle-backed, horsebacked and shipboarded, now the Chinese nation is finally heading toward a new space-shipboarded civilization era. The climax saw a giant globe rising from the center of the stadium similar to the launch of a spacecraft, effect accentuated by the spectacular blaze of fireworks launched into the starry night sky throughout Beijing. As performers circumnavigated the nine-ringed blue globe displaying orbital visions at the opening ceremony, the hue then turned slowly to yellowish, symbolising the future exploratory missions from the pale Blue Planet to the bright golden Saturnian world.

Peaceful uses of outer space

The PRC is a member of the United Nations Committee on the Peaceful Uses of Outer Space and a signatory to all United Nations treaties and conventions on space. The United States government has long been resistant to the use of PRC launch services by American industry due to concerns over alleged civilian technology transfer that could have dual-use military applications to traditional allied countries such as Pakistan, North Korea, Iran or Syria, and in 2000 announced an official embargo. Thus, financial retaliatory measures have been taken on many occasions against several Chinese space companies.
Organization
Initially the space program of the PRC was organized under the People's Liberation Army, particularly the Second Artillery Corps. In the 1990s, however, the PRC reorganized the space program as part of a general reorganization of the defense industry to make it resemble Western defense procurement. The China National Space Administration, an agency within the Commission of Science, Technology and Industry for National Defense currently headed by Sun Laiyan, is now responsible for launches. The Long March rocket which is produced by the China Academy of Launch Vehicle Technology, and satellites are produced by the China Aerospace Science and Technology Corporation. The latter organizations are state-owned enterprises; however, it is the intent of the PRC government that they not actively be state managed and that they behave much as private companies would in the West.
FUTURE PERSPECTIVE The working-age populations of US and China are expected to shrink in next two decades. In contrast, India will soon have the largest population in the world, overtaking China. By 2020, 47 per cent of Indians will be between the ages 15 and 59. It is certain that India is going to have the largest population of workers and consumers for a long time to come. Based on this situation, Goldman, Sachs & Company projects that India will have a sustained annual growth of 7.5 per cent after 2005. As Krizner (2005) states, China and India are rivaling one another and aggressively challenging the US for the spot of most favored FDI destination. China still maintains the No. 1 position, but India ascended from No. 6 to No. 3, just behind the US. India and China may be similar in many ways but the main difference is that while China is viewed as the “Factory of the world”, India is being recognized as the “Brain of the World” (India Country Profile, 2006). In a survey of executives from the world‟s largest companies conducted by the global management consulting firm, A. T. Kearney, the following findings were reported (Krixner, 2005).

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1. Global investors view China and India as distinctly different markets. China is viewed as the world‟s leading and fastest growing consumer market and India, as the world‟s BPO and IT services provider with long-term market potential.
2. Executives indicated that manufacturing and assembly activities will be offshored to China, while India leads for IT, BPO and R&D.
3. China‟s FDI inflows are larger and primarily capital-intensive, while Indian FDI inflows are smaller and skill-intensive, in IT areas.
4. Companies favor China over India for its market size access to export markets, government incentives, favorable cost structures, infrastructure and macroeconomics climate.
5. However, these same companies cite India‟s highly educated work force, management talent, rule of law, transparency, cultural affinity and regulatory environment as more favorable than China.

As Kripalani and Engardio(2003) observe, “quietly but with breath-taking speed, India and its millions of world class engineering, business and medical graduates are becoming enmeshed in America‟s New Economy in ways most people barely imagine. The brilliant, educated people of India are now taking the lead in colonizing cyberspace. The hidden hands of skilled Indians are present in interactive web sites of companies such as Lehman Brothers, and Boeing. While Wall Street sleeps, Indian analysts digest the latest financial disclosures of US companies and file reports in time for the next trading day. The Indian staff troll the private medical and financial records of U S consumers to determine if they are good risks for insurance policies, mortgages, or credit cards for American Express and J. P. Morgan Chase & Company.” As Goldman, Sachs predicts, if India can sustain its present growth rate it, will have the third largest economy by 2050, after the US and China. India is not yet a knowledge economy „superpower‟, but it is rapidly getting there.

By and large, India is strong in areas in which China needs to improve, notably software, while China excels at hardware and manufacturing, which India sorely lacks. So India’s Mahindra and Mahindra company manufactures tractors in Nanchang for export to the US. The key operating components of Apple’s iPod were invented by the Hyderabad company PortalPlayer, while the iPod itself are manufactured in China. Philips employs nearly 3,000 Indians at its “Innovation Campus” in Bangalore to write more than 20% of the company’s global software, which Philips’ 50,000-strong workforce in China then turns into brand-name goods.

In other words, the elephant is already dancing with the dragon. The only question is whether political tensions could bring the music screeching to a halt. There is no doubt that, whatever India’s legitimate differences with China’s Communist regime, cooperation is in the best interests of both peoples. After all, one plus one doesn’t only equal two; put together properly, it can add up to 11.

In 2002, then Chinese Premier Zhu Rongji visited the campus of Infosys in Bangalore, India. Addressing 4,000 software engineers, he said “you are number one in software. We are number three in hardware. If we put these together, we are the world’s number one.” Was he onto something? What exactly is the relationship between China and India and how will it evolve? First, it surprised the author of this report to find that there are no non-stop flights between New Delhi and Shanghai. It also turned out to be a terrible inconvenience. It certainly symbolized the lack of a significant economic relationship. Yet this should not have been a surprise. Consider the fact that, until recently, these two countries were not on particularly friendly terms. Yet today, things are changing rapidly – boding well for peace and economic transformation. Indeed, China’s current Premier recently said “cooperation is just like two pagodas, one hardware and one software. Combined, we can take the leadership position in the world. When the particular day comes, it will signify the coming of the Asian century.

‘India vs China’ is the classic Asian clash that market hungry global MNCs have been studying very closely for over a decade. And now for the first time ever, one international financial agency predicts that the Elephant is all set to out pace the dragon.

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