1. Introduction

This chapter presents a general comparative discussion on the economies of India and China. Two key points are highlighted. Firstly, the nature of business density in China and India acting as a proxy for the level of entrepreneurship. According to the World Bank (2016), new business density in India was 0.12 while in Hong Kong SAR, China it was 31.3. In terms of the level of entrepreneurship, China is at 60th position in the world with an entrepreneurial measure of 34.9; with India at position 98th in the world with an entrepreneurial measure of 24.9. Secondly, the nature of Total Factor Productivity in both countries over time. Furthermore, in the period 1950 to 2011, the percentage change in capital stock (productive assets) and Total Factor Productivity growth (proxy for the growth of knowledge) has been much faster in China then it has been in India, during the period 1950 to 2011.