GEM Report: U.S.A and India

Infrastructure
India is part of the developing world while the U.S is a member of the First World. This means that the level of infrastructural development in India is lower than that of the U.S. over the last decade, India has embarked on massive infrastructural projects that are designed to increase its infrastructural capacity. Superhighways, telecommunications
infrastructure and social services such as hospitals and schools, factories, and commercial institutions are being established. India’s power capacity is estimated to stand at $ 250 billion in the next four years. It has an extensive rail system, which earned the economy $18.2 billion in 2014 (Baksi 2014).
 The Indian government has a $ 137 billion budget for the revamping of the decrepit rail system (Baksi 2014). The money will go towards purchasing high-speed trains and the construction of better rail systems. The aviation industry in India is expected to be the third biggest in the world by the year 2020 (Baski, 2014). India is also on track to develop a robust space program. It has since successfully sent a team to explore space. On the other hand, the American infrastructure system is well established throughout the continent. America has embarked on a project that is designed to rebuild and renew its infrastructure to cater for future generations (Alexandrakis 2014). It has a well-developed transportation system. The system includes bullet trains and a state of the art shipping system. The aviation industry is the biggest in the world, with Boeing being the largest plane builder in the world.
America has a well-developed system of taxation, with the IRS charged with dealing with domestic taxation. The infrastructure establishment is carefully and strictly controlled by the federal and state authorities. India is an emerging economic giant and is still grappling with administrative deficiencies and institutionalized corruption.
Labor Efficiency
As an industrialized economy, the labor productivity of Americans is higher than that of Indians. India’s manufacturing sector is still growing at a slow pace. On the other hand, the productivity of Americans seems to be declining when compared to past periods.  The Indian economy is very slow in creating employment in the formal sector. Poorly structured labor laws have been identified as the biggest threats to job creation. In America, productivity in the manufacturing industry increased only by 1.8 percent in the last quarter of 2014. Employment in the light manufacturing industries increased slightly given the flow of investment in the sector. Because of India large labor force (India has a population of 1.3 billion people, most of them skilled or semi-skilled in industrial processes). As manufacturing jobs decline in America, they are increasing in India and other Asian economies (Baksi 2014). Other sectors of the economy in India are growing. India is now a world leader in medical tourism.
The ICT sector in India is also growing rapidly (Baksi 2014). Infused with talent from Ivy League Universities, the tech industry is growing exponentially. The same is happening in America (Alexandrakis 2014). The ICT sector is one of the fastest growing industries in the world. This growth is attributed to the availability of a favorable investment and creative climate. There is also higher efficiency in the service sectors of India and United States. India is slowly establishing a reputation for efficiency in the service industry, although it still has several challenges such as corruption, inadequate technical know-how, and intermittent government support.  The presence of viable commercial infrastructure that enables innovation has contributed to the high labor efficiencies in America (Alexandrakis 2014). The democratic workspace and the enactment of laws such as the Age Discrimination Act and the Disability Act have resulted in higher efficiency. There are fair labor practices protected and enforced by the law. In India, the regulatory framework is yet to develop into maturity, accounting for the lower levels of labor efficiency.