According to the World Bank, India's average, annual growth rate, over the last 20 years (using gross domestic product), is approximately 5.4%, while China's is approximately 8.1%. Both countries have an equal population of approximately 1.3 billion. However, India is geared towards more of a democracy, while China is an autocracy. Additionally, during the last 2 years of Covid, India has seen a decrease in growth of over 7%, while China has seen positive growth of over 4%.

The textbook discusses scenarios, whereby monopolies, and for this discussion, oligopolies, are more advantageous, than perfect competition. For this discussion, let us think of India as a free market, which exhibits perfect competition, and China as an oligopoly (same characteristics as a monopoly). What might be a reason that China is more successful - economically - than India? Why are they driving higher annual growth rates, with larger increases in their standard of living than India, given that everything we know about economics, shows us that the consumer is better off with perfect competition? Please reference the textbook, as well as search for information on the internet to help support your reasoning. (HINT: Think about what an autocracy is, and how that might affect their market conditions)

textbook( Microeconomics. PRINCIPLES FOR A CHANGING WORLD.FIFTH EDITION. Eric P. Chiang)