A Comparative Study On The Industrial Upgrading Of China And India Based On The Product Space Theory

China is the largest developing country.It has attracted world's attention.It's time to change the mode of economic development and promote industrial upgrading in the context of China's new economy.Industrial upgrading has powerful influence to promoting economic growth.So we should accelerate industrial upgrading and promote economic growth.The selection of the industrial policy and the path of industrial upgrading are very important.There is a divergence on industrial policy.Some hold that the industrial policy should follow the comparative advantage.Some insisted that the industrial policy ought to deviate from the comparative advantage.From the perspective of product space,this paper analysis the relationship between the path of industrial upgrading and the comparative advantage,through theoretical analysis,statistical analysis and quantitative analysis.Visualizing the path of industrial upgrading of India and China in the global product space.An empirical analysis of the influence that the productive capability has to industrial upgrading,with 1984-2014 export trade data.It shows that the industrial upgrading has deviated from comparative advantage in China,as well as in India.The deviation is mainly caused by the continuous innovation and the economic strategies.We should establish and complete the access and exit mechanism of industry,cultivate and encourage technological innovation,focus on the development of high-end equipment manufacturing industry and accelerate the development of intelligence and information technology industry,so as to promote the two countries to achieve the industrial upgrading.