India versus China: The inevitable comparison

Srinivas_K

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India versus China: The inevitable comparison

The first day of the World Economic Forum is vibrant and instructive. 'The China Context' session gave much food for thought, especially since India is invariably compared to China in terms of the global business they attract. In fact, India and China have seemingly always been up for comparison in the past. There has been no end to the debate around which of the two economies out-performs the other, and China seems to have emerged as the default favourite for a number of reasons. I have to admit that China's government has a strong reputation for thinking on its feet and leveraging global business opportunities. There is much to be said for a single, unopposed government that switches sails quickly and decisively in the face of global economic headwinds. China's focus on world-class infrastructure is also nothing short of admirable – and here, again, India would have to concede a certain shortfall.

However, the basic differences between India and China should not be ignored. One is comparing apples with oranges when it comes to government structure and economic policy-making. In any case, it looks like India may emerge as a stronger long-term player than China. This has become increasingly evident after the global economic downturn, which China addressed with exuberant stimulus packages and India tackled with far more circumspect fiscal policies. This circumspection is evident even today, and it is still turning out to be the more sustainable stance.

By 2030, India will have 800 million workers, with more than 590 people located in cities and per-capita income that is expected to increase 200 percent over the next two decades. India also has the world's largest pool of educated, English-speaking workers, and attracts jobs from service-oriented companies seeking talented knowledge workers. This includes the IT, ITeS, education and banking industries. Wages for those jobs are low by Western standards, but allow a much better standard of living than the labour-intensive jobs that typically go to China.

Greater disposable income, plus a political structure that protects businesses and workers from unfair government intervention, help to raise India's level of 'domestic consumption.' This makes India attractive to global companies as a market for their products and services, whereas China is seen mainly as source of cheap labor for exports. If Chinese workers raise their level of domestic consumption, they will eventually not be the world's cheapest labor pool anymore. Global companies will then move some of their manufacturing operations to other countries.

India's political system is more suited for long-term equity investments, while China holds more attraction for mid-term investors. Naturally, this also reflects on the country's real estate market via a more robust long-term health prognosis. However, interestingly we have seen two types of corporate occupiers heading to each of these two countries. The services, knowledge talent seeking companies are heading for India – demonstrated through growth in IT and ITES, banking etc. whilst the large scale manufacturing and skill based corporates are expanding their base in China.

In my opinion, India's scale of development stands a strong chance of outstripping that of China for a couple of fundamental reasons. The first is that most of the land in China is unrelentingly government-owned, which puts a default ceiling on overall availability. This is not the case in India. Moreover, India relies more on IT, which requires less land and infrastructure than manufacturing – which just happens to be China's forte. Also, Indian Grade A commercial space developers are a pretty wealthy and seasoned lot, with many of them holding substantial land banks.

Read more at: India versus China: The inevitable comparison - Moneycontrol.com

It is India that has the potential and also in the path of becoming a strong power, Indian sphere of influence will only increase from malacca straights to Africa and IOR to Central Asia.

This world order will change and is also Hegemonic too .......
 

CCP

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Far better than feeling good by manipulating stats!!!
You must feeling good by trolling.


-"India's political system is more suited for long-term equity investments, while China holds more attraction for mid-term investors."


this report is talking about long-term thing again. So, how long the term will be?
 
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Srinivas_K

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You must feeling good by trolling.


-"India's political system is more suited for long-term equity investments, while China holds more attraction for mid-term investors."


this report is talking about long-term thing again. So, how long the term will be?
India arrived to a juncture where every investor country is looking at India as an attractive destination and the process is happening as we speak.

At the same time Chinese are loosing the edge because of non availability of cheap labor. This Menace Asia is facing will be dealt accordingly.
 

CCP

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India arrived to a juncture where every investor country is looking at India as an attractive destination and the process is happening as we speak.

At the same time Chinese are loosing the edge because of non availability of cheap labor. This Menace Asia is facing will be dealt accordingly.
tell me, when do you think India can attract more investment than China does?

If the growth of China is depend on cheap labour, then India should already surpass China in investment long time ago.
 

no smoking

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Far better than feeling good by manipulating stats!!!
Oh, by manipulating stats, china becomes world second economy;
By manipulating stats, china earned billions of surplus from sino-india trading;
By manipulating stats, china becomes buggiest or second market of most products;
By manipulating stats, 97millions of chinese tourists flood the world in 3013;

Yes, I am feeling good!
 

sydsnyper

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Our chinese members may have a point here. We keep speculating about the future and feel good about it, whereas our political system is out and out confused with respect to ideology. The solution is - India first.

I would start with the following items:
1. Traitors are shot, period.
2. Anyone willfully acting against India are traitors
3. All corrupt politicians and bureaucrats are traitors
4. Put emphasis on the quality and cleanliness of our work and its presentability
5. Curb population
6. Put equal emphasis on food production and water resource management on a national scale (people cant chomp on industries if we only focus on industry)
7. Most of all, have pride in our country, ourselves and its rich heritage
8. Last but not the least, all leftists, arundhati roy zombies, communalists are traitors (this one is maybe a little harsh to speak, but we have too many of these nuts bogging down the whole system)
 

t_co

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Our chinese members may have a point here. We keep speculating about the future and feel good about it, whereas our political system is out and out confused with respect to ideology. The solution is - India first.

I would start with the following items:
1. Traitors are shot, period.
2. Anyone willfully acting against India are traitors
3. All corrupt politicians and bureaucrats are traitors
4. Put emphasis on the quality and cleanliness of our work and its presentability
5. Curb population
6. Put equal emphasis on food production and water resource management on a national scale (people cant chomp on industries if we only focus on industry)
7. Most of all, have pride in our country, ourselves and its rich heritage
8. Last but not the least, all leftists, arundhati roy zombies, communalists are traitors (this one is maybe a little harsh to speak, but we have too many of these nuts bogging down the whole system)
I usually hate invoking Godwin's Law so early in a thread, but you sound like a German politician from the 1920s.
 

hbogyt

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Seriously, what is with all this boasting about increasing population in an already over-populated country?
 

cw2005

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Whenever people comparing India and China, they always make certain assumptions and one of them has been "China would not be changed" in the future. This is a wrong assumption.

When the famous Deng told the Hongkongers that Hong Kong would be allowed to keep its systems without change in 50 years, "That is a joke", my Hong Kong friend told me. He said Hong Kong could progress because it had been changing every minute to adapt to the ever changing world.

China is doing this exactly. She copies Hong Kong's system, the way of thinking and even the colonial styled Police uniforms.

Forecast with wrong assumption without knowing is bad and with knowledge but want to neglect it to make oneself feeling better is worse.

I believe both India and China would be changing for betterment in the future.

By the way, anyone could tell me how to keep the top ten stat after I sign in this forum?
 

Mad Indian

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India versus China: The inevitable comparison

The first day of the World Economic Forum is vibrant and instructive. 'The China Context' session gave much food for thought, especially since India is invariably compared to China in terms of the global business they attract. In fact, India and China have seemingly always been up for comparison in the past. There has been no end to the debate around which of the two economies out-performs the other, and China seems to have emerged as the default favourite for a number of reasons. I have to admit that China's government has a strong reputation for thinking on its feet and leveraging global business opportunities. There is much to be said for a single, unopposed government that switches sails quickly and decisively in the face of global economic headwinds. China's focus on world-class infrastructure is also nothing short of admirable – and here, again, India would have to concede a certain shortfall.

However, the basic differences between India and China should not be ignored. One is comparing apples with oranges when it comes to government structure and economic policy-making. In any case, it looks like India may emerge as a stronger long-term player than China. This has become increasingly evident after the global economic downturn, which China addressed with exuberant stimulus packages and India tackled with far more circumspect fiscal policies. This circumspection is evident even today, and it is still turning out to be the more sustainable stance.

By 2030, India will have 800 million workers, with more than 590 people located in cities and per-capita income that is expected to increase 200 percent over the next two decades. India also has the world's largest pool of educated, English-speaking workers, and attracts jobs from service-oriented companies seeking talented knowledge workers. This includes the IT, ITeS, education and banking industries. Wages for those jobs are low by Western standards, but allow a much better standard of living than the labour-intensive jobs that typically go to China.

Greater disposable income, plus a political structure that protects businesses and workers from unfair government intervention, help to raise India's level of 'domestic consumption.' This makes India attractive to global companies as a market for their products and services, whereas China is seen mainly as source of cheap labor for exports. If Chinese workers raise their level of domestic consumption, they will eventually not be the world's cheapest labor pool anymore. Global companies will then move some of their manufacturing operations to other countries.

India's political system is more suited for long-term equity investments, while China holds more attraction for mid-term investors. Naturally, this also reflects on the country's real estate market via a more robust long-term health prognosis. However, interestingly we have seen two types of corporate occupiers heading to each of these two countries. The services, knowledge talent seeking companies are heading for India – demonstrated through growth in IT and ITES, banking etc. whilst the large scale manufacturing and skill based corporates are expanding their base in China.

In my opinion, India's scale of development stands a strong chance of outstripping that of China for a couple of fundamental reasons. The first is that most of the land in China is unrelentingly government-owned, which puts a default ceiling on overall availability. This is not the case in India. Moreover, India relies more on IT, which requires less land and infrastructure than manufacturing – which just happens to be China's forte. Also, Indian Grade A commercial space developers are a pretty wealthy and seasoned lot, with many of them holding substantial land banks.

Read more at: India versus China: The inevitable comparison - Moneycontrol.com

It is India that has the potential and also in the path of becoming a strong power, Indian sphere of influence will only increase from malacca straights to Africa and IOR to Central Asia.

This world order will change and is also Hegemonic too .......
Seems like a jingoistic article with no substance. And NO India cant survive on IT alone. It needs manufacturing sector development too, and no, it cant take development for granted. We need several serious labour/bureaucratic/political reforms. I doubt if we are heading in the right direction. A Hung parliament at the mercy of leftist loonatics is not exactly a great way for economic progress:rolleyes:(AAPtards)
 

Mad Indian

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I usually hate invoking Godwin's Law so early in a thread, but you sound like a German politician from the 1920s.
Whatever blame you can throw at Hitler, you cant discount his achievement of making his country a super-power
 

Srinivas_K

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Seems like a jingoistic article with no substance. And NO India cant survive on IT alone. It needs manufacturing sector development too, and no, it cant take development for granted. We need several serious labour/bureaucratic/political reforms. I doubt if we are heading in the right direction. A Hung parliament at the mercy of leftist loonatics is not exactly a great way for economic progress:rolleyes:(AAPtards)
That is the view of the author in the article, Yes I agree manufacturing and advancement in technology is the way forward. India is moving in that direction.
 

Mad Indian

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That is the view of the author in the article, Yes I agree manufacturing and advancement in technology is the way forward. India is moving in that direction.
I dont think so dude. India is anything but making strife in manufacturing.
 

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