The World's Largest Potential Free Market"

[Tolaha]

We are talking about Sino-India trade here, so we need to focus on the exchange rate between RMB and Rupee. The fact is Rupee has been depreciating even before anyone accusing China's currency manipulation.

The americans can argue "currency manipulation" because China did fixed its currency with dollars. India, however, can't claim itself a victim since its exchange rate perform even worse: it is jumping down no matter versus RMB or US dollars. Theoretically, india should benefit from its depreciating currency from 1990.

For example: an China product may worth 100 RMB in 2000, then its price in India could be around 500Rupee. With Rupee's depreciation, however, its price could be as high as 800Rupees in 2010 if we don't put in any other factors.

Most of the international trade is done in Rupees and Yuan?

My point is that Indian IT companies' strengths are not strength in Chinese market any more. It is not Chinese specifically block Indian companies. It is just indian companies don't change their working style to fit in Chinese market.

Let's take the example of India company's work for Bank of China, which is the biggiest IT outsourceing service contract for Indian IT company in China so far. One of my classmate happened to work in the project. There is several problems he listed:

1. Terrible language: very few indian managers can speak Chinese while it is difficult for Chinese managers to understand indian's english.
2. Bad communication: indians don't know who they should talk to and how they should talk.
3. Zero understanding of Chinese working code: flexibility, schedule and no excuse.
4. No knowledge of features of Chinese market.

In one word: they failed because they believe their success in western market should guarantee their success in Chinese market.








What are the markets that you claim India has dominance in?

Points that you mention are some of the basic challenges that any company faces when it goes overseas! Explain how Indian IT companies do pretty well in Spanish, Portuguese, French, Arab markets if Indian companies are incapable! If only you weren't such a loud croaking "frog in the well", you could atleast have been ignored!