India should open up more to China

Everyone points out that China-India bilateral trade, at roughly $19 billion in 2005 is a far cry from $2 billion in 1999. Indeed, the increase is to be celebrated. The Chinese don’t fear Indian competition. In fact, they don’t much think about India at all, compared to the time that India spends agonizing over the Chinese threat.

India and China have made an agreement to increase the bilateral trade to $ 40 billion by 2010. This is a good step to smoothen the relationship between the two countries. There is border dispute among between the two countries and they have fought a war. Now the need of the hour is to forget all the bad experiences of past and start afresh.

Both countries have become the favorite destination for investment by foreign firms and private equity investors. Their GDP is increasing more than 8 percent per annum. The two countries have a large population who is willing to work at the lowest wage according to world standard.

When china is able to attract investors in manufacturing sector, India is favorite destination for the service sector. So the growth of one country is not affecting the growth of another. These countries can help each other by supporting the other in their weak area with their expertise workforce. Indian companies like TCS have already started its operation in china.

China is very open to India when we compared it with India. Indians were worried about the Chinese goods when they were allowed to enter into the Indian market. But they are better off now because they improved their quality of their goods in order to compete with low quality Chinese products.

Chinese are very focused in their works. Now they are learning English for the next Olympic Games as well as to attract the service sector. They are sending delegates after delegates to Nasscom’s doors to figure out the software industry. India should learn many things from China. We have water problem and we are discussing whether to go for interlinking of the river. But China had this problem and they have solved it in proper time. In China they are investing in infrastructure in a planned manner. They are able to fulfill the demand of the supply of power even when the growth is more than 10 percent.

Source: THis is the analysis of the article by Tarun Khanna which came in Economic Times