There are several factors responsible for India lagging behind China in the global economic rate. The major over may the indicated as under:
1. Poor performance of the Indian industry, while, the Chinese industry registered a much higher and accelerated growth rate over the years.
2. China has industry based infrastructure of the economy. Industry sector contributed 51.1% of the China’s GDP in 2001, while service sector claimed 33.6% share.
On the other land, India has service-based economic structure. Service sector contributing to 48.4%, while industry sector claimed 26.5% share in 2001.
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India is banging on its success in rapid growth of software and information technology (IT) sector.
India has to soued up its growth in traditional industry and IT-related services.
Among other things, India has to give prime importance in development agenda to improve the country economic infrastructure industry, power, roads, ports and airports.
India needs, to reform her labour laws and industrial policy. Along with, entry of industry provision for exit is also required.
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India’s other problem is that of fiscal deficit. Steps must be undertaken towards speedy fiscal consolidation.
India has on upper hand in the IT sector because of her English speaking knowledge workers. China is also moving to reduce her knowledge gap in English. If China succeeds, India can be crowded out in this sector.
India has the problem of resource scarcity in tertiary education sector. A speedy training and ^education programme is needed for the human resource develoment.
India also needs a benevolent government with dedicated politicians who can be the statesmente par-excellnce.
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1. China is less capital-efficient in account of planned economy and part decisions in channelisation of investment flows.
2. Chinese companies are smaller and over diversified to convert globally. They believe in ideas of stored risks.
3. Public Health case is a worrying problem in both centric.
4. Global trend explosion of workgling overseas, on account of digitisation, the internet and speedy data networks.
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5. Basic global business tend to produce parts of products where there is the best cost of production.
6. GE Co. employs about 6,000 scientists and engineers in 10 foreign nations.
7. The real advantage is that the companies can tap the best talent due to globalisation of business.
8. When developing countries tend to reach perfection in specialisation in high-skilled areas, where the developed countries have competitive edge at present, the gain of globalisation to the developed economies will be lost.
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9. Champions of free trade will then take a different stand.
10. Flour CEO Alan Roechman recognised that in his Manila projects they have developed a core competitive advantage.
11. Out-sourcing has been largely resorted to for resource-saving as well as cost-cutting purposes.
12. India’s brainpower today, is largely reshaping corporate (p. 45) in the US ecoriomy.
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13. There are more IT engineers in Benglore (150,000) than in Silicon Valley (120,000) (p. 47).
14. Indiana is outsourcing to India to manage everything from accounting to fast-stamp programme.
15. India is using its brain-power, not musceles or muncels, as the catalyst agent of just- growth economy.
16. In comparison to China, India is for behind in exports and FDI. There, China’s growth rates is 10% p.a., while that of India 6% p.a.
17. India has seened into the manour of the Silicon Valley, for penetrated into America’s economic case (p. 50).
18. “Taxas Instruments Inc.” Banglore chp-design acquisition boast 225 patents.
19. Intel Inc.: Banglore campus is regarded as corporate crown jewels.
20. American, companies are shifting bill payment, hurman resources and other functions to new paperless centres in India.
21. China drove douch coete in manufacturing Indian services.
22. The government of India is also trying to solve the bottlenecks in Indian economy, one by one.
23. By 2020, 47% of Indian popular will be in the age group of 15-59. Presently, it is 35%.
24. While, the working-age population of America and China is likely to the shinhead.
25. Far Indian software engineer USD 10,000 annual salary is enough to live a much comfortable life.
26. As such, Banglore has emerged as the better innovation zones of the 21st century.
27. ‘The China Rice’ – three scarish words, meaning 30% to 50% less than time of the US industry.
28. China price is first in apparel, footwear, electronics to high-tech products.
29. US needs an entirely new business model to connect with China.
30. Motorola China Chairman Gene Delaney said: “Our commercial success in China is important to our competitiveness world-wide.”
31. The cheap cost of Chinese goods has kept inflation low in the USA, but at the cost of huge US trade deficit.
32. China’s competitive advantages are real, not built on government subsidies.
33. China is expanding its export base.
34. Chinese manufacturers must develop their own technology and go for innovation.
35. Chinese cos. have focused on training the work force and enterprise-management software:
i. More innovation
ii. Better goods
iii. Lower prices
iv. Newer plants.
36. China-made vaccum cleaner cost less than USD 100 at Wal-Mart. However, the US co- market share declined, when it was No. 1.
37. US motor business is under assault from Chinese competition.
38. The Chinese are geniuses using old, discarded equipment.
39. Successful Indian business firms such as Bharati Telecom, Tata Motor, ICICI Bank demenetre some distinguishing characteristics ability to deliver high-Q products at low prices.
40. By and large corporate India is in a better shape in comparison to corporate China.
41. Concept of cars on demand Tata: People’s Car. Basic components produced at Tata pants. Kits form, Franchisees trainal roadside garages will enable them. Car a commodity charged strategy from old traditional model of manufacturing solely and distributing through sole agents.
42. Apply people, technology and process to solve a business problem.” Kusien, Wipro.
43. Toyota-line efficiency now promotes India’s tech-services industry.
44. BPO (Business Process Outsourcing) handling clients’ call centre, accounting, human resources, etc.
45. Indian services Compances. have combined globalised work forces, super-efficient operation and dedication to customers.
46. Wipro goes Toyota ways:
- Continuous improvement
- Respect for employees
- Learning
- Change
- Kaizen system – i.e,. Soliciting employee suggestion for improvement
47. It revealed that: average minutes are rest for employees to regain optimal performance alfa-water and bathroom breake, Turn, water coolers were moved closer to people’s desk.
48. Productivity improved by 43 %.
49. Undue paper-work is reduced.
50. Empowerment on the job.
51. From Toyota way to Wipro way.
52. China’s multinations still beholden to the Panty – a blening and a burden too.
53. China’s power brands: GOME, Haeir, TCL, SVA.
54. China and India are gearing up as the new megamarkets.
55. China has a sole.
56. India is more profitable ultimate object at
57. Policy makers in a developing country should bring prosperity to its people. Prosperity rises when entrepreneurs innovate and invest their activities will generate more employment and income to put the economy on the ladder of prosperity.
The government should provide and support grenth limien-oriented capital investment for augmenting the physical and human resources in the country.
An accelerated rate of investment in the development infrastructure is needed. More investment is required for the education and training of the workforce. A targeted human capital development is essential for all the sectors.
58. Small is big in a developing country such as India.
59. The Indian policy-maker has diversified the car-markets. With the reduction in excise duty on small cars (not exceeding 4000 mm in length with an engine capacity under 1,200 cc) from 24% to 16%, since April, 2005 the market segment of the smaller cars have grown up. This segment account for 70% at the over one million cars sold annually in the Indian market.
60. India is also focusing on the expert of small cars globally. Currently, Hyundai, Maruti and Tata Motors exports Indian-model cars to America and Europe. Incidentally, Maruti Udyog which claimed a larger share around 70 per cent of Indian car market, recently, is facing a tough competition from Toyota and Hyundai. Honda Motors India to export 50% of its output.
61. Under the emerging situation of compact car wars in India, Indian manufacturers such as Maruti and Tata have to redesign their business strategy to defend their position aggressively through strong localisation element, cost-effectiveness and lowering prices distribution net’; devotion to R&D cells. Indeed with the accelerating smoothly, of India by 2010, the country’s domestic market for cars is likely to be doubled at least and 70% of it will be the small cars.
62. China, on the other hand, though claimed to be a low-cost manufacturing hub of Asia, has been focusing on the big car market segment (popularising high-margin sedans).
63. It follows the A growing opportunity is emerging for the dealers of small cars in Indian market.
64. Portfolio managers decisions should be based on transparency, diligence and a process- driven approach to investment.
65. Company group such as Ranbaxy has a solid reputation for an ethical and scientific approach to financial management.
66. An outsourcing for financial management would be of a great help. It does away with the need for extensive research and analysis, uptodate knowledge indigent efficiency and expertise.
67. Let China sleeps, for when she wakes she will shake the world,” is what the great French conqueror Napolean Bonaparte once felt has become true today.
68. Within a span of less than three decades of the post mad-era is seen today. China Miracle is a reality with the transformation of the Chinese country side into spraking cities with skyscrapers, wide roads, flyover, metro rails, cars such as Volsmagon and Haely-Davidsons, shopping malls such as Wal-Marts and Teskos. This has given a bigger C in the garment of BRIC (Brazil, Russia, India and China) economy on the global arena.
67. Indian economic elephant is unchained in recent years, yet Indian Miracle has not come on the surface. India’s physical and institutional infrastructure is still weak, roads are small, countryside is barren, slums are still sowing their strong roots and uglinenss.
68. The global business leaders are, turrad, alternated towards India because of her knowledge I industry India had excelled in information technology, IT-oriented service sector and business proven outsourcing.
69. When China is regarded as the factory of the world; India claimed to the ten services hub ] and laboratory of the globe.
70. For instance, China accounts for two-thirds of the shoes in the world markets, top-fifth of PCs and 85% of the worlds’ toys whereas India claim its 60% share in the global offshore industry and 40% of the BPO market. (Gupta, 2006),
71. For global players, now no more to discuss whether, India an cleiva? They tend to be in both. China and audio are already the biggest madulti for products such as cars, cell phones, steel.
72. By 2020, India will claim to be the youngest country in the world with a population of 547 million under the age-group of 0-25, while China will home an ageing population due to its strict population policy of one-child per family. This means, India could provide a much larger, more flexible and innovative workforce on the global economic drama. This can be an effective reality provided India focus to human capital development with a pragmatic HRD policy operating at all levels – country, company, and community currently.
73. Chinese market’s potential is much larger with the country, 150 million middle class people, as against that of 50 million Indian homesteeds fall in this category.
74. Anyway both countries can consumption-led growth for their prosperity as outcome of their vicious circle of rapid growth ison the track.,
75. If China and India combine and with mutual cooperation and coordination of their respective landmark and software efficiencies, the Asian region Indo-China can be assured the leadership in the global economy of the future. “Chinese manufacturing plus Indian services will create an ideal win-win situation,” says Wang Jinzhen, Asst. Chairman, China Council for promotion of International Trade (Gupta, 2006; p. 18).
76. By 2027, nearly 14% for Chinese population will be in the old-age group of over 65 years.
77. Chinese investment output ratio (annual change in investment % change in GDP) has been rising. This means the country needs to spend more money on investment to generate the same level of output.
78. There was been a problem of over-investment in some sectors in China, specially in the case of cars, steel and property sectors that will cause a setback and slow down of the growth problem.
79. Chinese banking/finance sector is fragile.
80. India’s major weakness lies in:
i. poor infrastructure
ii. Rigid labour laws
iii. High fiscal deficits
iv. Rural poverty
v. poor governance,
vi. Bureaucracy and red-tapism
vii. Widespread corruption
viii. On average, it takes 48 days in China to start a business. While, it takes 71 day in India as> compared only 6 days in Singapore (World Bank Report).
81. Global exports beleive that India will be the third largest economy of the world by 2020, next to China and the United States of Amercia.
82. People matters. An old Chinese proverb to quote.
83. “If you want one year of prosperity, grow grain. If you want 10 years of prosperity, grow trees. If your want 100 years of prosperity, grow global.”