These ties have already been expanding rapidly since 2000. During 2000-last year, bilateral trade between China and India grew at an annual rate of almost 30 per cent, a much faster pace than the 19-20 per cent growth rate in either China’s or India’s exports to the world or the 9 per cent annual growth rate in world trade. Bilateral trade between China and India currently adds up to about US$65 billion (HK$503.9 billion). Importantly too, the economic relationship between these two Asian giants is on the verge of a transformation – from one driven largely by trade to becoming driven heavily also by investments.
As India’s infrastructure weaknesses begin to get addressed, India will become much stronger in manufacturing and should start to replace China as the factory of the world. At the same time, as the Chinese economy moves up from manufacturing to services, it should start to give a tougher competition to the Indian service sector companies. Notwithstanding the above sources of friction, I believe that India and China’s partnership in the creation of the NDB significantly reduces the risk of border tensions flaring into a hot war. Thus, we can expect pubic sentiments on both sides to become significantly more favourable towards collaboration.
Read the entire interview here..
Dr. Anil K. Gupta
Anil K. Gupta is widely recognized as one of the world’s leading experts on strategy and globalization. He is a regular columnist for BusinessWeek and co-author of “Getting China and India Right: Strategies for Leveraging the World’s Fastest-Growing Economies for Global Advantage.” Dr. Gupta has advised a wide range of multinational enterprises, including IBM, ABB, Black & Decker, Lockheed Martin, Marriott, Monsanto and National Semiconductor.
Dr. Gupta outlines how companies can leverage the market and the resource opportunities presented by the China and India phenomenon to achieve global dominance within their particular industries. He also talks about the key questions that business leaders must address in order to develop winning strategies to go global and to transform global presence into global advantage. He offers conceptual frameworks that business leaders can use to answer these questions.