News
 International
   Global Views
   Asia-Pacific
   America
   Europe
   Middle East & Africa
 National
 Embassy News
 Arts & Living
 Business
 Travel & Hotel
 Medical Tourism New
 Taekwondo
 Media
 Letters to Editor
 Photo Gallery
 Cartoons/Comics/Humor
 News Media Link
 TV Schedule Link
 News English
 Life
 Hospitals & Clinics
 Flea Market
 Moving & Packaging
 Religious Service
 Korean Classes
 Korean Weather
 Housing
 Real Estate
 Home Stay
 Room Mate
 Job
 English Teaching
 Translation/Writing
 Job Offered/Wanted
 Business
 Hotel Lounge
 Foreign Exchanges
 Korean Stock
 Business Center
 PR & Ads
 Entertainment
 Arts & Performances
 Restaurants & Bars
 Tour & Travel
 Shopping Guide
 Community
 Foreign Missions
 Community Groups
 PenPal/Friendship
 Volunteers
 Foreign Workers
 Useful Services
 ST Banner Exchange
  Asia-Pacific
India & China Rising
By Gautaman Bhaskaran
South Asia Editor
Indian Army tanks

Perhaps, the most significant event this century will be the rise of China and India. Experts believe that this will happen quite soon.

Given the differences in their conditions, China and India will obviously seek unrelated methods and routes to achieve economic superpower status.

The question that now exercises minds both within and outside these two countries is whether they will compete with each other or cooperate to meet their respective aims.

At the moment, China certainly leads. While Indian and Chinese economies were more or less of the same size in the 1950s and the 1960s, Beijing's impressive market reforms since the beginning of the 1970s pushed it ahead of New Delhi. China has had remarkable success with its exports, which in turn fetched for it large foreign direct investments.

In 2003, China got ten times more FDI ($54 billion), inspite of the fact that India has a more predictable legal system and uses English more extensively. What is more, India is a democracy, has been consistently one since it got independence from the British in 1947.

Courtesy CNN

Yet, China is the second largest economy in the world when it comes to purchasing power; India is number four. China's economy — $1.4 trillion — is three times the size of India's. How did China achieve this? It is widely believed that its success story is firmly based on FDI, government reforms, increases in real wages and poverty reduction. Real wages doubled during the past 25 years, the GDP grew at nine percent, the private sector doubled employment opportunities during the past decade and 300 million people came out of poverty.

Although there are fears as well that Beijing is good at botching figures to impress investors and seek political mileage (clinching the 2008 Olympics is a case in point), it will be farfetched to deny, despite China's known and hardly hidden pockets of depressing poverty and want, that the nation has made formidable strides.

In contrast, India woke up to the very concept of market reforms as late as 1990-91. The men behind it were the then Prime Minister, Narasimha Rao, and Ministers Manmohan Singh and Chidambaram. Today Singh is India's Prime Minister, and Chidambaram is his Finance Minister, and the possibilities seem endless.

To begin with, India has a definite advantage over China with its massive default in the banking system. India scores well on macro-economic conditions: inflation is not very high. China is notoriously known for its price fluctuations, which have pushed inflation to an uncomfortable height.

India is also toying actively with labor market reforms that will let companies with less than 1000 employees to hire and fire without seeking government permission. According to some analysts this may well be the most important step after the "licence-raj" was abolished.

A Shanghai street in China

However, one cannot forget here India's glaring shortcomings: the nation cannot leapfrog from being an agrarian economy to a service economy by ignoring the manufacturing sector. India has a fairly decent services side, but is not backed by manufacturing finesse. This is one core area that India ought to concentrate on and improve significantly to be able to compete with China in the world market, now being flooded with Chinese goods.

On my recent visit to Australia, just about anything I touched in the shopping malls had the made in China tags, and what is more, their excellent quality matched their competitive prices.

Even at home in India, there is a growing Chinese presence in the market, which is unfortunately being swamped by rather inferior Chinese goods. This is China's survival tactics: it makes one set of products for the developed market and another totally different set of items for the developing world, where the purchasing power is inadequate to buy superior quality.

It is this gap that India can plug with its still relatively cheap but good labor, whose intelligence and artistic capability can be better than China's.

Nonetheless, analysts feel that if India and China were to cooperate, they may well be able to capture the global market easily. India must learn to imitate China's ability to leverage its competitive strengths. As India climbs the growth ladder, the nation needed to develop newer skills and competencies that will provide sustainability to its economic advantage.



Related Articles
    Tiger Man Mike Pandey
    Egypt's First Edition of El Gouna Film ...
    El Gouna Film Festival Opens with Sheikh ...
    New Egypt's El Gouna Film Festival to Add ...
    India Stands Shamed after Racial Attacks near ...
    The Dashing Pedro Almodovar to Chair Cannes ...
    Korean Cinema Comes to Chennai in India
    The Horror of Custodial Death
    Modi Is the Man We Need in India
    Mumbai’s Child King
    The Cocktail at Cannes
    Cannes Film Fest Begins on a Hollywood Note
    Mumbai Terrorized Again
    Venice Lines Up Impressive Jury
    Cannes Film Fest Begins on a Delightful Note
    No Indian Movie at the Festival
    Meaningless Film Censorship
    This Bloody Life!
    Mumbai and Pusan Film Fest Establish Ties
    On Road, in Rage
    India Picks Wrong Films for Oscars
    Robert De Niro to Head Cannes Film Fest Jury
    Someone Killed Jessica, But of Course!
    Middle Eastern Cinema Hits Hard
    Dubai Film Fest Opener
    Dubai Film Fest to Unravel Diverse Selection
    Indian Police Cut Corners to Tackle Crime
    Goa Festival Not God's Own
    "West Is West" Sets IFFI Sailing
    Fine Cinema at the Coming Dubai Film Festival
    "The King's Speech" to Set the Fest Rolling
    Abu Dhabi Film Festival a Fantastic Mix of ...
    "Adoor Gopalakrishnan: A Life in Cinema" ...
    The Venetian Storm
    Frieda's Venice
    Jafar Panahi's Music Soothes Souls
    "Black Swan" Opens Venice Festival
    Festival to Bounce with Youthful Energy
    Shame and Scandal Plague Commonwealth Games
    Child Needs Compassion, Not Cane
    A Beast Called Beauty
    Adoor Gopalakrishnan: A Life in Cinema
    Bhopal Gas Tragedy: A Crime Called Bhopal
    Honour Killings Are India's Shame
    Cannes Film Festival And Poetry
    Cannes More Art Than Glamour This Time
    An Indian Pilgrimage to Cannes
    Maoist Rebellion in India
    Asians to Carry the Torch at Cannes
    Cannes Film Festival and Probables
    "Robin Hood" to Open Cannes Film Festival
    Persecution of Artists
    The Only Two Real Races This Year
    Curry Bashing in Australia
    US Director Tim Burton to Lead Cannes Jury
    India's Car Boom Creates Its Own Chaos
    Making Idiots Out of Men
    Indian Girls Find Paris Hilton’s Shoes Too Hot
    Mexican Film Wins Top Prize at Marrakech
    Ben Kingsley Hopes to Be an Envoy for Cinema
    Movie Director Hopes Obama Would Solve the ...
    Nandita Das on Marrakech Jury
    A Decaying Film Festival
    Marrakech Festival a Boon for Local Cinema
    Panorama Selection Questionable
    IFFI to Open on a Note of Visual Lyricism
    South Korea to Be Focus at the Film Fest
    Dalai Lama’s Tawang Visit Vexes Beijing
    Why Mumbai Film Fest Scores over Goa
    Mumbai’s Young Movie Critics Ready to Tear ...
    India Is Still Hungry for Food
    Honor Killing through Lens at Mumbai Festival
    11th Mumbai Film Festival to Open with Matt ...
    Film Festival to Showcase Some Gems
    Can India Host 2010 Commonwealth Games?
    A New Irritant in India-China Ties
    The Venetian Sorrow
    The Tiger War
    Israeli War Film Wins Venice’s Top Golden Lion
    Politicians Livid over Festival Movie
    "Bad Lieutenant" Creates Bad Blood between Two ...
    Clooney and Damon Star Attractions at Venice
    Muslim Bashing Must End
    Mumbai Film Festival Prizes to Be among the ...
    An Indian Juror in De Sica Land
    India's Gays Can Now Love without Fear
    Moore's "Capitalism," 70 Other Films to ...
    An Indian Summer at the Lagoon City
    Festival May Be Strong on European Fare
    A Tamil Film with a Difference
    Harry Potter and the Half-Blood Prince: But ...
    India Is Racist Too
    Hollywood Bungles in Bollywood
    The Tragic Tale of the Indian Tiger
    Cannes Jury Honors Chilling Tales
    Lars Von Trier’s Sex and Horror
    Gems and the Cannes Film Festival
    Market and the Cannes Film Festival
    Keats Poetry, Campion’s Reading
    Lou Ye’s Controversial Disaster
    Clash of Titans on the Croisette
    Sexy Sirens and Political Propagandists
    Is Sharmila Tagore the Right Choice for Cannes ...
    The Stars in Cannes’ Dark Skies
    Cannes Courts Controversy
    Indian Elections: A Circus of Villains
    Festival Unveils Lineup of Masters
    Beyond Bollywood’s Melodramatic Mishmash
    India's Infrastructure at Breaking Point
    Guessing the Festival Goodies
    Kate Winslet the New Face of Brilliance
    Tarantino’s ‘Basterds’ to Spit Fire at Fest
    Animated Film, Up, to Open Festival
    Smoking Screen
    Oscar-Rich Penelope Set to Master English
    Cannes Honours Clint Eastwood
    Renowned French Star to Chair Cannes Jury
    Fable of Mr Benjamin Button: Riveting Cinema
    The Mangalore Molest
    Aamir Khan Film Is a Bad Copy
    It May Well Be the End of Agony in Sri Lanka
    Woody Allen’s "Vicky Cristina Barcelona"
    International Film Festival of India
    Mumbai Terror
    Marrakech Int'l Film Festival Has Grown
    Marrakech Int'l Film Festival
    Marrakech International Film Festival
    Shambled Secularism
    Benegal’s Sajjanpur
    Birdwatchers
    Venice Festival Blues
    Venice under the Hollywood Spell ?
    A Riveting Movie on Islam's Crisis
    Venice Festival a Haven for World Premieres
    Pakistani Films Come to India, at Last!
    Tamil Super Hero Rises Again
    The Comic Fantasy
    The Smoking Screen!
    Bollywood and Beyond at Stuttgart
    New Film May Spell Hope for Bollywood
    Indian Cinema Feeds Deceit
    An Indian Film on an American Power Plant
    India Not At Cannes
    Cannes Line-Up
    Writer Taslima Nasreen Forced Out of India
    India Inspires World Fashion
    Mills & Boon
    "Jodhaa Akbar" Creates Controversy in India
    Sania Mirza Subject to Ridicule in Native India
    Sarkozy and Bruni Love Causes Moral Outrage
    India and the Oscars
    Marrakech International Film Festival Reviewed
    Paranoid Park
    Cannes 2007: Killings
    The Spy Case
    The Good and the Not So Good
    Bollywood Superman
    First Kashmiri Film in 20 Years
    Chinese Influence Seems Unstoppable
    Cannes Film Festival 2006: Minimalism, Too
    Cannes Fest Prizes
    Cannes Film Festival 2006: Great Delights
    The Da Vinci Code
    Missing Tigers
    The Despair of Tibetans
    Trilateral Stratagem To Slow China's Growth
    Sri Lanka Crisis
    Hollywood Movies Doing Well In India
    Peace Pipe
    Mangal Pandey: The Rising
    Honda Clash
    Bush-Manmohan Singh Pact
    Satyajit Ray, Still India's Most Noted Movie ...
    Ban on Cigarettes in India
    "Match Point" Excoriated by Britons
    Crisis In India’s Hindu Nationalist Party
    Manmohan Singh’s One Year
    58th Cannes International Film Festival Begins
    Indo-Pakistan Cricket Diplomacy
    U.S. Visa Refusal
    The 7th Deauville Asian Film Festival Closes
    Seedy Film Journalism
    Indian Tigers Butchered in Broad Daylight
    No Oscar for Scorsese, Yet Again
    Nepal in Turmoil As King Sacks PM Deuba
    History Repeats in Struggle for Free Press
    India Could Have Prevented Tsunami Deaths
    Argue over Freedom on Internet
    "City of Gold" Dubai Stands like Oasis in ...
    Towards a Solution to the Kashmir Problem
    Bush Victory and India
    Indian Robinhood
    After 9/11, World Links Muslim with Violence
    India's Great Heritage Taj Mahal in Danger
    "Kashmir": A Never Ending Thorny Issue
    The Village -- A Silly Joke
    Jakarta Bombing Aimed at Aussie ...
    Millions of Indians Go to Bed Hungry
    Sri Lanka's Ethnic War Knows No End
    Over 600 Tibetan Monks, Nuns Should Be Freed
    India's Schoolgirl Killer Hanged in Controversy
    3 Kidnapped Indians Endure Agonizing Torture
    Musharraf's Sets Deadline on Kashmir
    Usefulness of Nepalese Monarchy in Question
    Temple of Learning Turns into Grave of Death
    AIDS Keeps Threatening the Poor in Asia, Africa
    Fearful of Dowry Parents Kill Newborn Girls
    Hot Discussion on Death Penalty in India
    India's Flag of Democracy Kept Unfurled
    Politics Dominates Cannes Int'l Film Festival
    Intolerance Grows before India General Election
    Fears of Strife Continue in Sri Lanka
    Torture, Rape Occur in Indian Classroom
    World Leaders Must Take Stand against Nukes
    India's Cities Prosper as Country Folk Starve
    India, Pakistan Form Friendly Ties
    Cell Phones Bring Joy, Sorrow World Over

Other Articles by Gautaman Bhaskaran
Tiger Man Mike Pandey
Egypt's First Edition of El Gouna Film ...
El Gouna Film Festival Opens with Sheikh ...
New Egypt's El Gouna Film Festival to Add ...
India Stands Shamed after Racial Attacks ...


Gautaman Bhaskaran is a veteran film critic and writer who has covered Cannes and other major international festivals, like Venice, Berlin, Montreal, Melbourne, and Fukuoka over the past two decades. He has been to Cannes alone for 15 years. He has worked in two of India’s leading English newspapers, The Hindu and The Statesman, and is now completing an authorized biography of India’s auteur-director, Adoor Gopalakrishnan. Penguin International will publish the book, whose research was funded by Ford Foundation.

 

back

 

 

 

The Seoul Times Shinheungro 25-gil 2-6 Yongsan-gu, Seoul, Korea 04337 (ZC)
Office: 02-555-6188 Email:seoultimes@gmail.com
Copyrights 2000 The Seoul Times Company  ST Banner Exchange