Where the will is there the way is.When narrowing down trade deficit is of paramount importance Govt must take necessary remedial action on a top priority basis.
By
s.baalu , Consultant, XYZ LTD
| 12 21 2010 13:40:52 +0000
No other go, India has to. India is emerging as an important source of specialized talent for many Chinese companies as well as the Chinese units of major multinationals. India needs a proactive economic strategy towards China. Nothing has changed India's thinking more in the last couple of decades than the emergence of China and India on the global economic landscape.When the rest of the world went into a recession after the financial meltdown led by the collapse of Lehman Brothers in September 2008, it is these two countries that have brought the world economy back on its feet. China and India are two rising economic giants. Their rise is changing the picture of the global economy drastically. China and India are in different weight categories. Definitely, both economies are rising fast, but let us face the realty. While China is a giant, a heavyweight, India is still just a large economy, somewhere in the semi-heavyweight category. Now India needs to rethink/restructure its economic policies towards China since the opportunities are comming to sign the Mou with China to the tune of 16 billion dollars. Hence a well planned strategic move may help India to narrow down the trade gap with China. Let us hope for the best. Thanks for the referral Ms.Disha Roy.
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NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd
| 12 18 2010 18:35:31 +0000
Chinese upper hand in manufacturing sector, using the so-called “sweat shops” will definitely wither as time passes. We have already started to hear the news that the regimentalised Chinese laborers started to bargain and strike. The advantage of cheap labor is not sustainable especially considering Chinese demography. Development brings new dynamics in societies, the need-hierarchy of Chinese people will usher new political and social upheavals. China won’t be the same all times to come. During the last few decades China has built a strong, big economy, but India has built a stable and sustainable social model based on democratic principles, which will bring rich dividends to India in long run. India’s advantage in the successive decades is its youthfulness, where China is limping. India definitely has the capacity and potential to outshine China in many areas including commerce in the long run. But as India and China have strong economic relationships each other, which guarantees that both countries have a vested interest in keeping a working relationship instead of the adverse factors in between.
By
Yatheendran.P.V , Project Management, KEO International
| 12 16 2010 09:59:47 +0000
yes, with the increasing trade space shared between the two countries, its a possibility. However it will take time to catch up specially in infrastructure and manufacturing front.
By
Sambit , Project Manager, Azurepower India
| 12 16 2010 08:34:33 +0000
yes its very difficult to assume at this stage since the history and background dont support the reduction of trade gap but seeing the present scenario of the world the Bureaucrats of both the countries will definitely try to increase the business.
By
Neerav Galathia, Sales Engineer, Aerzen Machines (India) Pvt. Ltd.
| 12 16 2010 08:17:17 +0000
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I dont think so because apart from the same burgeoning population we share, china is much ahead of us in terms of GDP, Military strength, infrastructure, politiccal savviness etc. Plus lets not forget their interest in swallowing our land and the cosiness that they enjoy with pakistan. They are a lurking danger to us in everything be it economic or political.
By
Jaygopal Raghavan, Marketing Manager, Landmark Group
| 01 04 2011 19:24:32 +0000
Keeping our relation in mind I think trade deficit will be an unending process with China in near future. Actually who ever comes to power will not change the stand otherwise the following will fall hence the relations will remain as it is with China. Thanks Natteraja for referral.
By
Rathin Deb, Freelance Retail Consultant
| 12 20 2010 11:52:12 +0000
There are three issues. 1. Political issues: Such as boarder with China. 2. Democracy vs Communism 3. Weakness of Indian political leadership. 4. Goods Vs Services The first issue is yet to be resolved to the satisfaction of both the countries and India has its own policy regarding Tibet, not fully to the satisfaction of China. 2. The case of democracy and communism; I think China is more capitalistic than any other country in the world. Having said that it uses the best of both the worlds use the effective redistribution mechanism of communism and resource allocative capability of capitalism. The third point is the weakness of Indian political leaders; i think this forum is in sufficient to discuss this aspect. The most important point is what is the goods and services we get from China? It is predominantly manufactured goods which are globally competitive. The prices are so low, it makes economic sense to buy those products. However, it will be at the cost of local capabilities which are likely to disappear over the years. Take example of locks. Before advent of locks from China we had a big industry at Aligarh. Now it totally disappeared. The reason never the Aligarh manufacturers thought of making products of international standards or compete in prices or adapt product designs.They were resting on their laurels.This is only an example. We can find hundreds of examples of such entrepreneurial issues.On the other hand Indian has competitive advantage in the area of services. However, the quantum of services that China can obtain in lieu of its manufactured products is less. Due to this asymmetric nature of trade the trade gap cannot be narrowed, if not balanced.
By
Krishnamurthy Prabhakar, Professor, Velammal Engineering College
| 12 20 2010 01:54:15 +0000
No, India will never feel comfortable in reducing the Trade Gap with China. Though the trading with China will remain economical with China due to geographical distance of trade but the political status in China and that of India will never be favorable for Indian politicians due to democracy and communism type of differences. India is a sub-tropical/ tropical country, whereas China is a sub-polar country. The behavioral professional attitude of Chinese differs from Indians and China due to their upper hand in technology and Indians racing with them, will always try to let Indians down to advance in competition. Thereby, Chinese will always try to supply low cost products in Indian market and this is one of the reason that inspite of big consumer market Chinese products will never be appreciated in long run. May be China is in a position to market new products but now Indians have realized that with the initial pricing of such products Chinese recover the establishment cost of manufacturing the product and later try to reduce the price to over power the Indian market. Secondly, the Indian geographical culture never allows them be arrogant in trade which Chinese are. The tendency of Indians is to learn more and more and that is why they try to keep mum and keep acquiring the knowledge and technology, which Chinese do not. Due to this attitude Indians always over power the Chinese products while either pirating or developing their own unique designs killing the Chinese products. There are number of reasons which will never allow the trade gap to be reduced and in my views we should not insist upon doing the same. The 21st century is for Indians to grow, by Indians to flourish and of Indians to rule the world.
By
Akhilesh S Joshi, India Coordinator
| 12 19 2010 02:53:06 +0000
China is improving by leaps and bounds and its economy is huge. It has good resources (human and natural). Hence, it may be difficult for India to narrow the trade gap with China unless a shortage of a product/service leads to improved trade from India and this may lead to a narrowing trade gap. However, for the present, it is unlikely that the trade gap can be reduced easily..... Thanks for the referral, Disha.....
By
Badri N Srinivasan, Head - Quality, Valtech India Systems Pvt. Ltd.
| 12 18 2010 17:02:50 +0000
No way. Our lenient policies and corrupt political system will never aid in doing so. The gap is definitely going to widen over a period. And for that purpose only Chinese Premier is here. China need not to worry on this question.
By
Nilesh Jain, Project Manager, A Leading Media/Telecom Co.
| 12 17 2010 07:09:26 +0000
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