Indian stock markets are well regulated and considerably better run and more transparent than those in China. Entrepreneurship reigns in India, and their system recognizes and rewards the brightest and supports the whole idea of taking business risk. This in turn facilitates growth of business development. As a result of which foreign investors feel more comfortable while investing in Indian Industry. Its no secret that both these economies are on a upswing of development. The industries are bound to grow and diversify into every possible verticals. It is evident that this growth will take very different directions in these two emerging economy due to differences in culture, business practices and where each stands in terms of factors ranging from public infrastructure to government and business practices. Furthermore, the IPR related problems in trades and products has become a serious problem in China. On the other hand India's regulatory systems are better suited to prevent IPR theft and this gives them a distinct advantage in creation of business collaboration.