Monday, October 19, 2009

BEIJING - JANUARY 14: Prime Minister Manmohan ...Image by Getty Images via Daylife
India enjoys democratic system with a Federal Republic and Parliamentary system of government. Thus, their system and institutions are both more familiar and more predictable in terms of operation than those of China which are still highly centralized and control oriented. English language is another important differential. Another important difference of India China Infrastructure is education system. India's huge bunch of technology and management - English speaking graduates is a clear advantage over Chinese manpower. This gives India a distinct advantage in the international marketplace, particularly in the rapidly emerging IT and service industries. It also augers well in the meetings business, where clear and coherent communication with business collaborators is a precondition for successful joint venture and negotiation. Further, business outsourcing will continue to grow in India, and this will also support development of other industries. Prominent differences of India China Infrastructure exists in the respective business environments of these two countries. Selling products to the Chinese market, remains a real challenge for most foreign companies. To be successful in Chinese market a local collaborator is necessary, and this makes entry more complex. India's developing industries are far more profitable than their Chinese counterparts.

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. 


Blog Archive