Crouching Tiger, Hidden Dragon
China is a large, no huge economy that is growing rapidly. One may argue that its growth is matched by the growth of the Indian economy. But there are some differences. Here are some of observations: (these are not fact checked)
- The current growth in the Indian economy is largely due to relaxation of laws and opening the economy to FDI (Foreign Direct Investments).
- Another source of growth is export of services and garments.
- The two sources of growth along with more relaxed laws, have spurred an internal growth catering to a poluation of a billion, but more realistically about 300 million, representing the people with real purchasing power.
The big difference that I see vis-a-vis China is that we still do not make many products. We are still an exporter of primary goods, i.e., grain, minerals, fruit, cotton, and now human services. Compare that to China. They make absolutely everything. I cannot walk into a store and find a product not made in China. All over Europe and the US, if there is one constancy, its that everything is made in China.
How did the Chinese manage that? How come we didnt? Clearly we have equally qualifed people. But lets set that discussion aside for a bit.
What I am wondering is that with the opening of trade links between India and China, are we exposing ourselves to an economy that will crush our manufacturing sector? I do not believe in protectionism, but am curious as to the impact of a full open trade stituation with China. I doubt we are getting there anytime soon.
Just some thoughts. It will be interesting to see how this plays out.
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-> India’s fast-growing economy should expand by 8.3 per cent this year instead of 7.3 per cent as previously projected, the International Monetary Fund (IMF) said last month.
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Recently China and India have opened a historic trade route that had been closed for nearly half a century.
Recently China and India have opened a historic route that had been closed for nearly half a century. The Himalayn pass of Nathu La, 4,000m above the sea level, was once part of the ancient Silk Road and saw clashes between the sides in the 1960s. At the moment most agree that there are more immediate political benefits rather than economic.By allowing trade through Nathu La, China has accepted Sikkim as part of India that it refused to do earlier. Sikkim is a former Buddhist kingdom that merged with India back in 1975, a move that was opposed by China which lay claim to the state.
I really hope that in the near future I will get to hear and see more cooperations between the two nations, forming a stronger bond in all respects and becoming truly leaders in the political world and economic super-powers.