CHINA IN 1980s
India in 1980s
CHINA IN 2010
INDIA IN 2010
Trade relations between two Asian
giants
INDIA & CHINAPresented to-
Dr.Ranjan UpadhyaySenior FacultyFMS-WISDOM
Presented By-
Priya Maloo(7257)Swati Pahwa(7328)Unnati Gupta(7337)
Topics to be covered-
1 Basic information of 2 countries2 Comparison between India and China3 Import and Export Volume4 Bilateral trade flows5 Import and export items6 Trade disputes7 Trade settlement8 Why India lag behind China?9 India & China-friend or foes?10 Roadblocks in trade relations11 Stumbling blocks in trade relations12 Strategic dimensions13 Analyzing the backdrop14 What India and China can do together?15 Future prospects and suggestive measures16 Recent news17 Conclusion
Analogy representing Indo-China relationship
FACTS INDIA CHINAGDP $ 1.3213 trillion $ 4909.28 billion
GDP growth 8.9% 9.6%
Inflation 8.62% 4%
Labor force 467 million 813.5 million
FDI $ 12.40 billion $ 9.7 billion
World prosperity index 88th position 58th position
Mobile users 842 million 687.71 million
Internet users 123.16 million 81 million
Foreign exchange reserves
$ 2.41 billion $ 2.65 trillion
AGRICULTURE
INDIA CHINA
Traditional methods Modern Techniques
Information technology & BPO
•India enjoys an upper hand over China in IT & BPO industry•Earnings from BPO In India stood US $ 49.7 billion (2010) and China earnings stood US $ 35.76 billion.
LiberalizationIndiaChina
China was an early Bird in initiating liberalization in 1980 whereas India’s liberalization took place in 1991.
Infrastructure
China has well developed infrastructure facilities in comparison to India in terms of highways, water management, health care facilities, civic amenities , communication, manpower and so on.
INDIA CHINA
Shanghai Stock Exchange
Bombay Stock Exchange
Capital market
• Shanghai stock exchange (SSE) larger than BSE in terms of capitalisation with US $1.7 trillion & 849 listed Co’s in comparison to BSE with US $ 1 trillion & 4833 listed companies.• SSE is behind BSE in terms of transparency,stability and predictibilty
Company Management capabilities
India enjoys an upper hand in terms of company management capabilities because its not the Chinese exports that drove their economy rather it’s the export product of its outsiders who set up their industries in China.
INDIA CHINA
Mergers & Acquisitions
•Indian companies are rapid in doing Mergers & Acquisitions in comparison to Chinese companies.•Recent examples include-Tata steel acquisition of Corus for $13.6 billion.•Ranbaxy acquisition of Romania’s Terapia.
Imports volume of India and China
Exports volume of India and China
Trade volumes between India and China in Billions
Import items from China to India
• Electrical Machinery
• Machinery
• Plastic
• Organic Chemicals and Inorganic • Chemicals
• Iron And Steel, Iron/Steel Products
• Rare Earth Metals
• Fertilizers
• Manmade Filament, Fabric
• Impregnated Text Fabrics
• Silk; Silk Yarn, Fabric
• Vehicles
• Mineral Fuel, Oil Etc
• Aluminum
Export items from India to China.• Machinery
• Plastic
• Ores, Slag, Ash
• Iron And Steel
• Metals
• Organic Chemicals Salt
• Inorganic Chemicals
• Cotton and Yarn, Fabric
• Copper and Articles Thereof
• Hides And Skins
• Artificial Flowers, Feathers
• Tanning, Dye, Paint, Putty
• Precious Stones
• Fish And Seafood
Trade Disputes•Fraudulent trade practices•Tall claims broken by Chinese companies•Building a relationship of distrust•Problems faced by Embassies•.
Trade SettlementsAdvisory committee's suggestions:
• Company should desist making an advance payment• Company should operate through bank guarantee• Company must not release Letter of credit without inspecting
INDIA CHINA
Why India lag behind China ??
INFRASTRUCTURE DIFFERENCE
DIFFERENCE IN TRANSPORT MODES
HARE AND TORTOISE
COULD INDIA CATCH CHINA BY 2030
NOW
BY 2030
Friends OR
FOES?
See-saw like relationships
China seen as a threat to India
Road-Blocks in relations
Stumbling Blocks in relations
No territorial
ambition
China’s image as a benefactor to Pakistan
Soviet Union invasion in Afghanistan
India’s possession on Tibetan Autonomy
ROAD-BLOCKS
STUMBLING-BLOCKSMore commonalities than difference a)Agreement upon bilateral trade
Exports and imports
Indian companies in China
a)Cadilla d)Infosys
b)Workherdt e)Tata imports
c)Torrent f)Lupin lab.
SINO-INDIAN TIES: The strategic dimension
Improved trade at the grass root level
Joining ASEAN’s collaborate
India joining China’s Shanghai co-operation
China joining SAARC
Establishment of common market
Future relations
What the two giants can do together?
Improve bilateral trade
Steel,constructions,minerals,auto components, software,travel and tourism,etc
Co-operation including China’s stance on Sikkim and India’s on Tibet
Reshaping Global economic and security system
Opening up Agricultural markets
Oil exploration and purchase agreement
Tariff rationalization
Educational exchanges
Cultural exchanges and public diplomacy
ANALYSIS OF THE BACKDROP
Need to improve economic and political relations
Moving forward to the global arena
FUTURE PROSPECTS AND SUGGESTIVE MEASURES
1.Sub regional co-operation
Health care
Energy
Education
Environment 2.Foreign Direct Investment
India’s focus on its strengths
3.Trade Scenario
China as the second largest oil consumer in the world
Natural gas as an important source of trade
Joint ventures of steel production
Renowned Indian companies entering into the Chinese market
Investment in intellectual capital
China’s products exhibition to be held in Mumbai
Oversees energy deals: India catching up on China