Thursday, November 5, 2009

CHINESE THREAT TO INDIAN BUSINESS

Is China a threat to Indian business; Well I think it is. Indian corporates and business community must get shocks and nightmares by the word China , but for the Indian customer it is a welcome proposition. Firstly China is a large country and has experience in handling various kinds of manufacturing, caters to a large population, works on large supply chains, seems to be technologically more advanced than India in various forms of transport and is a far better integrated set up than India. I have never visited China for that matter but that is what it seems and appears from afar. Added to these China has a land border with India and is conveniently perched vis-a-vis other countries. It is only a matter of time China extends its supplies into India resulty in jeopardy to many established Indian business houses. Secondly, China by virtue of these advantages can penetrate into Indian market pivoting itself on a platform of very low prices for many goods and services. How much China strategises on these fronts is not very well known but is relaxed, laid back and complacent but with the power and advantages to strike any moment. USA is the only antidote for china as seen from India but the US is in a war against terror and has an enemy at its front door which would drain resources and attention for long.If India were to become more friendly with china it would essentially alienate western forces and powers. There are huge and complicated equations emerging in the world polity and the market place incomprehensible for any one analyst. Ultimately the customer and the general customer would have a say as he will gravitate to directions where he gets value be it chinese , indian or any other country for that matter.

How can India combat this plausible chinese threat. Should it at all build defences? The answer might be yes unanimously to largely save indian business houses and activities.
Firstly India must be able to use the large scale manpower and resources avaliable across the country to the fullest extent. Secondly some basic form of education must be provided to all through some innovative delivery devices. the contribution made by one and all to the Ibdian economy must be recognised and appreciated. there must be a focus on price reduction at all fronts. Government must explore methods of support possible to various sectors. India must think more like a world citizen and partner with china in activities that would be of mutuual benefit. This threat has many encouraging sides which could be used by India to its fullest advantage.

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