"J B" <dinegame@[EMAIL PROTECTED]
> wrote in message
news:d1207cd7-e1ea-4cf9-8bb3-0a4334e65f5d@[EMAIL PROTECTED]
> China is improving in the manufacturing sector, but India is improving
> in the services sector, and the game of business is won on services,
> not manufacturing!
>
> http://www.foreignpolicy.com/story/cms.php?story_id=3348
>
> India Outsmarts China
> By Diana Farrell
>
> Page 1 of 4
>
> The economic race between China and India is changing the way the
> world does business. By 2050, it is estimated that these two Asian
> heavyweights will account for nearly half the world's gross domestic
> product, up from just 6 percent today. But whose model is better,
> China's low-cost factories or India's low-cost financiers? For all the
> benefits of China's swift rise, India's brain power will finally give
> it the tools to catch up.
>
> Reaping the Benefits
>
> China's explosive growth has delivered new prosperity to millions of
> its citizens, whereas India's advance has been more gradual. In China,
> massive public-works projects and a strong manufacturing sector have
> so far been a successful recipe for jobs, making its population nearly
> twice as rich as India's.
> SOURCE: MCKINSEY GLOBAL INSTITUTE AND GLOBAL INSIGHT
>
> Diana Farrell is director of the McKinsey Global Institute.
>
> Creature Comforts
> Page 2 of 4
>
> Creature Comforts
>
> China's wealth has brought the trappings of middle-class life to a new
> generation of urbanites. The average Chinese city dweller owns a
> television or two, does laundry with the help of a wa****ng machine,
> and stays connected with a mobile phone. India, lacking China's knack
> for producing cheap consumer goods, is still playing catch-up.
> SOURCE: MCKINSEY GLOBAL INSTITUTE
>
> At Your Service
> Page 3 of 4
>
> At Your Service
>
> Manufacturing is not a stable source of job growth even in China,
> which has already shed 15 million manufacturing jobs in the past
> decade. That's why India's economy, half of which is made up of
> service-sector companies, is growing smarter. Indian businesses plying
> advice in medicine, technology, and finance will continue to grow
> steadily over the next decade, while China's vaunted manufacturing and
> construction booms will wane.
> SOURCE: MCKINSEY GLOBAL INSTITUTE AND GLOBAL INSIGHT
>
>
> The Right Stuff
> Page 4 of 4
>
> The Right Stuff
>
> India is not only producing more young professionals, it is producing
> better qualified ones, too. According to a survey of local recruiters,
> only 10 percent of China's engineers have the skills necessary to work
> in a multinational cor****ation, compared to 25 percent of engineers in
> India. By 2008, India's total pool of qualified graduates will be more
> than twice as large as China's. If India's universities continue to
> churn out top-notch talent, its younger, cheaper, and larger
> professional workforce could help India edge out its neighbor to the
> east.
> SOURCE: MCKINSEY GLOBAL INSTITUTE
From my own personal experience, China has the lead in terms of GDP size,
but that is tem****ary. Their strength is low cost manufacturing labour.
India however, has a higher intellectual capital in science and
engineering.
In the long run, that will pay off, and they will pass China in GDP. The
negatives for both are governments and social systems, both of which are
centuries behind the developed countries. Neither will equal the developed
countries without changes in those areas, and both will hit the wall. For
India, a bad class structure system, and a large population that believes
in
big government and high taxes, are major hurtles.
|
