27 Comments

Summary:

Lot of talk about India and China in the papers. US VCs and technology companies cannot stop raving about China. A little reality check! The divergent paths Bombay Stock Exchange and Shanghai Stock Exchange have taken. An old editor of mine used to say – pay […]

Lot of talk about India and China in the papers. US VCs and technology companies cannot stop raving about China. A little reality check! The divergent paths Bombay Stock Exchange and Shanghai Stock Exchange have taken. An old editor of mine used to say – pay attention to the ticker, the ticker can see the future. The breathless growth of China leaves Indian 4%-to-5% annual growth in dust, but short term money seems to think otherwise. These two economies have a direct bearing on the US economy – both in good and bad way.

Sramana Mitra: “It looks to me, therefore, that US, Europe and India are all headed for trade-deficit economies, while China reigns supreme as the trade-surplus nation.”

Silicon Valley is also tied into this nexus.

Previously on GigaOM

  1. Om, While you are talking about the stock market, here is the realities. China wants a lot more than it is willing to give. And India doesn’t know what to do.

    “If Delhi doesn’t think out of its box, C in Saarc may end up standing for China”
    http://www.indianexpress.com/full_story.php?content_id=68051

    Peking duck outscores Bombay- http://www.indianexpress.com/full_story.php?content_id=68085

    When’s india’s geopolitics strategy has no direction, why do you expect it to have direction in the economic area?

    In about 3-4 years china will acquire a trade surplus with india. china’s export basket is full and much more diversified than india’s who’s only talkable export other than raw materials is IT.
    To see what is going to happen in 3-4 years, you only need to look at china’s exports to the us.
    China wants a fta with india because it can exploit the fta to a much greater extent than india can. And we still haven’t even taken into consideration indian bureaucracy and corruption.

    Share
  2. I don’t think the enthusiasm around China has fully run its course, but more and more people are seeing India as a market, and not just a source for cheap brains. Also, in the battle between China and the US for economic hegemony in Asia, India could play the role of king-maker.

    Share
  3. the most interesting thing about this whole debate is that china is now on the lookout for new markets. this has serious implications for US brands and unfortunately the US industry is sleeping and twidling its thumbs. oh well

    Share
  4. well, not EVERYONE in US industry ;-) but i couldn’t agree more, the race for new geographic markets is the one to watch at the moment

    Share
  5. Dear Om mallik
    it dose seem after readin the article that you really know nothing and have just no idea of the change which is going on in the india.
    Just sitting in the US and saying india is not good has been the foolishness of many a indians and i understand that as the government is becoming more representative of the people and the ways are changing it is difficult to digest and comprehend the great ness of India.
    It is rising and it will be a great power but remember that india is the land of Buddha and Ram and Gandhi so its ideals are diffrent and so the results will be different.
    China was always a great military power and was a untified state and while india was a great knowldge powwer

    Share
  6. Injia will beat china due to quality products .Chinese products dont have durability and thats why India will be the superpower in the future

    Share
  7. Injia, your reason shows that you are as stupid as a cow. If chinese good is not good, then India is a superpower in the future? What ‘s reason is this? How is Indian good? You mean Indian good is durable and good quality? Go back to India and see what can India make? Everything in India is made in China now, and India even cannot make a Toilet. Chinese goods is not good now but at least it can make everything now and practice make perfect, its quality is better over the time as Japanese or Korean goods.

    Share
  8. Well, it is hard to hear but it is true. India cannot catch up China in any field. China is ambitious and is a pride united nation with pride history and beautiful languages, hand writing and deep cultures. India is not a proud nation, not a proud culture an its language is obsolete but English. Buddhism is from Nepal, not from India. Only Hindu is from India and majority people follows Hindu is Indian. I don’t think India is a great country as compare to China. It is an over populous country and its land area is less than 1/3 of china’s. India has a long, dark, not so proud history. China is an interesting country, anything from history, cultures, foods, religion,…polictics..To compare India to China is like to compare a stone and a diamond. That’s it.
    A Mexican boy.

    Share
  9. MR SHAKEEL .YOU ARE AN IDIOT .IN THE WORLD THE TWO COUNTRIES LEADING IN GDP GROWTH ARE INDIA AND CHINA 9% AND 10% RESPECTIVELY .AND INDIA IS EXPECETED TO BEAT CHINA IN THE COMING YEARS OWING TO YOUNGER POPULATION WHEREAS IN CHINA THE PEOPLE ARE OLDER OWING TO THE ONE CHILD POLICY PLEASE THINK BEFORE SPEAKING

    TO THE MEXICAN BOY

    PLEASE BE CAREFUL IN YOUR COUNTRY MANY COMPANIES ARE CLOSING UP SHOPS IN WEST INCLUDING MEXICO DUE TO COSTLY LABOUR AND HAS LOST ITS COMPETETIVENESS PLEASE GO TO GOOGLE.COM AND SEARCH”WORLD IS FLAT” AND YOU WOULD COME TO KNOW WHAT INDIA IS GOING TO BE IN THE FUTURE .WE SHOULD BE PROUD OF INDIA AS INDIAN COMPANIES ARE ACQUIRING ALL WETSERN COMPANIES FOR EXAMPLE TATAS ACQUISITION OF CORUS AND ETC…

    Share
  10. BLOODY SHAKEEL DO YOU HAVE ANY COMMON SENSE HOW YOU SAY”Everything in India is made in China now” BLOODY IDIOT GOODS ARE BEING EXPORTED IN LARGE QUANTITIES FROM INDIA TO CHINA YOU HAVE SAID”If chinese good is not good, then India is a superpower in the future? What ’s reason is this”THEN WHAT IF CHINESE GOODS ARENT GOOD THEN COUNTRIES LIKE PAKISTAN,AFGHANISTAN WILL BECOME SUPER POWER?IDIOT INDIA IS THE SECOND FASTEST GROWING ECONOMY .IF YOU DONT KNOW ANYTHING SHUT UP AND BE QUIET OK

    Share

Comments have been disabled for this post