India and China should give each other space and avoid competition

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Organised by - ARTHA VAAD 2010 -International Management Institute (IMI) Delhi’s annual Economics Summit with the focal point comparative analysis of the two Asian giants India & China in various sectors

India and China should give each other space and avoid competition” was the consensus at Annual Economics Summit “Artha Vaad’10” organized by New Delhi-based International Management Institute (IMI). The focal point of the summit was the comparative analysis of the two Asian giants India & China in various sectors as well as BRIC (Brazil, Russia, India & China) as a rival to the Indo-China- Asia’s collaboration.

In the backdrop of both India and China on a resource intensive growth course, the reminiscent of the West and East Asia and 45% of the new global demand for oil and gas expected from these two countries, the demand for resource can push the costs. More so, when both the countries are sourcing their raw material requirements from Latin America, Africa, Middle East & South East Asia. Organisations like Sinopec, ONGC among others, from these two countries, have now forayed into the preserve of the MNCs of the First World Countries so as to meet the requirement of the economic growth of their respective countires..

Speaking at the summit Mr. Rajeev Anantaram, Senior Fellow, ICRIER, touched upon the growth, reforms, FDI and infrastructure in China. According to him, the emphasis on development of social capital, in particular secondary school education, is one of most important factors which has led to the unsurpassable growth of China as a low cost manufacturing hub. “The serious excess capacity and inventory buildup led to dumping and exchange rate management policies of China..Further, due to lopsided economic development, the dragon is facing a crucial economic disparity ranging from an urban rural divide to intra-city differences” he said. “The competition from low wage countries like Malaysia, Indonesia, Philippines and Thailand is also a cause for concern for both India and China” he added.

According to Mr. Puru Agrawal, CEO of Hreeng Diamonds and the Chief Gemologist at International Gem Certification Laboratory while giving his insights into the Chinese and Indian Diamond Industries said “China lags behind India in this front because of its governed markets, unavailability of cheap labour, less consumption and more importantly lack of expertise vis a vis the Indian market,” he said.

Elaborating the feasibility of a Beijing consensus, Professor Rajat Kathuria raised the issue “if authoritarianism is a better system of governance than the others”.
During the course of the Summit two other importants points were also raised, the existence and the desirability of an Asian Currency Unit especially in light of the initiative by the Asian Development Bank were also deliberated upon andthe big brother like behavior of China with its political and hegemonic influence in the South East Asian Region.

While concluding the Summit, Professor Paul Vandenberg of IMI Delhi said “India’s emerging entrepreneurial class is a shot in the arm for the nation whereas China’s state driven economy is the backbone of the country and both the countries should try to emulate the strengths of each other”.

About International Management Institute (IMI)
International Management Institute (IMI) was established in 1981, as an autonomous non-profit educational society under the Societies Registration Act 1860, to meet the widely felt need for internationally oriented management education/ training for managers at all levels in industry, government and public systems. The academic programs of the institute continue to enjoy full support of the corporate sector as well as the Government of India since its inception. Today, IMI holds a place of distinction among the premier schools of management for being the first corporate sponsored business school with strong international orientation in India.

IMI follows international standard curricula in its programs, which has been enriched by its academic collaborations with a number of leading B-schools in Asia, Europe and North America and prepares participants to successfully manage and lead in an increasingly global business environment. IMI's educational programs have been recognized by All India Council for Technical Education (AICTE) and Ministry of Human Resource Development, Govt. of India. The corporate world in India, public, private, multinational companies, international consulting firms and other organizations have employed its alumni who are rightly called, the Achievers. For more information about the IMI please visit www.imi.edu