Tuesday, August 24, 2010

A Himalayan Rivalry: India and China

I am extremely happy to see the cover story of this week's 'The Economist Magazine'. First time ever such a renowned magazine group have devoted a whole coverage on India related issue. Normally they seems more keen on depicting the stories related to developed world. Is this an indication of India's emergence on Global world stage? It is so enthralling that i cann't express my feelings in words. Let's Analyse the core issue of this coverage. I like to divide it into parts to understand it better. The views presented below is this my opinion your thoughts may vary.


Why The Economist has taken this story. What would they have intended by publishing this story?
I guess they have taken this story to accentuate the growing competition between these two rising powers. Recently the Dalai Lama is going to meet the Indian PM Manmohan Singh. Chinese officials feels disgruntled about India's readiness to meet Spiritual leader Dalai Lama against their wish. So the publisher have got a good timing to accentuate the rivalry between these two Asian giants.
From the west's prospectives India's good relation with China will dilute their Superpower status. As these two are mammoth countries with world's 40% of total population. So its always commendable for them, not to have good relations between with these two nations.

India and China. Is their really growing rivalry between these two nations?
I think their is not a direct competition between these two nations. India's core competencies is in services sector while china leads in manufacturing side. So their is not as such intense competition as in business front (though both countries are competing for oil and gas reserves all over the world for meeting their growing energy demands). Both nation's economy are growing in a good pace. It is forcasted that if these two nations continues to grow with this pace they would overtake US economy in decades to come. Both South East Asian countries have potential to realize their goal. In this context the question arises is who will dominate in the region? China fears about India catching up their growing clout in the region. hence want to derail India from the growth track.
So, the actual rivalry between these two nations is not as such in business front as would have in other issues, like clash of growing clout between these two in dominating the South Asian region. Both have vision to move ahead of eachother. Though China is far ahead of India right now in every front, but India have huge demographic dividend to support the growth in future. While in other hand Economist argue that possibly China would grow older before becoming richer in the world. Here India has clear benefit in terms of smooth functioning democracy and manpower to fuelthe future growth. India is fast catching up them and Economist believes that by 2015 India's GDP growth rate would exceed Chinese GDP growth rate . This worries China most.
Their is a border disputes between these two countries, both claims on eachother's territory. Their is massive build up taking place in Chinese side across the border. India have also increased soldiers patrolling in the border side. China relentlessly tries to contain India by offer unconditional supports to Pakistan. These are the matters which are very contentious in nature and seems difficult to resolve.

What is the prospect of Chindia?
The prospects of both countries joining hands for pursuing economical ends, are low. Looking to the present situation these two nations both have their status quo, to resolve the contentious border disputes. Until the border disputes does not get resolved peacefully the imagination of these two nations joining hands are very low.
Tibet issue is also one of the other complex issues to resolve between these two countries, which seems impossible to resolve in near future. Tibetan are living in our country since 1959, and now they are accustomed to live here. Hence displacing them as an Chinese agreement would be another very difficult task before our country.
There are other many issues like China fears of India's democracy. Their main concern is ideological difference in both countries. China is cautious of his population's growing demand of democracy. Henceforth friendship is unlikely to be established. Though both counties may wish to have facilitating trade policies with each other. Right now India's trade with China stands up to $60bn in last financial year.

What one can predict the situation would be in 2020?
I think by then India would be developed as a force to reckon for Chinese officials. We must have reached at least 40% of China's GDP. India have some challenges to address timely, before achieving this growth target. The biggest challenge would be to provide jobs to the growing young population. China need to improve his autocratic image before world and portray himself as a trust able and responsible country so that world can embrace them more easily. India has it's own set of problem like Moist insurgency in rural areas, Kashmir issue, and corruption. If we able to address these problem or at least not allowed them to come across our growth track, we would have became able to realize our goals of becoming superpower in global world stage.
Hope we surely achieve this target and able to realize the dreams of freedom fighters.

4 comments:

  1. Hi shravan first of all I want to thnak you that you put your views about India & china in a very simple & effective manner which is a great art.
    Now what I think if India Realy want to compete with China than India have only next 10yrs of time otherwise after that China will ran far away from us. The biggest challenge which India has to overcome in the time of next 10yrs is to anyhow train its 5oo million of unskilled population by manufacturing sector so lot of depend on labour laws, as our Govt.should have to made new labour laws with deep long lasting changes.
    As you talked about demography so what I think that for India & China positive demography may prove destiny.
    So lastly I want to say that India have a great chance to compete with China as India's economy is growing faster. But India to be sure that they have only further 10yrs of time. let's see what happens.

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  2. Dear Subodh,
    I agree that biggest challenge for our country for next decade would be to make our youth employable for jobs, otherwise this opportunity will turn into curse. Govt. is aware of this challenge, hence started ppp model for educating students of the country. Hope we emerge as a superpower of tomorrow.
    Regards
    Subodh

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  3. Dear Shravan,

    I liked the way you concluded the blog by predicting the situation in 2020. 40% of China's GDP is a reachable task & we hope to get there in a decade.

    Regards,
    Shoaib Qureshi
    http://soyasays.blogspot.com/

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  4. Dear Shoaib,
    Thanks for reading and sharing your thoughts. I have written, what i studied about these two countries and facts are alone indicator of future predictions.
    Hope our country overcome all challenges in coming years and we emerge out as peaceful prosperous country.
    Regards
    Shravan Gupta

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