There is much self-congratulation in India over how well the country survived the financial crisis, how it is rivaling China in economic growth, and how vibrant domestic demand has sustained it while other nations battle over exports.
Shashi Ruia, chairman of Essar Group, the oil-to-outsourcing conglomerate, is rarely seen on the public stage. But he delivered a refreshing balloon pop to, well, basically all of the above when he stood before the Hindustan Times Leadership Summit in New Delhi Friday.
India will only become a truly global countryand reap the rewards of globalizationwhen it is able to sell its own goods in the world marketplace, as opposed to just buying up companies worldwide.
It is not enough to produce and sell in India, he said, because the Indian market alone wont be enough to sustain Indias growth; we need to reach out to other markets.
He noted that China is now the dominant foreign player in the U.S., the Nafta trade region, Australia and Japanplaces east of its eastern border.
Indias opportunity to mimic that lies in the Middle East, Africa, Europe and Russia where India has to go to occupy its rightful place, Mr. Ruia said.
But to get there, Indian entrepreneurship wont be enoughthe nation needs to become a leader in manufacturing and infrastructure, two areas where it can learn from China.
He then rattled off a series of annualized comparisons that should be essential reading for anyone who believes India and China belong in the same class of emerging economies. Here they are:
India makes 65 million tons of steel, China makes 650 million.
China makes 11 million cars a year. India makes two million.
India-U.S. trade totals $50 billion. China-U.S. trade totals $450 billion.
Unspoken was the suggestion that China has all theseand, for now, is leaving India in the dust.
