India has raised the stakes

[Developereo]

Hari Seldon and deckinraj,

Both of you raise good points, so let me combine my response.

First, I didn't know that Indian economic growth is driven primarily by domestic demand. In that case, India is not as vulnerable to foreign pressure, I agree.

Secondly, I will concede that India has economies of scale in the services sector. However, India is becoming too expensive in some cases. One company I worked for went to Vietnam for outsourcing because they could get better value for money there. Sure, the big names will still go to India, but medium sized businesses cannot compete monetarily with the big guys and will go elsewhere.

As far as China and the US, they are wary of each other. My whole premise is that US foreign policy in the region is guided primarily by its China phobia. It doesn't mean they will make India go to war with China, but a strong India will make sure China doesn't get to dominate Asia, and venture beyond.

Finally, my point about China loaning money only applies to the US, not other Western countries. Exports to US only account for 10-15% of the Chinese economy and the number will continue to fall as China opens up more markets.

 

[deckingraj]

Hari Seldon and deckinraj,

Both of you raise good points, so let me combine my response.

First, I didn't know that Indian economic growth is driven primarily by domestic demand. In that case, India is not as vulnerable to foreign pressure, I agree.

There you get it....Thanks fo proving once again that you are rational and not a fanboy

Secondly, I will concede that India has economies of scale in the services sector. However, India is becoming too expensive in some cases. One company I worked for went to Vietnam for outsourcing because they could get better value for money there. Sure, the big names will still go to India, but medium sized businesses cannot compete monetarily with the big guys and will go elsewhere.

I can agree with you on that....However the biggest force of India is its work force....As said before small countries like vietnam are good destination for small scale service/manufacturing orders.....However these countries cannot provide(atleast in present context) workforce for bigger projects and that is where China and India score....

As far as China and the US, they are wary of each other. My whole premise is that US foreign policy in the region is guided primarily by its China phobia. It doesn't mean they will make India go to war with China, but a strong India will make sure China doesn't get to dominate Asia, and venture beyond.

Partially true....They need both China and India to sustain there economy and vice-versa...So the way things are going interests of all three will keep on getting intrerlocked and conflict would hurt all....

Finally, my point about China loaning money only applies to the US, not other Western countries. Exports to US only account for 10-15% of the Chinese economy and the number will continue to fall as China opens up more markets.

I would advice you to read a bit more on it....Chinese have pegged there currency against dollar and they have a daunting task ahead to do something about $1 trillion reserve and billions worth bonds.....