Will Europe Drag Down China, And Why We Like India

[deepak75]

blah blah x vs. y who cares, did anybody actually read the article besides its last sentence? I fail to grasp just exactly how "insulated" and "protectionist" policies are actually pluses for foreign investment, can anybody explain it to me?

Let me try to help you with that by drawing from the original article.

Domestic Demand: India is not an export-driven country. It is an insulated country that booms on local demand, and is not subject to the fluctuations of international markets or currencies.

Meaning that economic crisis in distant markets does not impact India that much and it is more of a self sustaining economy with robust domestic demand that can drive the local production.

Protection: India has put in place protective business policies that defend domestic companies from direct international competition.

Amounts to a clear indication that any investor in India will be provided with level playing field and goods from distant markets will not have an unfair advantage that they may draw from their origin countries (government subsidies, manipulated currencies??) which is not the case with a lot of other economies in Asia where China is pushing its surplus production at costs which are abysmally lower than that of the local manufacturers thus ultimately leading to erosion of total manufacturing capability in the local economy.

Is that not a big comfort = The investor pushing capital in India can be sure that a funny policy from China will not wipe off her investment and capital?

 

[faithfulguy]

Let me try to help you with that by drawing from the original article.




Meaning that economic crisis in distant markets does not impact India that much and it is more of a self sustaining economy with robust domestic demand that can drive the local production.



Amounts to a clear indication that any investor in India will be provided with level playing field and goods from distant markets will not have an unfair advantage that they may draw from their origin countries (government subsidies, manipulated currencies??) which is not the case with a lot of other economies in Asia where China is pushing its surplus production at costs which are abysmally lower than that of the local manufacturers thus ultimately leading to erosion of total manufacturing capability in the local economy.

Is that not a big comfort = The investor pushing capital in India can be sure that a funny policy from China will not wipe off her investment and capital?

Most country in Asia had unfair practices when it comes to trade. Actually, expand that to Europe and North America. US also have unfair trade practices when it comes to protect its farmers. Japan and MITI is nortorious for government control trade. China, being a "controlled" economy in name while a capitalist in practice, definitly has some controlled elements.

It appear that India is attempting to get the Chinese companies to open up shop in India and employ Indians to do the manufacturing in order to get into the market? This is actually a gamble because if these Chinese companies doesn't do that, than the Indian government either have to eat its word but more likely would go for the much more expensive Japanese, Korean or western suppliers. Would the Indian gov also demand that these countries set up shop in India?

 

[HQ19HQ26]

nar·cis·sism (närs-szm) also nar·cism (-szm)
n.
1. Excessive love or admiration of oneself. See Synonyms at conceit.
2. A psychological condition characterized by self-preoccupation, lack of empathy, and unconscious deficits in self-esteem.
3. Erotic pleasure derived from contemplation or admiration of one's own body or self, especially as a fixation on or a regression to an infantile stage of development.
4. The attribute of the human psyche charactized by admiration of oneself but within normal limits.

 

[deepak75]

Most country in Asia had unfair practices when it comes to trade. Actually, expand that to Europe and North America. US also have unfair trade practices when it comes to protect its farmers. Japan and MITI is nortorious for government control trade. China, being a "controlled" economy in name while a capitalist in practice, definitly has some controlled elements.

It appear that India is attempting to get the Chinese companies to open up shop in India and employ Indians to do the manufacturing in order to get into the market? This is actually a gamble because if these Chinese companies doesn't do that, than the Indian government either have to eat its word but more likely would go for the much more expensive Japanese, Korean or western suppliers. Would the Indian gov also demand that these countries set up shop in India?

There is a difference between "protectionism" and "unfairness" when it comes to trade practices. I am sure that this should give you a good idea about the comparison that you made about various trade practices over the world.

Regarding you thoughts about India eating its words, not possible. Any material when made in India by any manufacturer will hypothecially be equally competitive. There could be minor differences in the conversion/production cost basis the technological prowess of the different manufacturers but on the whole with the demand expected to surpass the supplies, everybody will be getting their peice of the cake relative to their investment size.

So bottomline, if the Chinese suppliers do not "set up shop" in India, it is their bus to miss.

 

[uday]

HQ19HQ26, your avatar looks funny!!! ha ha ha ha ha....
who is that funny character???

 

[dingyibvs]

Let me try to help you with that by drawing from the original article.




Meaning that economic crisis in distant markets does not impact India that much and it is more of a self sustaining economy with robust domestic demand that can drive the local production.



Amounts to a clear indication that any investor in India will be provided with level playing field and goods from distant markets will not have an unfair advantage that they may draw from their origin countries (government subsidies, manipulated currencies??) which is not the case with a lot of other economies in Asia where China is pushing its surplus production at costs which are abysmally lower than that of the local manufacturers thus ultimately leading to erosion of total manufacturing capability in the local economy.

Is that not a big comfort = The investor pushing capital in India can be sure that a funny policy from China will not wipe off her investment and capital?

Ah, I see, so in essence, the insulation and protection would extend to foreign companies operating in India as well. They'd basically become Indian companies. Now, would those companies be encouraged to expand its target market by exporting as well? That would kind of undermine the self-reliance of India, no?

 

[deepak75]

Ah, I see, so in essence, the insulation and protection would extend to foreign companies operating in India as well. They'd basically become Indian companies. Now, would those companies be encouraged to expand its target market by exporting as well? That would kind of undermine the self-reliance of India, no?

Well, going by your informed comments, I am sure you know the answers already. But let me add a bit:

Foreign companies do not become Indian when they invest in India however, the investment vehicle will surely become Indian company.

Regarding the export orientation of these investment vehicles, for sure they will always have the option.

Project evaluation always is a factor of threshold, potential & desired RoI so it is all about the investor's analysis of the opportunity.

Now evaluate the export reliance of an investment in the light of the above and see what it undermines....

 

[Kyusuibu Honbu]

trolling on the forum. China is among the poorest countries inth world on per capita basic..... and no of poor ppl in China far exceeds that in India....
India has even growth, umlike CHina whre a few thousand have the wealth whereas the vast majority is like living worse then a poor african country....

Your post in no way makes any sense.

But it does make sense if your intentions are to embarrass fellow Indians here

By the way faithfullguy is Taiwanese.

 

[Kyusuibu Honbu]

If you take the GDP of the whole Africa, which probably has about as many people as the whole India, the overall GDP would be about the same.

India has over 1.1 billion people. So its economic is trillion dollars. Africa also has a trillion dollar economy as of 2007 as a continent. So its just a per capita comparason.

Economy of Africa - Wikipedia, the free encyclopedia

As for India's economic growth, its commendable. But its not extra ordinary as compare to other economys of Asia as a whole.

I hope you realize you are comparing a whole continent with a nation.

But i"ll agree on your 1st comment India has to develop a lot.

 

[mike05]

Your post in no way makes any sense.

But it does make sense if your intentions are to embarrass fellow Indians here

By the way faithfullguy is Taiwanese.

Great to find some level headed chaps amongst the forum. Cheers mate!