India and China: Two emerging giants – Infinite opportunities, numerous challenges!!

My visit to various business houses from diverse sectors in India and the exposure to my kind colleagues’ experience in China has expanded the horizon of my understanding about how emerging markets operate, infinite opportunities they offer and the numerous challenges that business face in these markets. It was surprising to know how some policies and principles were both beneficial to some businesses and obstacles to some others. Both the countries are not so easy to operate with corruption being the biggest monster holding the economies back. Other formidable wall in the path is protection of intellectual rights. Innovation and entrepreneurship are spurring in both the economies, however, more prominently in India and this process is being threatened because of the fear of losing the opportunity to capture the market. Lack of effective laws that enforce IP rights and punish the guilty is an institutional void that should be bridged as the earliest.

In China a general pattern subsidizing public sector companies can be observed whereas in India the market is more competitive. However, critical sectors such as defense, agriculture etc., are controlled in India as well. Extensive governmental interference in China is beneficial to some business as it overcomes red tape in the system, however, businesses face ownership and control problem. In India, the red tape and inefficient governmental policies have hurt the economy badly that the GDP growth is expected to fall below 5 %. Interestingly, youth in both the countries have developed and are developing a taste for western goods and culture and this has created a huge market for western products such as branded clothing, electronics, fast food chains etc., This trend will continue to increase and companies should come up with one ‘in country, for country’ idea rather than transplanting thoughts developed in western world.

Inequality is one more aspect that could be harmful to these countries in future and inclusive development is the buzz word anyone would hear in India. Rapid and unplanned growth and shortsighted vision are prime reasons for inequality. An impatient, restless, underserved and ignored section of society is visible in almost all parts of countries. Also, the pressure on people, their culture, their way of living and environment due to inequitable growth have forced governments to seek out sustainable developmental goals. Filling institutional voids is very crucial and I hope the two emerging markets would take care of equity issues and result in a healthy society.

Culturally both the countries are diverse and especially, India is a melting pot. The giant ancient structures speak about the history and the rich culture. The beautiful Taj Mahal and the mighty Great Wall cannot be described just in words, they are eternal beauties! Indian Food is unique and every place we visited had its own cuisine. And, China is the place for meat lovers!! My colleagues ate dishes that many would not even imagine!!

As we move towards a more globalized world, no part of the globe can be ignored. The growth of India and China has certainly shifted the balance of power, however, the sustainability of this change is yet to be verified. We see a world that us rapidly changing and people swiftly adapting to these changes.