China and India as Business Destinations


The current wave of globalization has transformed how business operations are executed. Within the past three decades, the number of multinational firms doing business in foreign countries has increased significantly. New practices such as offshoring and outsourcing have become common in the recent past (Gaspar et al. 12). These developments have been observed to influence the performance of many businesses. International businesses have been focusing on different destinations that can result in improved performance. India and China are favored by many entrepreneurs because they offer numerous opportunities for international business. This discussion, therefore, gives a comparative analysis of these two nations.

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Comparing India and China

Industry Analysis

Statistics show clearly India and China are characterized by stable economic growth patterns. However, the countries appear to take divergent paths in terms of economic development. To begin with, China has been observed to merge western practices and their cultural values. The best practices are then developed and applied to the major sectors in the country. On the other hand, India has focused on “the best strategies to promote economic growth through the use of its internal resources” (Buga and Meyer 16). Morrison indicates that India has mainly been focusing on specific industries and technologies to remain successful (18). Engineering technology is one of the leading industry practices in India. This move has led to the creation of competitive and effective information technology (IT) systems.

Industrial restructuring is another phenomenon that has been taken seriously in China. For instance, the agricultural sector has lost its share within the past three decades. The industry commands around 12 percent of the country’s Gross Domestic Product (Sun 6). The other sectors of the economy such as manufacturing and processing have increased within the past 25 years. The nation’s manufacturing and technology industries are some of the largest in the world today. In India, agriculture still commands over 21 percent of the GDP. The manufacturing and industrial process sectors command a share of around 26 percent of the GDP (Buga and Meyer 4).

The service sector in India has also increased significantly within the past two decades. For instance, consulting, offshore, and banking services are common in India. The provision of such services explains why some companies such as IBM and General Electric are common in India (Sun 5). Multinational companies such as Apple Incorporation, Dell, and McDonald’s have decided to expand their operations to China (Sun 8). This is the case because of the nature of its population and economic performance.

Global Market

India and China are emerging economies that continue to reshape the nature of multinational businesses. They have become favorite markets for global products and services. Morrison believes strongly that China has become a stronger player due to its sustainable economic policies (17). The growing Chinese population attracts many companies that want to do business in the country. China has remained one of the preferable business destinations for the past one decade. The country has become a favorable global market because it enjoys some of the best functions in finance, communication, and management (Kalirajan et al. 6).

On the other, India’s economic growth has remained high and sustainable since the year 1996 (Morrison 16). The country has exceeded China in terms of economic growth. The availability of quality services in the country is a major reason why more companies prefer the Indian market. Buga and Meyer argue strongly that “India has been replacing China as the best destination for lower-end export manufacturing” (7). The country is also targeted by different marketers to record positive performance. Chances are high that India will globalize faster than China shortly. The Indian strategy and market are therefore attracting more international entrepreneurs than ever before.

Selling Power

China and India have established unique trading agreements to promote their respective economies. As mentioned earlier, these countries have diverse industrial powers. That being the case, the leading industries in the countries continue to attract different trade partners. For instance, China happens to be one of the largest manufacturing destinations in the world. The Chinese manufacturing industry made it easier for the country to sell a wide range of materials and products to different global customers (Sun 9). China is also the leading manufacturer and exporter of various consumer goods and appliances. Within the past decade, China’s exports have averaged over 950 billion US dollars (Morrison 11). On the other hand, India’s exports during the same period have averaged $120 billion (Kalirajan et al. 11). This analysis shows clearly that China is still a bigger economy.

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India, on the other hand, has been on the frontline to expand its industries to record positive economic results. The service industry has continued to attract the attention of many multinational corporations. India’s service industry is currently marketing to different companies in countries such as the United States, the United Kingdom, Italy, and Canada (Buga and Meyer 8). Future projections show clearly that both India and China might expand their industrial processes and eventually become some of the leading exporters in the world. Consequently, the countries will find it easier to sustain their economies and become successful.


Several attributes or metrics can be used to project the future of these two economies. India’s population is currently around one billion while that of China is 1.3 (Gaspar et al. 49). China remains a communist nation whose economy has been growing very fast. At the same time, India is believed to be the largest democracy in the world. That being the case, India has been able to come up with a new model that promotes economic development and performance. China has been implementing powerful policies that have the potential to promote economic performance. Despite such transformations, the power of globalization has been observed to change how business operations take place (Morrison 29). This is a clear indication that these emerging giants will continue to face competition from various countries.

Japan and South Korea have dominated various industries and sectors within the past forty years. For instance, the Japanese automobile industry has been unshaken for decades. This has also been the same case for the real estate and manufacturing sectors. South Korea’s an automobile and technology industries have a large share in the Asian market. Emerging nations such as Brazil and Russia have been observed to disorient the nature of global trade. Cultural differences have made it impossible for India and China to take an early lead (Kalirajan et al. 12). Experts believe that new business or market destinations are expected to emerge shortly. However, it would be appropriate for China and India to focus on their current economic models to realize their goals. The approach will eventually support more corporations both locally and globally.

Works Cited

Buga, Natalia, and Jean-Baptiste Meyer. “Indian Human Resource Mobility: Brain Drain versus Brain Gain.” Robert Schuman Center for Advanced Studies, vol. 1, no. 1, 2012, pp. 1-23.

Gaspar, Julian, et al. Introduction to Global Business: Understanding the International Environment & Global Business Functions. Cengage Learning, 2016.

Kalirajan, Kaliappa, et al. “Have China and India Achieved their Potential in Attracting Foreign Direct Investment?” JEKEM, vol. 4, no. 3, 2012, pp. 1-20.

Morrison, Wayne. “China’s Economic Rise: History, Trends, Challenges, and Implications for the United States.” Congressional Research Service, vol. 1, no. 1, 2015, pp. 1-44.

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Sun, Sunny, et al. “A Comparative Ownership Advantage Framework for Cross-Border M&As: The Rise of Chinese and Indian MNEs.” Journal of World Business, vol. 47, no. 1, 2012, pp. 4-16.

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