India & China: Govt. & Politics

After his recent vis­it to Chi­na, the Indi­an Prime Min­is­ter, Dr. Man­mo­han Singh had a mes­sage for the Indi­an indus­try: Try to learn from the Chi­nese indus­tri­al­ists. It was wide­ly broad­cast across all the Indi­an media. I do not know what he meant by that — Indi­an indus­try is as great or aspir­ing to be greater than the Chi­nese regard­ing qual­i­ty, size, or any oth­er para­me­ter you might choose.

Why are great Indi­an indus­tri­al­ists buy­ing and invest­ing in for­eign com­pa­nies, and not invest­ing in India? Why is FDI flow­ing into Chi­na at a much greater rate than into India? Wealth and invest­ment goes where there is least gov­ern­men­tal inter­fer­ence. This is the les­son our politi­cians are yet to learn.

In my opin­ion, it would be bet­ter if the Indi­an gov­ern­ment learnt from the Chi­nese gov­ern­ment regard­ing pol­i­tics and eco­nom­ics. Par­tic­u­lar­ly, the Indi­an Left, who is so glad about the PM’s vis­it to Chi­na, will do the nation a great good if it learns from the Chi­nese government’s eco­nom­ic prin­ci­ples. Chi­na has wel­comed all sorts of cap­i­tal­ist invest­ments, which the Indi­an Left still myopi­cal­ly oppos­es.

I thought the Indi­an PM is intel­li­gent enough not to dish out a moral lec­ture to the Indi­an indus­try when his own gov­ern­ment has failed to sup­port the indus­try. Does he think intel­li­gent Indi­ans do not see the irony and hypocrisy in his speech?

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  • I found your site on tech­no­rati and read a few of your oth­er posts. Keep up the good work. I just added your RSS feed to my Google News Read­er. Look­ing for­ward to read­ing more from you.

    Allen Tay­lor

  • So your Unqui­et Mind is at work again!
    Well, I do share your con­cerns about our indus­try, but don’t know the answers to your ques­tions. But I know one rea­son why more FDI is flow­ing into Chi­na. Their infra­struc­ture is far bet­ter than ours.

  • Not being a democ­ra­cy helps sometimes.The Chi­nese gov­ern­ment can take any deci­sion with­out hav­ing to both­er about the coali­tion partners.The rea­son for bet­ter infra­struc­ture is that in India oppo­si­tion has to cre­ate hur­dles for the sake of opposing.The oppo­si­tion to SEZ is a clas­sic example.Indian Left is a con­fused lot. They are not sure when, where and what to oppose.Their lead­ers speak dif­fer­ent lan­guages in dif­fer­ent states.

  • Mahen­dra: Indi­an com­pa­nies buy­ing firms abroad and for­eign investors invest­ing in Chi­na are both doing the same thing — buy­ing mar­ket access.

    The real game where India should be active is the sov­er­eign invest­ment vehi­cles. That is the real long-term game — buy­ing polit­i­cal pow­er.

    So while I agree we can learn some­thing from Chi­na, it is a les­son in the evolved art of inter­na­tion­al pol­i­tics!

    PS: Ever won­der why Sun Tzu is taught in Strat­e­gy cours­es but not Arthashas­tra? We also need bet­ter PR as a nation.

  • well its a sad irony that an intel­li­gent per­son like Mms is in such a state…

    Con­gress pol­i­cy is for more laws more bureau­cra­cy more tax­es and more com­pli­ca­tions — they accrue the most ben­e­fit out of it its back to the license per­mit raj

    most peo­ple spend more on tax com­pli­ance than the tax­es

    last­ly i was remind­ed about mr mit­tal and how he picked the same same incom­pe­tent bureau­crats and babus from India and how they made his com­pa­ny a world­wide enti­ty and a steel giant

  • I beg to dif­fer that not being democ­ra­cy helps. India is a sta­ble demo­c­ra­t­ic nation, and thats why it is striv­ing even after being in a state of war for about 20 yrs now. The threats India faced in the past two decades is sim­i­lar to a mod­ern war time sce­nario. And yet its striv­ing , Aver­age Indi­an Life style is bet­ter than theeir chi­nese coun­ter­parts. We can be count­ed as lucky to have such a great judi­cia­ry and there is a true sense of free­dom but in Chi­na Life is con­trolled by state and
    what we see of chi­na is noth­ing but a brochure. They have insen­si­ble laws which even you would protest if they were to be intro­duced in India. We pay heed to all sec­tion of peo­ple. Its easy to throw the poor to remotest part and show­case select­ed city .