IndiaChina

India & China-two fast-growing giants-are increasingly affecting global markets and the global commons. Indeed, the two countries account for 37.5 percent of world population and 6.4 percent of the value of world output and income at current prices and exchange rates. 

China and India have been "a crucial locomotive of growth" for the world economy, and a continued strong economic growth in the two countries would be vital to help restore market confidence during the global financial meltdown. 

China overtook Japan in its foreign exchange reserve holdings and currently holds more than $1,500 billion in trade. The Indian economy has also seen a steep increase in GDP growth and a surge in exports. Despite a huge oil import bill, India’s foreign exchange reserves have swelled to $290 billion from around $50 billion in 2000. 

China may be stung in manufacturing and infrastructure and India in services and information technology, but the latter’s manufacturing industry is becoming globally competitive, while China’s technology sector threatens to match India’s in a decade. Both have a growing appetite for natural resources such as oil, coal, and iron ore, for which they compete fiercely. They also fight for capital, especially for investment by multi-national companies from North America, Europe and Japan. 

China and India have taken different routes to enter the world economy, and that has resulted in their gaining complementary strength. They have too much to lose by not working together. Both China and India are witnessing an explosion of entrepreneurship, but in ways that make their companies more complementary than the world realizes.