Niche opportunities abound in China

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: handicaps such as language, international commercial transactions among others. However, Indian companies could tie-up with such Chinese SMEs, supplement them with their Indian operations and export to third countries. Examples, such as that of Mahindra and Mahindra in small tractors, underline a potential opportunity wherein their Chinese and Indian operations have complimented each other to win American markets.

Therefore, the study provides solid evidence that in areas where India has clear competitive advantage over our competitors or where we could be the supplier of choice, even there we have not served the Chinese markets to the fraction of the existing potential. Besides, there are a large number of niches for Indian SMEs to exploit in almost all product categories, which cannot be captured by empirical analysis based on cost alone. Such opportunities are based on smaller order sizes for special products, of some unique qualities and the like. These opportunities could be known only when Indian SMEs chase the Chinese markets with the same vigour and tenacity as we chase the EU and the US markets.