Deutsche Bank Warns Services Sector Against The Dragon

New Delhi, May 20: | Updated: May 21 2003, 05:30am hrs
Deutsche Bank has cautioned the Indian services sector against the emerging threat from China.

Chinas services sector is evolving fast and the forthcoming 2008 Olympics is a major driving force behind the same, Deutsche Banks senior economist Sanjeev Sanyal said. He was addressing a seminar on India- China: Asian Giants, organised by Confederation of Indian Industry here on Tuesday.

Even today, Indias strength lies in services while China is strong in manufacturing. This makes the two economies complementary, he said.

Mr Sanyal said that in all likelihood, the future relationship between China and India will be both complementary and aggressively competitive.

While speaking on the issue, Congress leader Jairam Ramesh stressed on the need to change the political mindset. If we think that China is a security threat and Chinese think that India is not going to open up certain sectors for them, the bilateral economic ties between the two countries would not go far, he said.