An article in China’s state-sponsored Global Times has urged Chinese companies to update their knowledge about India before making investment decision. The article says that the popular image of India, the investors gather from media reports, doesn’t tell everything about the country. In fact, India’s condition is much better than what is often reported. While noting that number of rich people in India is “much bigger” than what many imagine, it said, “Many Chinese people think that India is a highly populated poor country characterized by diverse cultures, with frequent power cuts and a weak industrial base that is far inferior to China’s. That picture is true, to some extent, but it’s only a partial picture.”
“According to the 2017 ranking of the world’s richest people by the Hurun Report, India has 100 billionaires, the fourth-highest number of super rich in the world,” it added.
Compared to China’s government-led market development model, it said, “India’s federal government is slow to reach decisions. Yet, India’s development model allows innovative entrepreneurs to change the market from the bottom up.”
“Companies that grow big in the domestic market can go out to compete in the world and become driving forces for the country’s economic growth. As the market can offset flaws in governance, India’s entrepreneurship can compensate for its political deficiencies,” the article argued while advising Chinese companies to learn about India not just from media reports. “In addition to learning from the media, Chinese companies with plans to invest in India need to have a better understanding of the country from more sources, which may provide more data points for their investment decisions.”
The article published on Wednesday also said that India-China cooperation is being hampered by “misconception.”
“There is also a growing interest in India among Chinese companies, but many remain hesitant about investing in India due to concerns over its reform program and potential political risk,” it said. Further, the Global Times article noted, “The prevailing view in international academic circles is that India will likely replace China as the new “world’s factory,” which will be beneficial for China, India and even the world as a whole.”