Yifang:
As a country plagued by rampant racism and widespread poverty, it is amazing that India has produced so many extradinary businesses and entreupreneurs.
Wangshi:
Why shall we compare with India? Some netizens may sniff at the idea .
Chinese people are often inclined to make comparision with the advanced countries, find the gap and then think up improving measures to catch up. Naturally. the U.S. has always been used as a yardstick in comparision. There are many benefits to do so. Nevetheless, due to the great variances in the culture, economy, history etc. between the two countries, there are also deficiencies to do so. Many experiences borrowed from the U.S. tend to be ineffective in China.
Different from that China-US comparision, there are many more similarities shared by China and India, the subcontinent South Asian country. Comparing China with India is more provocative than the China-US comparision.
"India has a more develeoped or comprehensive financial market than China", concluded by Mr. Guo Hongli, a Chinese Ph.D and scholar, after an extensive field investigation into the Indian financial market.
India's capital market is well-developed, highly efficient and more transparent. It boasts soundness in institutional structure and market development. Market mechanism provides a good basis for development of private businesses in India. Thanks to support from a sound capital market system, state-owned businesses in India surpass their Chinese counterparts in privatization speed and there are more fairness, tranparency and social just in the Indian economy.
India's muti-level stock market system comprises 23 stock exchanges. Once the economic engine is started and the economic development reach a certain level, capital market will serve as an important impetus for resources allocation and indutrial upgrade. India attracted second largest high-tech venture capital in Aisa, with China lagging far behind. Many of these investment are channeled into information industry and bio-technological industry. In the year 2002, while 13 Indian businesses have been selected as the 200 best small enterprises by Forbes, only 4 small businesses from China enter enter the 200 best club.
Although China's aggregate economy is developing at fast speed, there are very few world-class private enterprises that can compete with large transnational companies. In contrast, the multi-level stock market mechanism in India gave rise to a large group of knowledge-based enterprises that can compete with big European and US enterprises. For instance, infosys and Wipro in software industry, Ranbaxy and Dr. Reddy's Labs in phamaceutical and biotechnology.
Furthermore, a basically sound political and legal system creates a business climate conducive to development of private enterprises. Internationally, there is a popular saying describing differences between the development of China and India : while China may be the world factory for the time being,India is more poised to be the world high-tech lab.