Why Indian IT sector will fare better than China?

*China and India-the two countries that are under consideration for the future leaders of the world economy. They are considered to be the economies that can carry the world in this slump times also.

But if comparison is to be made regarding these economies, China irrespective of such a huge IT manufacturing hub lacks in the networking. China has large potential resources lying with it. The foreign investments flowing in the country has helped China to progress so well. The large manufacturing units, foreign investments and the huge internet penetration have helped China to do so better on the global front.
If India is to be considered, no doubt it lags at points where China is picking but still has much potential to compete. If few recent years are considered India has also registered a growth rate of approximately 7% which is more or less same to the growth rate of China. Even India has attracted many foreign investments recently and the last year’s foreign influx of $ 6 billion is worth considering. But if compared to China it is just one-tenth of what China had been successful to attract. The love of foreign investors and skepticism towards India is thoughtful.

The reasons for such large disparity are poor infrastructure, low connectivity, poor educational ratios, low penetration of Internet and broadband and the last but the most impacting is the economy drivers. The Chinese economy is export driven and attracts more foreign influxes where as India concentrates more on domestic market rather than thinking for brighter prospects of international trade. The good part is that India has also redefined its policies and has gelled with global economy. The recently framed policies favor the Indian growth on global front and to redefine its position in global mart. These policies have gelled India with the foreign markets and India is now considered far better networked than China.’

The recent reports confirmed that manufacturing hub China is lagging behind if the foreign connectivity is considered. India is far better on the foreign fronts and has made its presence strongly felt in the world map. According to Global Information Technology Report 2008-2009 China is lagging by seven positions from India. India ranks 50th and China is standing at 57thposition. The Indian economy is lacking so much because of the root factors like the improper infrastructure, low literacy rates, political imbalances and the Governmental policies. It has started to work on these weaknesses and the result is worth praising.

With the advent of policies favoring the economical growth India.Jai Hind!:)