China or India

Where do we have to invest, China or India? There are three reasons to invest in China rather than India.

First, China leads India in terms of economy growth rate; therefore, we can expect much more return on investments than India. China's GDP totaled 3,100 billion U.S. dollars in the year of 2007, up to 11 percent over the same period last year, according to the China National Bank. However, India raised GDP growth of 8.7 percent, up to 928billion dollars in total GDP according to the Reserve Bank of India. This economic data appears to be sustainable until two or three years after, as we have seen so far.

Second, China leads India in terms of market size; therefore, we can expect much more opportunities than India. China’s GDP per person was 2,280 dollars in the year of 2007; on the other hand, India’s GDP per person was 830 dollars in the same year according to National Bank. As the China’s economy grows, the brand market will grows as well. This means that international brand market will grows much more rapidly in China than in India. In addition, because China is the site for the next Olympic Games, all the global companies will invest or try to enter this attractive market by the year of 2010.

Third, China’s dominant industry is manufacturing; however, India is strong in technology and IT services high value industry, but is obviously not a high volume industry. Typically, service industry does not rely on high, intensive capital, on which China’s manufacturing industry has relied to a great extent. By this reason, a large number of foreign investments are turning toward China, and we need to move forward with the same reason.

In conclusion, in terms of growth rate, market size, and the event of Beijing Olympic, to invest China is the best choice. The decision of China investment is most critical to the growth of our company and the right decision will lead us to be a global leader.