| INTRODUCTION | | | | budgets, which in reality is bankrupt. In fact state |
| India must leverage in order to become a truly global | | | | government budgets are being financed by the |
| superpower, because of the rapid growth in primary | | | | center. Also, defense, subsidies, pension, salaries, |
| and tertiary sectors. Besides that, the conviction | | | | interest on past loans are the irreducible components |
| about India's demographic strengths and its ability to | | | | of the budget and they constitute 98 % of Indian |
| overtake China possibly by 2015. | | | | government revenues. The rising issues at the Center |
| In this context, it is really worthy in explaining the | | | | have forced the Government to finance |
| drivers of growth for any economy. To put forth, | | | | development projects through loans from banks. "For |
| how the rate of growth of an economy depends on | | | | every rupee the government takes as fresh loan, 99 |
| the factors of capital, labour and innovation aided by | | | | paise has to be paid for past loans and interest," |
| savings of an economy. It has been felt that | | | | We throw out existing people in power and bring in |
| developed countries rely up to 75% on innovation to | | | | new people for taking reformative action." Therefore |
| fuel their growth and 25% is contributed by | | | | we may require another crisis and a revolution before |
| perseverance (labour and capital). Furthermore, how | | | | we not only catch up with China but leave them |
| imperative it was for economies to develop their | | | | behind. |
| infrastructure to attract investments. While emphasis | | | | The people are also an invaluable asset according to |
| is on the infrastructure like power, roads and ports, | | | | Dr. Swamy and India's rising population can be used |
| the importance of soft infrastructure like | | | | for creating a strong economic growth model. "I |
| Governance, law and order, stability and financial | | | | want men also producing children if they can" he said |
| markets should not be diluted. | | | | on a lighter note. The one child policy (under heavy |
| POSITIVE TRENDS IN INDIA: | | | | debate in India) has made in roads into China which |
| During the period 1950 to 1980 both India and China, | | | | now faces a declining active workforce. It is |
| followed the Russian economic model and clocked a | | | | therefore a must to leverage India's clear |
| modest growth rate of 3.5%. In 1980, China changed | | | | demographic advantage, by actively promoting |
| its economic model and started clocking a growth | | | | primary and secondary education. |
| rate of 9% while the growth rate of India still | | | | India has the capabilities and innovative capacity to |
| lingered at around 4%. It was only in 1991 that | | | | spearhead the convergence of Information |
| economic reforms were brought about in India and | | | | technology, biotechnology and nanotechnology which |
| since then we have maintained a healthy growth rate | | | | is sure to bring about a huge boom in the economy. |
| in comparison to China. But India has still not been | | | | The citizen has to elect leaders intelligently and to |
| able to plug the gap China had created during the | | | | elect those with the ability to perform in a modern |
| eighties. | | | | and complex world. The goal should be to compete |
| To compare the two economics, | | | | headlong with the US on innovation, and to innovate |
| - India is more efficient in the use of resources than | | | | we must build an atmosphere of freedom and high |
| China, which he substantiated with consumption of Oil | | | | quality education. |
| and other resources within the two countries. | | | | "Sale of advice" is defined as – unbiased |
| - The disparity in the living standards between | | | | recommendation and solution to problems faced by |
| eastern and western China is more thus the progress | | | | various client firms with an "outsider looking in" |
| shown by China is partial only to the eastern | | | | approach. The three fundamental steps in a consulting |
| provinces. | | | | project are: |
| Also China is surrounded by countries like Singapore, | | | | To diagnose the problem, device solution and |
| Hong Kong, Korea etc which are economically strong | | | | implement it. The essence of management expertise |
| and healthy countries. On the other hand India has | | | | in a consulting business is: knowledge acquisition, |
| neighbouring countries like Pakistan, Bangladesh etc | | | | consolidation and exploitation. It is significant to learn |
| which have a weaker economy and not much scope | | | | by experience dealing with customers and apply this |
| for big trade relations. In fact China's dependence on | | | | knowledge appropriately for a new problem and a |
| its export-led model is one of the key problems | | | | new customer. |
| facing the country. | | | | It is observed that it is difficult to always find all the |
| India, on the other hand follows a predominantly | | | | right people a customer wants in terms of |
| service and consumption model with more | | | | specialization and credentials, in which case it is |
| dependence on home-grown entrepreneurship | | | | necessary to collaborate with competitors and exploit |
| capabilities. This would strengthen India's position in | | | | the synergy of resources. |
| the long-run compared to China which is still largely | | | | With regard to the growth opportunities in India, |
| dependent on U.S. | | | | It is noted that global clients increasingly want to |
| Another strong point in favour of India is the rapid | | | | exploit the off-shore advantage which India provides. |
| pace of continuing liberalization and the democracy | | | | The overall domestic demand is also on the rise due |
| which has allowed it to attract a larger number of | | | | to booming sectors like financial services, knowledge |
| foreign investors. China along with the longstanding | | | | management, entertainment & media, aviation, |
| dominance of the communist party and the problem | | | | hospitality and retail sector. Every business was |
| of intellectual property rights has "made foreigners | | | | optimistic about the upswing in global demand for |
| exasperated". | | | | both analytical consulting based on data crunching and |
| Despite China's present success and India's | | | | management consulting by working closely with |
| opportunities in the future, Dr. Swamy was quick to | | | | clients. |
| point out that both countries still face many problems | | | | EPILOGUE: |
| due to a malfunctioning financial system. For instance, | | | | From the aforesaid discussion it is felt that, the |
| in China the banking system has become bankrupt | | | | values, ethics and passion that one needs to inculcate |
| and public sectors are uncompetitive. In addition to | | | | and the need to align what one does, sees & |
| this China is yet to follow the World Trade | | | | says, for succeeding in a business. While starting a |
| Organization mandate that allows foreign banks to | | | | business, one has to be conscious of the following: |
| take deposits from Chinese citizens who are | | | | wrong reasons for choosing a business, importance |
| currently earning zero interest on Government | | | | of being passionate, |
| deposits. | | | | Choosing the right team, right business plan and |
| India's issue is not just purely due to the financial | | | | how one is different from others while doing that |
| system but more related to state and center | | | | business. |