2012 declared as the year of India-China friendship and cooperation

Strengthening India-China bilateral ties, leaders of both nations President Hu Jinatao and Prime Minister Manmohan Singh came together to declare 2012 as the year of India-China friendship and cooperation. Agreeing that bilateral relations were witnessing a very sound momentum, both leaders also unveiled initiatives to boost cultural exchanges and overall contacts. As the two largest developing nations and two major Asian powers, China and India face important development opportunities and China-India relations have great potential for further development, said Hu. He added that China is willing to see a peaceful, developed and prosperous India, and is committed to building a more rigorous China-India relationship. He proposed that the two sides enhance dialogue and coordination on regional issues to safeguard peace and stability and promote common development in the region. Singh said India-China relations are one of the most important bilateral relationships in the 21st century. The two countries can learn from each other and work together for development as both countries are seeking fast development. He also expressed the hope to work with China to maintain peace and security on the borders and properly resolve border issues through friendly talks. Recent, high level exchanges between the two neighbours have been further fortified by maintaining a friendly and open dialogue between the sweet and sour countries. During the talks, both nations also agreed to open their markets further to each other in order to promote regional trade and development. While China-India bilateral trade is on course to hit US$100 billion to 2015, Indias trade deficit with China continues to yawn. In lieu of the paltry present global

economic scene, the two nations also agreed that it would be prudent to boost bilateral trade to keep their GDPs from falling sharply. Analysts have predicted that both India and China will see a drop in GDP numbers next year. The neighbors identified a five point agenda for bettering bilateral relations First, the two countries should maintain high-level contacts and increase political mutual trust. The two countries should also expand exchanges between their governments, legislatures, political parties and the military, strengthen strategic communication through various consultation mechanisms and carry out dialogues on new topics such as maritime cooperation. Second, the two sides should deepen practical cooperation and expand mutual benefits. The two countries should enhance economic policy coordination and cooperate in the fields of infrastructure, information technology, mutual investment and environmental protection. Third, China and India should expand cultural and people-to-people exchanges so as to promote mutual understanding. Fourth, the two countries should properly handle their differences and work for peace and stability. They urged to push forward border talks in the spirit of peace, friendship, equality, mutual respect and mutual understanding so as to jointly safeguard peace and security on the borders. Finally, the two countries should strengthen communication and coordination to expand cooperation in international affairs. China and India should enhance coordination and cooperation within the frameworks of the United Nations, the Group of 20 and BRICS, among others, and work together to address major global challenges such as climate change, energy and food security. China and India are on their development pathways sustaining a fairly remarkable growth rate. Experts believe that these two countries have the potential to play a leadership role in the economic and development issues not only in the Asian region but globally. Given Chinas dominant position in the manufacturing sector and Indias in the information technology sector, there are significant opportunities for collaboration between the two countries. We believe Education is one such area where China and India can and must collaborate to nurture talents and build human resources in their respective countries. Any initiative in this regard would be beneficial for the growth of both nations. China develops Indias power ecosystem

Extending their range of services in India, Chinese power equipment companies are expanding operations and creating their own ecosystem in Indias power sector. While Shanghai Electric has long been supplying equipment to Reliance power, and China has also extended an almost US$2 billion loan towards the same, the move is aiding other Chinese companies into the sub continent. Recently, Anil Ambani led Reliance Power inked a deal with state-owned Chinese company China Datang Corp to develop and operate power and energy projects in India and overseas. Datang, is one of the five largest state-owned power producers in Mainland China with an installed capacity of 105,000 MW, over 50 percent of Indias total generation capacity, and employs about 98,000 people. It is engaged in the development and operation of power plants, the sale of electricity and thermal power, and the repair and maintenance of power equipment and power-related technical services. The JV is expected to particularly target coal-based power projects built on Chinese equipment in India. According to the Economic Times, the scope of the preliminary agreement includes setting up a joint venture in India to offer operation and maintenance services to power plants and China Datang assisting Reliance Power in commissioning projects including the 4,000 MW ultra mega power project at Sasan in Madhya Pradesh, Central India. Equipment for Reliances Sasan project was sourced from Shanghai Electric. Datang electric, headquartered in Beijing is listed on both the Hong Kong and London Stock Exchanges. While the agreement isnt limited to Reliances power projects in India, Datang has said it would assist Reliance in investing and developing three coal mines in Indonesia and laying the transportation infrastructure. As natural resources are limited, and coal based power is in high demand by both India and China, it only makes financial sense to collaborate rather than compete. China has long been providing Indias private and public power and infrastructure companies with equipment. Having

nudged their foot into the huge market, bringing equipment operation and maintenance companies is only the next natural step. Indian companies in china Indian enterprises operating in China either as representative offices, Wholly Owned Foreign Enterprises or Joint Ventures with Chinese companies are into manufacturing (pharmaceuticals, refractories, laminated tubes, auto-components, wind energy etc.), IT and ITenabled services (including IT education, software solutions, and specific software products), trading, banking and allied activities. While the Indian trading community is primarily confined to major port cities such as Guangzhou and Shenzhen, they are also present in large numbers in places where the Chinese have set up warehouses and wholesale markets such as Yiwu. Most of the Indian companies have a presence in Shanghai, which is Chinas financial center; while a few Indian companies have set up offices in the capital city of Beijing. Some of the prominent Indian companies in China include Dr. Reddys Laboratories, Aurobindo Pharma, Matrix Pharma, NIIT, Bharat Forge, Infosys, TCS, APTECH, Wipro, Mahindra Satyam, Dr. Reddys, Essel Packaging, Suzlon Energy, Reliance Industries, SUNDARAM Fasteners, Mahindra & Mahindra, TATA Sons, Binani Cements, etc. In the field of banking, ten Indian banks have set up operations in China.
State Bank of India (Shanghai), Bank of India (Shenzhen), Canara Bank (Shanghai) and Bank of Baroda (Guangzhou), have branch offices, while others (Punjab National Banks, UCO Bank, Allahabad Bank, Indian Overseas Bank, Union Bank of India etc.) have representative offices. Apart from PSU banks, private banks such as Axis, ICICI also have representative offices in China

Chinese companies in india

According to information available with the Embassy of India, close to 100 Chinese companies have established offices/operations in India. Many large Chinese state-owned companies in the field of machinery and infrastructure construction have won projects in India and have opened project offices in India. These include Sinosteel, Shougang International, Baoshan Iron & Steel Ltd, Sany Heavy Industry Ltd, Chongqing Lifan Industry Ltd, China Dongfang International, Sino Hydro Corporation etc. Many Chinese electronic, IT and hardware manufacturing companies also have operations in India. These include Huawei Technologies, ZTE, TCL, Haier etc. A large number of Chinese companies are involved in EPC projects in the Power Sector. These include Shanghai Electric, Harbin Electric, Dongfang Electric, Shenyang Electric etc. Chinese automobile major Beijing Automotive Industry Corporation (BAIC) has recently announced plans to invest US$ 250 million in an auto plant in Pune. TBEA a Xinjiang-based transformer manufacturer has firmed up plans to invest in a manufacturing facility in Gujarat. During the visit of Premier Wen to India, Huawei announced plans to invest in a telecom equipment manufacturing facility in Chennai.

Global outsourcing Opportunities & risks One signi cant feature of global outsourcing industry landscape in 2010 was narrowing revenue gap of China compared with the leader in offshore destinations, India. China is estimated to close the year with a revenue growth of 30percent compared with 14 percent of India. However, India is projected to lead the market with expected revenues of $54.33 billion, occupying 43.7 percent share of the total revenue of $124.41 billion of all offshore destinations.Indias weakening lead is due to the substantial efforts of China, the Philip-pines, and other off shoring destinations in building their capacity to attract sig- ni cant amount of investment. While India continues to remain the leader, the rest of the offshore countries are now beginning to mature, On the other hand, the Philippines, the third leading outsourcing destination globally, outpaced India in voice business process outsourcing (BPO) services. According to Everest Research, the Philippines was projected to earn $5.7 billion from voice BPO services against Indias revenue of $5.58 billion in 2010.Going forward in 2011, the outlook for the outsourcing industry remains strong as the companies Continue to invest recovering from the global economic recession. Chinas growing presenCe in the global outsourcing Industry. China oChinas outsourcing industry is fast picking up though it currently occupies a small fraction of the global outsourcing market. Currently, China stands second only to India in the preferred outsourcing destinations globally. In 2009, revenueifrom outsourcing services outsourcinin China increased by a record 151.9 percent to $10.1 billion, according to a data from the Commerce Ministry. Chinas growing presence in the global outsourcing industry is in uenced by many factors such as strong infrastructure, huge talent pool, diverse language skills, government support, and demographics. Besides, China is the most preferred destination for outsourcing and shared services for companies in AsiaPaci c region taking the lead over India, according to a report from KPMG, an auditing rm. KMPG estimates the Chinas outsourcing market to reach $43.9 billion by 2014. In August 2010, to promote growth and compete with Indias dominance in outsourcing industry, China announced business tax exemption of 5 percent for the outsourcing companies that will extend to the end of 2013 starting from July 1. The

tax exemptions will apply to all companies offering Information Technology Outsourcing (ITO, Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) in 21 cities in China. Furthermore, China was the among 15 economies that most reformed their business environment over the past ve years, according to a November 2010 report from International Finance Corp. (IFC) and the World Bank (WB).

hub for contact center services: g industryIndustry in 2011

The Philippines, a