CII Communique November 2012

eviewRetracing the Path to ProsperityLessons from India – China Business PartnershipThe book tells stories of companies as diverseas Infosys, Mahindra, Dr Reddy’s Labs, UnitedPhosphorus, Sterlite and Adani Power, amongst others.These stories reveal that there is no one formula whichcan predict how a company can establish a strongpresence outside its home market. But collectively, theyshow that, for the two large Asian economies whichare on the threshold of regaining their pre-eminentposition in the world economy, there is no other optionbut to understand the opportunities that the 21st centurypresents, and make the most of them.Retracing the Path to ProsperityEmbassy of India, Beijing Confederation of Indian IndustryRetracing the Pathto ProsperityLessons from India - ChinaBusiness PartnershipBeing in China provides Indian companiesnot only a platform for growth in the world'ssecond-largest economy, but internationalexperience that can be parlayed into opportunitiesin markets around the world. And for the Chinesecities, provinces and regions that are the focus ofinvestment by Indian companies, their presence bringsemployment, economic growth, and a commitment tothe communities and people with which they interact.These companies and investors are helping to build upa strong sense of ‘Brand India’ in China, showing thatIndian companies and people are valuable businesspartners. In industries ranging from raw materials andheavy industry through information technology andconsulting, nearly 200 Indian companies are alreadyparticipating in China's remarkable growth story,recognizing that their presence in the country is integralto their global success. This publication distills theirexperience and draws valuable lessons for economiccooperation.Leading the Innovation ChargeAs China gradually tries to move away frominvestment-driven growth and an export model basedon low-cost manufacturing, innovation is playing anincreasingly crucial role in the country's next stage ofdevelopment. In the 12th Five-Year Plan, which runsthrough 2015, Beijing has put a priority on advancedindustries including IT, new energy, biotechnology,and energy conservation.China has also set specific goals for innovation,including a target of 3.3 patents per 10,000 people.Government investment in key areas including scientificresearch, IT and environmental protection is likely to totalseveral billion dollars over the five years, according toindustry estimates. The plan is designed to move thecountry up the value chain in manufacturing, while alsoestablishing it as a centre of innovation and cuttingedgecompanies.Like any top-down plan, however, the key is in theimplementation. Governments can help fund and createenvironments conducive to innovative activity, butultimately innovation is up to the innovators themselves,be they from China or overseas. Indian companiespresent in China are finding that they have a strong roleCommuniqué November 2012 | 83