In my earlier post, I stated that the trend of investing in manufacturing sector in China and Knowledge based outsourcing in India is going to change. The change is coming for two reasons: manufacturing sector of China and IT outsourcing sector of India is gradually becoming crowded and sooner or later investment will not yield high level of profit like the past. Secondly, Chinese government is now trying that the country can shine in service sector while Indian government is becoming desperate to attract foreign direct investment (FDI) in the manufacturing sector to generate thousands of jobs every year. And finally, the continuous high growth in the economies of China and India is creating a very attractive local market for both manufacturing and service sectors in these two countries. For example, now, more than 1 million cars are produced in India every year because of the huge local market for cars here. On the other hand, China saw 40% increase in websites in 2005.
Thus, foreign companies will surely going to now target the manufacturing sector of India and service sector of China. The wind of change has started blowing and I am happy that I am one of the few bloggers who are covering this wind of change in both the countries.
What do you think about this change?
I think still IT is forIndia and Manufacture for China, if they want to battling hardly. China with their overprotective Internet access can't beat India in IT. But their overpopulated people with low wages can't be overlapped by others.
Posted by: hedgehogman | May 22, 2006 6:15 AM | Permalink to Comment