Dragon vs Tiger- Emergence as a global

leader

Presented by
Naganathan.R
MBA
SAVEETHA
MANAGEMEN
T SCHOOL
 Contents
• China and India- Economies at a glance
• China and India: emerging global economic
players
• Sino-Indian relationship
• Military might of India and China
• Strengths and Lessons of India and China
• CHINDIA‘S Pre-conditions for a peaceful
global power transition.
• Conclusion
 Sino-Indian relationship
• Relations between China and India date back to
ancient times. China and India are two of the world’s
oldest civilizations and have coexisted in peace for
millennia.  Trade relations via the Silk Road acted as
economic contact between the two regions.
Sino-Indian relationship- Some milestones
• In April 1954, India and the PRC signed an eight-year agreement on Tibet
that set forth the basis of their relationship in the form of the Five
Principles of Peaceful Coexistence (or Panch Shila).
• October 20- 21 November 1962, War intensifies between PRC and INDIA.
• India and the PRC renewed efforts to improve relations after the Soviet
Union invaded Afghanistan in December 1979. 
• In 1984, squads of Indian soldiers began actively patrolling the Sumdorong
Chu Valley in Arunachal Pradesh.
• in July 1994, the two sides agreed that border problems should be
resolved peacefully through "mutual understanding and concessions." 
• In October 2009, Asian Development Bank formally
acknowledging Arunachal Pradesh as part of India, approved a loan to
India for a development project there.
Military might of India and China
Capabilities CHINA INDIA

Total Population 1,330,044,544 1,147,995,904

Military Manpower
729,323,673 584,141,225
Available
Reaching Military Age
20,470,412 22,229,373
Yearly
Active Military
2,255,000 1,325,000
Personnel
Active Military
800,000 1,155,000
Reserves
Active Paramilitary 3,969,000 1,293,300
Total Air-Based
1,900 1,007
Weapons
Total Land-Based
31,300 10,340
Weapons
Total Naval Units 760 143
 Capabilities CHINA INDIA
Towed Artillery
14,000 4,175
Systems
Merchant Marine
1,822 501
Strength
Major Ports and
8 9
Terminals
Aircraft Carriers 1 1
Destroyers 21 8
Frigates 42 16
Submarines 68 18
Patrol Coastal Craft 368 43
Mine Warfare Craft 39 12
Amphibious Operations
121 7
Craft
Defense Budget /
$59,000,000,000 $32,350,000,000
Expenditure
 Very high economic growth, large internal
market
 Very high savings and investment rate
 Excellent at tapping into global knowledge
through direct foreign investment and
Chinese Diaspora
 Becoming world’s manufacturing base
 Very large supply of excess labor will continue
to give it low wage advantage
 But moving rapidly up value chain from labor
intensive to more technology intensive exports
 Efficient export trade logistics
 Critical mass in R&D is beginning to be
deployed to increase competitiveness
 Strong investments in education and training ©cjd
 Jumped from traditional rate of 2-3% growth
in past decades to 6-8% last decade
 Strong science and engineering capabilities
centered in chemical and software areas
 Is becoming worlds service center for
software development and back office
offshore outsourcing
 Is also becoming center for contract
innovation work for multinational companies
 Has large critical mass of educated, skilled,
and English speaking knowledge workers and
can increase this stock
 Has network of successful Indians in US and
Europe providing links to markets,
technology, and finance
 Relatively deep financial markets
 Is strengthening export orientation, and
seeking strategic alliances, but strength is
limited more to intangible trade rather than
tangibles trade because of high infrastructure
and regulatory costs
©cjd
 Importance of nation state in
 developing long term strategy for country,
 providing stable macroeconomic framework,
 pragmatism in transition to market economy
 developing an institutional means for development to take place
 focusing for several decades on the importance of education and
science and technology
 Importance of integration to world economy and of trade in goods
as engine of growth
 Very effective use of direct foreign investment to move up
technology ladder
 Strong investments in human capital as fundamental step to make
the transition
 Effective use of Chinese Diaspora in high tech parks and to bring in
technology and access to markets

©cjd
Importance of investments in high level
technical, scientific, and managerial capital
through network of Indian Institutes of
Technology and Indian Management Institutes
Importance of turning brain drain to brain gain
by harnessing Indian Diaspora in global high
tech industry
Importance of moving from self-reliance to
greater international integration to accelerate
and sustain growth
Importance of improving the whole legal and
regulatory environment to stimulate greater
innovation and get more out of growing critical
mass of resources allocated to R&D
Importance of tackling necessary reforms in ©cjd
regulatory regime and improving infrastructure
 PRE-CONDITIONS FOR A
PEACEFUL GLOBAL POWER
TRANSITION
• Much of China ‘s dazzling
new infrastructure was
built in the late 1990s , and
India is gearing up to the
repeat that performance in
the latter part of this
decade .
• Foreign inflows into
China jumped
substantially in the early
1990s ,and those into India
have ,as was to be
expected, jumped in the
• Good education and
health facilities are
necessary for inclusive
development they are
state subjects in India ,in
china also , local
government has a large
share of the responsibility
for their provision.

• The Chinese culture is

more homogenous , while
India has greater
diversity.

• India's greater expertise

with market also shows in
• The two countries can develop similar
position on international negotiations to
counter pressure from lobbies that would
make developing countries bear much of the
cost of moderating the climate change
created by current develop nations.
• At the same time , promoting technology
and renewable energy based solutions will
mitigate the need for intense future
competition over China

• The moment we realize the tusker nature of

INDIA, we would have a better prospective
over the mythical dragon.