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Good Afternoon friends!!! The topic for today's group discussion isIs China a threat to Indian Market???

Presenting my views on this topic, I would say that yes, it's been a constant co ncern that China will soon affect Indian Market adversely pertaining to the heav y import of cheap Chinese products in India, a country, where most of the people are below poverty line and due to these heavy imports, Indian small scale indus tries being badly hit. But I firmly believe that still China is not a threat to our market. Rather, it can be viewed as an opportunity for us. Instead of considering China as a sole competitor, we can think of it as a poten tial partner.

If asked about my views on how it can be an opportunity for IndiaI would suggest that first, we should be out of the mindset of "Save Us from Chi na" type campaign or the panic which we feel regarding China. So, I would first like to throw some light on the problems that Chinese economy is also facing from: First of all, its economy is export dependent which was badly hit during the rec ession period. Secondly, the scarcity of middle managers in China And most importantly, the poor farming families moving to unprepared cities whic h don't have enough jobs or opportunities to support them. Now, on our strong points: large consumer and industrial market strong base thirst for the new products Our businesses have fully developed management processes. Our globally competitive industries- Wipro, Reliance, Infosys, Bharti,ICICI, Tat a Motors, Ranbaxy are in no way inferior. MOreover, our success is market induced i.e driven by market forces where as Chi nese success is state induced. A can- do-attitude Low cost competitors are not new. History says, Taiwan, Phillipines, Hong KOng h ad been in game for over forty years. But how China got on top of all of them?? The answer is simple- they changed-they grabbed new technology and transformed t hemselves emerging stronger than before. so, the time is to change ourselves- our thinking- it's time for us to think of CHina beyond just a competitor. We have to think of it as a potential partner or an outsourcing option. The market of China is estimated to be four times that of Indian market and domi nated by MNC's open to direct investment. opens a way to Indian firms which are no less than China in terms of their expe rtise or performance

So, rather than considering it to be a classic case of glass either half empty o r half full, ie taking it to be as a competitor, it can be a partner. So, instead of lamenting about it and feeling victimised, we should be excited t o conquer the challenges it presents. cost- reduce the cost of production not by just 5 to 10% but by 20-30% Quality- we complain products are of cheap quality but its not that Chinese peop le only manufacture cheap quality products, they produce products to match any p rice and what we happen to see is just one of those low priced cheap quality pro duct. Now, the next sentence might act as an eye opener- they can produce excellent qu ality products. Service-It is the easiest advantage to exploit. China is thousands of miles away from most developed markets. But still they manage to get new customers, give t hem good service and retain them. McKinsey analysis finds that rising demand in India, together with the multinati onals desire to diversify their production to include low-cost plants in countrie s other than China, could together help India s manufacturing sector to grow sixfo ld by 2025, to $1 trillion, while creating up to 90 million domestic jobs. IF India s manufacturing sector realized its full potential, it could generate 25 to 30 percent of GDP by 2025, thus propelling the country into the manufacturing big leagues, along with China, Germany, Japan, and the United States. To bolster the image of the Indian manufacturing industry, another key area of f ocus must be innovation and R&D (research and development). "Innovation and R&D will help increase product offerings, raising competitiveness and enhancing effi ciency. They also help in increasing productivity and lower production costs in a manufacturing set up, Instances of benchmark Democracy No labour laws TQM methodologies