Chindia Rising: How China and India Will Benefit Your Business PDF
Preview Chindia Rising: How China and India Will Benefit Your Business
Chindia Rising How China and India will Benefi t Your Business Chindia Rising How China and India will Benefi t Your Business Jagdish N Sheth Kellstadt Professor of Marketing Goizueta Business School Emory University, Atlanta, USA Tata McGraw-Hill Publishing Company Limited NEW DELHI McGraw-Hill Offi ces New Delhi New York St Louis San Francisco Auckland Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal San Juan Santiago Singapore Sydney Tokyo Toronto TataMcGraw-Hill Published by Tata McGraw-Hill Publishing Company Limited, 7 West Patel Nagar, New Delhi 110 008. Copyright © 2008 by Jagdish N Sheth For sale in India, the Indian Subcontinent and Asia This edition can be exported from India only by the publishers, Tata McGraw-Hill Publishing Company Limited. ISBN 13: 978-0-07-065708-3 ISBN 10: 0-07-065708-4 Managing Director: Ajay Shukla Head—Professional and Healthcare: Roystan La’Porte Publishing Manager: R Chandra Sekhar Asst. Manager—Production: Sohan Gaur Manager—Sales & Marketing: S Girish Controller—Production: Rajender P Ghansela Asst. General Manager—Production: B L Dogra Information contained in this work has been obtained by Tata McGraw-Hill, from sources believed to be reliable. However, neither Tata McGraw-Hill nor its authors guarantee the accuracy or completeness of any information published herein, and neither Tata McGraw-Hill nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that Tata McGraw-Hill and its authors are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought. Published by Tata McGraw-Hill Publishing Company Limited, 7 West Patel Nagar, New Delhi 110 008, typeset at Bukprint India, B-180A, Guru Nanak Pura, Laxmi Nagar, Delhi 110 092 and printed at Gopsons Papers Ltd., A-2 & 3, Sector 64, NOIDA 201 301 Cover Designer: Kapil Gupta Cover Printer: Gopsons Papers Ltd. RAZYCDLYRQDCA To Jairam Ramesh, who coined Chindia Minister of State for Commerce (Government of India) and Economic Advisor to Congress (I) Party Advance Praise Eye opener! Shifted my thinking about China and India’s global impact. Philip Kotler, Ph D S. C. Johnson Distinguished Professor of International Marketing Marketing Department Kellogg School of Management Northwestern University Prof. Jagdish Sheth does it again. He distills the implications of the growth of China and India through a wide ranging and thoughtful interpretation in Chindia Rising and its implications to global growth, prosperity, security and culture. A must read for all managers, politicians and security experts. C.K. Prahalad Paul and Ruth McCracken Distinguished University Professor, Ross School of Business The University of Michigan Business leaders in East and West will surely read with interest Jagdish Sheth’s thought provoking assessment of how the rise of China and India (Chindia) will prove to be an enormous boon to the worldwide economy. With his profound insight into global business trends, Prof. Sheth shows how Chindia’s rise will not only stimulate the mature economies of the West but will also help birth economies in Asia, Africa, and Latin America. Azim Premji Chairman and Managing Director Wipro, Ltd. The rise of China and India will have a profound effect on businesses in the developed as well as the developing world. Any businessman who wants to be ready to benefi t from these dramatic changes should read Dr Sheth’s insightful book. Patrick J. McGovern Founder and Chairman International Data Group viii Advance Praise With detailed analyses of companies, economic trends, and historical patterns, the noted business management scholar, Prof. Sheth convincingly suggests that the rise of China and India as 21st century global powers can be as benefi cial to the world as was the rise of the US in the early 20th century. This is a useful source for not only business leaders but anyone interested in this tectonic shift that is underway in the world today. Dr Vishakha N. Desai President Asia Society Jag Sheth has produced a thought provoking treatise on contemporary events involving China and India, which will have a major impact in the foreseeable future. India and China are the key players in globalization, that is changing the face of Asia, while transforming trade and commerce in the rest of the world. Sheth propounds an extremely well reasoned point of view of these developments, which will appeal to a wide cross section of readers around the world. Ashok Ganguly Chairman Firstsource Solutions & ABP Group While there have been many paens sung to the phenomenal rise of Chindia (and BRIC’s), by relating this rise contextually to US and European Economic and Commercial history, Jagdish Sheth has done us all a favor. This book not only makes it easier for us contextually, but also gives us insights into the huge challenges and exciting opportunities for the world. Finally, how Chindia affects the world will depend upon the qualities of the institutions they build. These will refl ect their society, culture, aspirations and impact they wish to have on the world. This book gives us the fi rst insights into some of the thinking in that direction. Gautam Thapar Chairman and CEO Avantha Group Many articles and books have been written in the recent past on China and India, and their economic models and future. I fi nd Prof. Jagdish Sheth’s book Chindia Rising as a brilliant analysis of not only how China and India will occupy the prime position as two great economies in the future, but how they are different from economies that became success Advance Praise ix stories. Indeed in the 19th and 20th Century, Europe and U.S. were the main players, and later Japan and Korea, each followed a model based on their culture, resources, and markets. Both India and China are operating in a new environment, where capital is not scarce, entrepreneurship is a winner, globalization and communications is a reality for future growth, and we have abundance of bright human resources and huge domestic markets. These observations, and particularly the analysis of the differences between Western economies and Chindia, with enumerable examples, reads like a well researched case study; and certainly makes Prof. Sheth’s book a ‘Must Read’ for all professional managers, entrepreneurs, economists, policy makers, and public at large. I thoroughly enjoyed reading the manuscript, and am grateful to Prof. Sheth for honoring me by sending me the manuscript before publication of this future best seller. Suman Sinha Chairman Bata India Ltd. Chindia Rising is a visionary work encompassing multiplicity of dimensions of the unprecedented impact and infl uence of the two great nations, India and China, on the world’s industrial, business and also political future of few hundred years. The book is destined to become a milestone and extensively studied by scholars, infl uencers of the international industrial scene and general public. Dr Sheth reminds the global business community of the fundamental signifi cance of the economic rise of China and India. With his typical acuity, he sees beyond the temporary dislocations caused by outsourcing or trade imbalances and discovers a future of worldwide economic growth, job creation, and expanding opportunity. I strongly recommend this book to scholars, students, international business leaders and general readers. Dr KRS Murthy CEO and Vice Chairman of the Board SUNrgi—Power of 1000 Suns The Chindia phenomena is at its nascent stage. The world hasn’t seen anything like it. The book comes at an appropriate time and evaluates the subject holistically. The large domestic market, the huge, young and growing population, the realization of the future imperatives by the respective governments, the compulsions of multinationals and the rise of private enterprise all are working in favor of China and India. The book will enable both governments and enterprises to think about the x Advance Praise challenges of becoming a dominant global force, employability of the youth, issues preventing the rural-urban divide, sustainability, collaborative energy, security, patents and IPR issues. Every citizen of the world must read it. Rajeev Karwal Founder Director MILAGROW What indeed jumps out is the new fi rst generation companies emerging from China and India who are now global players. The sheer scale of Brownian movement of entrepreneurs in both the countries is moving the two global economies to operate globally; reading Chindia Rising is like reading a business thriller. Sudhir Sethi Founding Chairman & Managing Director IDG Ventures India Bangalore, India So appropriate is the name of this book, Chindia Rising. I have focused and worked within the Indian and Chinese business communities for three decades, and I have personally seen the growth and the positioning of “Chindia” to accelerate far beyond the expectations of the global community. Dr Sheth continues to identify trends in the global economic landscape and so astutely explains how those trends impact our daily lives. I predict that this book will become a best seller and will continue the signifi cant success that Dr Sheth has had within the global economic spectrum. Dr Sheth so clearly explains this trend of Chindia Rising that a reader can grasp the enormity of this trend while reading his book. Kenneth A. Cutshaw Honorary Consul of India Business Executive and Global Attorney Foreword I am delighted to write this foreword to an important book on a subject that has long interested me. It was in May 2005 that I fi rst put forth the idea of Chindia to capture pithily the re-emergence of the two Himalayan demographic neighbors as economic powers in the world. My idea of using the term Chindia was also to convey the idea of China and India, not China or India, since I have always believed that engagement, not confrontation is the destiny of the two ancient civilizations and modern nation-states. The rise of China and India (Chindia) is not only inevitable but will be benefi cial to the world. Advanced economies of United States, European Union, Japan, South Korea, as well as Canada, Australia and Singapore, will benefi t through actively participating in the growth of consumer markets in China and India through organized retailing and services including mobile phones, hotels, consumer fi nance, as well as healthcare and education. Advanced countries will also benefi t by investing in their manufacturing, especially automobiles and appliances, and in infrastructure industries including airports, seaports, roads, electricity and other utilities. At the same time, both China and India are becoming globally integrated economies through economic reforms and government incentives. Although China’s economic integration with the world has been through trade, similar to that of Japan and South Korea, India’s global integration is more likely to be through large acquisitions of many mature industries of advanced economies. Examples include the recent large scale acquisitions of Corus Steel and Tetley Tea by the Tata Group in the U.K., as well as acquisition of Novelis by Hindalco (an Aditya Birla Group company) in the United States; and of course, this extends to worldwide acquisitions by Ranbaxy and Dr. Reddy’s in the pharmaceutical industry, and by Wipro, Infosys and TCS in the engineering, IT and consulting services industries. These acquisitions are primarily for future growth of Indian enterprises and, therefore, they will revitalize mature companies and industries of advancedcountries. Also, they will transform Indian companies from export oriented ethnocentric corporations to large transnational corporations whose capital and talent will be of global origin and not just Indian origin. xii Foreword I believe even bigger benefi ciaries of the Rise of Chindia will be other emerging economies in Africa, Caribbean, Latin America, Southeast Asia, Central Asia, Eastern Europe and virtually the rest of the world. Both nations will, through trade and investments, speed up rapid development of emerging nations more through economic partnership and less on geopolitical ideologies. Chindia needs their industrial and agricultural resources and they need Chindia’s technical and professional talent. It is also inevitable that as China and India march toward becoming global economic powers through trade and investments, their cultural and political infl uence will also rise. In other words, just as we have experienced the Westernization of heritage-rich China and India, we will also experience the Easternization of the world in fi ne arts, literature, foods, fashion and more importantly, in the rich spiritual and philosophical traditions of China and India that have drawn from each other I felt privileged when Prof. Jagdish Sheth asked me to write this foreword. I had, of course, heard and read about him for long but we became good friends beginning October 2002 when I was invited by Emory University in Atlanta, GA, as a Claus Halle Fellow. I am also pleased to see that the concept of Chindia has now become mainstream both on Wall Street and on Main Street and that, for the most part, the intellectual property rights for the term are respected!! My best wishes! Jairam Ramesh Minister of State for Commerce Government of India Author of Making Sense of Chindia: Refl ections on China and India (India Research Press, New Delhi; May 2005)
The list of books you might like
