By M.R. Narayan Swamy, IANS
Beijing : Indian and Chinese business leaders should develop “a strategic plan” to strengthen business alliances and collaboration to turn the two countries into the world’s dominant economic powers, Prime Minister Manmohan Singh said Monday.
“I would suggest a three-pronged strategy for the chambers of industry and commerce of both countries to achieve these objectives,” the prime minister told the India-China Economic Trade and Investment Summit here, unveiling his economic vision for the Asian giants.
“Firstly, you should jointly develop a strategic plan for the future so that you have a vision of our economic cooperation and a road map for its implementation,” he said in his speech to a large audience that included China’s Vice Premier Hui Liangyu.
“This,” he added, “will ensure that a long-term strategic perspective that looks ahead to future challenges and opportunities guides our ties.”
Manmohan Singh, who flew into Beijing Sunday morning on a three-day visit to China, said business leaders from the two countries could develop profitable business models that factor “in our complementarities and competitive strengths and the special needs of large markets like ours. The opportunities are many and innovation is the key to exploiting them”.
“Lastly but equally importantly, you need to acquire insights into each other’s markets, business customs and management styles,” India’s economist-turned-prime minister said.
“In the final analysis, doing business is about developing understanding and trust in your partners.
“Additionally, the business communities of our two countries should develop a deeper understanding of the macro-economic outlook, the regulatory regimes and of factors that have a bearing on the competitiveness of enterprises,” he said.
Manmohan Singh, a strong advocate of close Sino-Indian economic ties, said that as the 21st century unfolded, “both India and China stand poised to regain their weight in the global economy”.
Bilateral trade, he pointed out, had doubled in the last two years.
“Our trade target of $20 billion by 2008 was reached two years ahead of schedule. The revised target of $40 billion by 2010 is also likely to be achieved two years ahead of schedule,” Manmohan Singh said.
He said India needed to diversify its export basket to China by vigorously pursuing opportunities to expand non-traditional items of export. When matched by greater market access for Indian goods in China, this would help bridge the rising trade deficit between the two countries.
India could also supply quality agricultural and marine products to the Chinese market, he added. The two governments also needed to work together to remove administrative barriers and simplify regulatory regimes to move forward in areas such as construction and engineering, education, entertainment, financial services, IT and IT enabled services, transport, tourism and health.
The prime minister added: “We must strengthen the base of our economic cooperation through business alliances and collaboration in technology transfer and development. We seek to promote bilateral investments in traditional sectors such as petrochemicals, steel, healthcare, IT and automobiles.
“Equally, our entrepreneurs should explore opportunities in new areas such as biotechnology, advanced materials, renewable energy and low carbon technologies.”
“India and China working together,” he said, “should develop a habit of mutually advantageous cooperation.”
“Our two countries will need to work together to ensure that we contribute to, even as we benefit from, the economic resurgence and integration of Asia. Our two economies are becoming engines of economic growth and must use our natural and human resources, technology and capital for the common benefit of the region.”