Table Of ContentChindia 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
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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)
