India vs China

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Copyright 2005 by Indiana University Kelley School of Business. For reprints, call HBS Publishing at (800) 545-7685.

Business Horizons (2005) 48, 135 — 142

BH 117

Competing in the global marketplace: The case of India and ChinaB

Anshu Saran, Chiquan Guo*

Department of Management, Marketing and International Business, College of Business Administration, The University of Texas-Pan American, 1201 West University Dr., Edinburg, TX 78539-2999, USA


India; China; World economy; Manufacturing; Modernization

1. India: An untapped resource?

In an increasingly integrated global economy, the current scope and intensity of competition are unparalleled in history. In this new era of modern commerce, large corporations appreciate the meaning of globalism in that they must think and compete strategically on a global scale in order to

This manuscript was accepted under the editorship of Dennis W. Organ. * Corresponding author. E-mail addresses: (A. Saran)8 (C. Guo).




Abstract As the world economy becomes increasingly integrated and globalized, U.S. companies face unprecedented opportunity, as well as challenge. In the global marketplace, China has made great strides in economic and commercial developments. The business community observes that China is becoming a manufacturing base for the world in providing quality products at low prices. As more business people turn their attention to China’s progress, however, they are missing out on an important part of the equation: its neighboring country, India, which may deserve more attention than it has received. In this article, we attempt to present an argument that India could be a viable alternative in competition with other countries on the world stage. In spite of its problems, the Indian government and people are determined to increase Indian contribution to the world economy. As such, India may serve as its next frontier. D 2004 Kelley School of...