A book on the growing economic ties between India and China and its implications for the world was launched here Wednesday, aptly timed with the announcement of the BRICS bank at the 6th BRICS Summit currently underway in Brazil.
Forecasting Chinese foreign direct investment (FDI) into India to touch $30 billion by 2025, the authors of the book titled "The Silk Road Discovered" write: "We deem it entirely possible that, by 2025, the stock of Chinese FDI into India could be $30 billion, and if Chinese industrial clusters come to be established (in India), even larger."
Co-authored by Washington-based research consultancy China India Institute chairman Anil Gupta, the institute's managing partner Haiyan Wang and Singapore-based consultant Girija Pande, the book is about "Asia's best kept secret that over hundred companies each from China and India are working in each other's country", Pande said at the launch.
"Some of these companies are building very good businesses," Pande added, giving examples of Chinese telecom giants Huawei and ZTE, and of Tata Motors from India through their Jaguar Land Rover.
Both Chinese and Indian companies have entered each other's markets through third-party business acquisitions, said co-author Anil Gupta, who has travelled extensively in China.
"The corporate engagement has been both direct as well as indirect via third countries. Chinese companies are making acquisitions, for instance, in the US, while Indian companies are also going global, like the Tata Motors Jaguar Land Rover (JLR).
"JLR is the fastest growing luxury car maker in China today," Gupta said.
The Chinese investment into India will help build up infrastructure and export manufacturing, Pande said, citing Reliance Power's order of $8 billion signed with Shanghai Electric in 2010, perhaps the largest cross-border deal ever signed in the power sector worldwide.
Pande estimated India to have placed about $10 billion worth of power plant orders with Chinese manufacturers.
With a chapter on the mindset element involved in the corporate relationship, the book suggests that Indian companies need to overcome the tendency to be affected by the political aspect of the India-China relationship.
"The Chinese have the ability to separate politics from commercial issues and China has worked to build successful business relationships even with countries it has political issues with," Pande said.
"The Silk Road Rediscovered" describes how Indian and Chinese companies are becoming globally stronger by winning in each other's markets.
It looks at how India companies such as Tata Consultancy Services, Mahindra Tractors, NIIT, Tata Motors and Sundaram Fasteners have built successful businesses in China.
The book also examines how Chinese majors like Lenovo, Huawei, TBEA, Haier and Xinxing have made a strong commitment to India.