Dragon's sprint makes it attractive

NEW DELHI: Why has China been more successful than India in attracting foreign investments and inking trade pacts with other countries? Trade partners believe that it is China’s long-term policy perspective, willingness to get things done fast, perseverance and the importance that it accords to infrastructure which has given the country its winning edge.

In a session on ‘India’s commercial diplomacy: which path to pursue’ at the India Economic Summit organised by CII, government and industry representatives from Sri Lanka, Pakistan and Australia listed out attributes which made China more successful than India in its international trade diplomacy.

According to Sri Lankan minister of enterprise development and investment promotion Rohitha Bogollagama, China makes things happen faster than India. “What the Chinese say, they make it happen. It is easier to trade with China,” he said. China’s clarity about broad political issues and long-term policies also plays a role in making it a more attractive trade and investment partner than India, the Sri Lankan minister said.

Taking Mr Bogollagama’s point ahead, Pakistani minister of state for finance Omar Ayub Khan said that when China decided to liberalise, it settled all outstanding disputes so that there were no impediments in the path of trade. “Border disputes between India and Pakistan have to be settled for trade to flow. India must address the Kashmir issue head on,” he said.

According to Australian Industry Group chief executive officer Heather M Ridout, China’s patience in working out trade deals and the value that it accords to engaging with trade partners is key to its success. China is engaged in free trade agreement talks with India without the WTO granting it market economy status.

Ms Ridout said that with patience China has sorted out a lot of problems including those related to anti-dumping. “China is working out messy contracts in gas with Australia. It surely knows what it wants,” she said.

China’s heavy investment in infrastructure in the eighties has given the country a head-start over India, feels Rajat M Nag, director general, Southeast Asia department, ADB. “India has to recognise its infrastructure deficit and invest heavily in infrastructure,” he said.