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Thursday, Jan 15, 2004

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China economy

This is with reference to "It makes economic sense to cosy up to China" (Business Line, January 14). With China becoming the saviour of the Japanese economy, it makes economic sense to "cosy up to it."

China is zooming ahead in all sectors of the economy, and it would be prudent for India to benefit from it. As mentioned in the article, there is likely to be great demand for automobile parts and software in China, and these are areas where India has a relative advantage. Indian firms will benefit greatly if they have closer tie-ups with their Chinese counterparts. India and China are poised to become the biggest economies of the world in the next decade or two, and hence, it is only right that there is greater co-operation between the two countries.

J. Thomas


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