Electrical & Electronic Industry: India vs China

It's  widely acknowledged that China has outperformed India in every respect and glimmer of hope is left for catching up in the coming future. It is a consensus that china's industrial performance is superior to India, and immense difference in development procedure. If we talk about Electrical & Electronic Industry, both the countries were backward in technology and lagged behind western countries. It is a well-known fact that Chinese indigenous companies have grown stupendously in comparison to those of India. Both the countries have been developing magnificently after globalization and under economic liberalization. Expansion & prosperity of electrical & electronic industry vary considerably in two countries because China has paid much attention to the electrical & electronic industry where as India has shed focus on the development of IT (Information Technology) enabled services & software

 

Indian domestic electrical & electronic companies have faced fierce competition with global companies after complete liberalization, meanwhile things are different in China, Its local companies have managed tactfully technological shortfall and realized spectacular growth, though it has lacked in technological sophistication. Tremendous competition between India and China is a chief instrument in the growth and development of the industry.

 

Casting view on the market structure of China and India is important in order to find out the disparity. In China, there is a cut throat competition among the companies in terms of technological potential that has helped them in building their own bran values and expanding their market share against the global nationals. Whereas in India, there have been a few key domestic companies which have captured the market but after economic liberalization, international companies have overshadowed the local companies, because they have sophisticated & advanced technology, and have taken over the market share.

 

In spite of giant stride in economy of both the countries, there is a disparity in development mechanism of industrial structure, in China, economic reformation & liberalization and open door policy took place prior to those in India. Electrical & electronic industry has evolved in one of the key industries in China and has grown by a factor of three every five years, from 6.85 percent in 1985 to 12.88 percent 2005. In contrast, electrical & electronic industry in India has not thrived as fast as compared to China, risen from 5.16 percent in 1980/81 to 6.02 percent in 2005/06. The problem in Indian is that there was no a healthy competition among Indian counterparts that led the industry to a stagnant state. The influence of competition has not appeared in the Indian market as happened in China. The size of Indian electrical & electronic goods market is half in size, though it has a large population and market size has turned out to be obstruction on the growth of new local companies.