It is great to see the Tata Group of India venturing out to acquire the Corus Steel Company from its Dutch owners, thus consolidating steel production in the hands of 2 Indian groups, the Mittals and the Tatas. This is a very strategic move for India as it will dominate the supply of one of the most important materials for infrastructure building throughout the world. I am sure the Tatas had their eyes on the vast market shaping up to the east, China. China is undergoing a constant and continuous expansion of its economy and is poised to consume more oil, energy, steel and coal in its nation building. The two Indian steel empires are well positioned to take advantage of this and increase their business and profits.
This brings to mind the expansion in economic development taking place in India itself, fueled by the IT boom. The revenues it is receiving from software exports and outsourcing is boosting its foreign exchange reserves. India and China have amassed huge reserves and are cleverly using them to undertake rapid expansion of infrastructure and production facilities for various manufacturing industries.
They are going to overtake the developed economies like Japan, France and Germany soon, proving to the world that the East is rising and is here to stay and grow. In this context, it is interesting to note the geographical location of India and China in Asia. India is in the middle and China is in the east end. Is not correct then to say that they are going to be the real Middle and East of the future. I have always wondered why the Arab countries of Asia are called the Middle East when they are located at the western most end of Asia.
Anyway, if the present Middle East with its vast oil/energy sources and the real Middle (India) with its huge professional/managerial talent and business acumen and the East (China) with its enormous appetite and market join together, they would soon be an unbeatable combination and front to challenge the Western world for economic prominence and dominance.
I hope the leaders of China, India, Iran, UAE and Saudi Arabia, the real players in Asia, take a note of these developments and opportunities and work together to develop Asia as the future economic superpower it should be. I also think this is the right time for a new economic group of all Asian Nations is to be established by the leaders of China and India to realize this potential
Will the Elephant and the Dragon dance together soon?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment