China vs. India: Market ComparisonIndiaThe globalization of a company always brings with it many opportunities, but also many risks. India and China are both very interesting countries to move to. India became democratic after gaining independence from Britain in 1947. From then until the early 1990s, India had a mixed economy, characterized by many state-owned enterprises, central planning and subsidies. This has led to a dramatic shrinkage of the private sector. During this time it was really difficult for the private sector to expand because it needed permission from the government to do so. Companies sometimes had to wait months to get compensation for normal business activities such as expanding production or hiring a new director. In addition, high import tariffs, production quotas, very strict labor laws, severely limited foreign investment, and price setting by the government, rather than the market, have made it impossible for the private sector to become stronger and almost very difficult and unattractive for foreigners. investors to enter the Indian market. In 1991, the government recognized that it could not continue like this and created an ambitious program of economic reforms. The industrial licensing system was abolished and areas reserved for state-owned companies were opened to the private sector. Foreign investors are also now welcome. 100% foreign ownership was still permitted only in certain circumstances, but foreign shareholdings, up to 51%, were permitted without issue. Furthermore, raw materials and many industrial goods could be imported for free and the maximum tariff for imported goods was reduced by... middle of paper... would prefer to move to the Indian market and for manufacturing and electrical activities the Chinese market would probably preferable. But considering all the risks and opportunities facing a company moving to China or India, I would rather move to India. I think that India's economic and political situation is much more stable than China's and that the risks posed by a communist state like China, as I said before, are very high. Furthermore, India offers highly skilled labor at low prices and among the middle classes, English is the working language, so language barriers are avoided. This is especially true in the IT industry as this would make it much easier for a company to enter the market. So far there is no clear winner between the two countries and investing in either of them would be a risk at the moment.