China versus India: Market ComparisonIndiaThe globalization of a business is always accompanied by a large amount of opportunities but also many risks. India and China are two very interesting countries in which to establish yourself. India became democratic after gaining independence from Britain in 1947. Since then, until the early 1990s, India has had a mixed economy, marked by numerous state-owned enterprises, central planning and subsidies . This led to a dramatic restriction of the private sector. At that time, it was very difficult for the private sector to expand because it needed government permission to do so. Sometimes companies had to wait months to get the allocation needed for normal business activities, such as increasing production or hiring a new manager. In addition, there were high import tariffs, production quotas, very strict labor laws, very restricted foreign investment and price setting by the government, rather than the market, which prevented the sector deprived of strengthening itself and was almost very difficult and unattractive for outsiders. investors to enter the Indian market. In 1991, the government recognized that it could not continue as it did and created a high-profile economic reform program. The industrial licensing system was abolished and areas reserved for state-owned enterprises were opened to the private sector. Foreign investors are also now welcome. 100 percent foreign ownership was still only permitted in certain circumstances, but foreign stakes, up to 51 percent, were permitted without any problems. In addition, raw materials and many industrial products could be imported free of charge and the maximum customs duties on imported goods were reduced by...... middle of paper ...... i would prefer to establish myself in the Indian market and for manufacturing and electrical companies, the Chinese market would probably be preferable. But given all the risks and opportunities faced by a company setting up in China or India, I would rightly prefer to set up in India. I think India's economic and political situation is much more stable than China's and the risks associated with a communist state like China, as I mentioned before, are very high. Additionally, 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 sector, as it would make it much easier for a company to enter the market. So far there is no clear winner between the two countries and at the moment it will be risky to invest in either of them..