To learn Mandarin Chinese email learnchinese@inchincloser.com or call / whatsapp on +91 98700 90966 | REGISTER NOW
Close

You are here: Home - Blog

Blog

  • ma-modiWith most of the money pouring into start-ups across China and India drying up, investors are getting a lot more sharp edged and nickel nosed about where they put their money.

    China’s slowing economy earlier pushed several investors to India to reap rich dividends from her large population. However Chinese companies now too are second guessing putting their money into India and are rather cooling their heels even as the summer approaches.

    Several Chinese companies including Qufenqi, a student loan company owned by Alibaba which was looking at buying into an Indian student loan firm have back tracked and are no longer interested in the Indian market as of now. The only beacon on the horizon seems to be Jack Ma’s Alibaba who are keen to enter India’s burgeoning e-commerce market. India is roughly estimated to be 5 years behind that of China when it comes to the adoption and implementation of new technology. This gives Alibaba a huge head start in implementing strategy for a market similar in size and value to China, and also a great advantage in knowing where the market is headed.

    Read more

  • make-in-indiaTaking a leaf out of China’s development handbook, India launched her “Make in India” week on Monday with much fan fare. Inspired by Germany’s annual Hannover Messe, India’s Make in India week is New Delhi’s effort to bring India’s manufacturing sector on par with her services sector, generate jobs and ease imports.

    Estimated to create a 100 million jobs and increase manufacturings contribution to the national output to 25 percent from the current 17 percent, the initiative is a massive nationwide drive to boost manufacturing in India.

    China’s manufacturing sector in comparison contributes 35 percent to the GDP. Initiated in 2014, ‘Make in India’ is a flagship of the Modi regime. The main objective is to develop a Chinese-style global manufacturing and export powerhouse that will make India one of the top 50 nations in the world on the World Bank’s Ease of Business ranking.

    Currently, India stands at 130. In comparison to her sweet and sour neighbour, India’s desire to propel manufacturing comes from weak industrial data. Never a manufacturing powerhouse, India is now keen to increase factory output and industrial production. However in order to do this and bring in fresh investments, New Delhi needs to cut the proverbial red tape and lay out the red carpet instead. Like China she needs to give funds at affordable rates, offer cheap inputs and provide world-class infrastructure. In addition, she will also need to bring in technology, regulate environment norms and create skilled talent to attract both domestic and international manufacturers.

    Read more

  • oil-demandA tectonic shift is taking place between India and China and its becoming obvious by the subtle changes in oil consumption.

    According to a report by The Oxford Institute for Energy Studies this month India’s oil demand grew by 300,000 barrels a day last year, double the average rate in the previous decade while China’s growth has slowed to 300,000 barrels from an average 500,000 barrels in the decade to 2013. The shift heralds not only a change in the domestic economy with China moving higher up the value chain, becoming more conscious of her environmental footprint and increasing her services sectors, but also signals clearly that she will no longer be swayed by oil politics.

    The oligarchy of oil, means that with a drop in demand and consequently in price, China was able to alter the economies of oil producing nations such as Saudi Arabia and Iraq which gave her a foothold in international politics.

    While the shift has been gradual, the change is substantial to highlight that oil producing nations will now play into India’s hands as she holds the reigns on higher oil consumption.

    Foreseeing this is also probably why Rosneft,’ Russia’s largest oil company, has decided to sell nearly half of the largest oil deposit in Eastern Siberia to Indian investors. The company has ceded 49.9 percent of “Vankorneft” shares to a consortium of Indian public sector oil majors.

    Of these, the Oil and Natural Gas Commission (ONGC) will get 26 percent of the shares, while 23.9 percent will go to Oil India Limited (OIL), Indian Oil Corporation (IOC) and Bharat Petroleum (BPL). ‘Vankorneft’ owns a deposit with 500 million tons of oil and condensate reserves and 182 billion cubic meters of gas, reports the Rosneft press service.

    Read more

  • 20160411-xinhua-obesitychinaTheres a good reason why marathons have become a fad in China and India.

    Of late with the number of overweight people outnumbering those that are underweight worldwide, its become popular to exercise and what better way to do it then out in the open with friends? While marathons have mushroomed across South East Asia, so have crazy diet plans and the sales of sporting goods.

    This predominantly stems from the fact that people in China and India are excessively getting more obese.

    According to a study on Global Trends in Body Mass Index (BMI), published in the medical journal, Lancet, China displaced the United States as the world’s most obese country in 2014. The figures for China stood at 43.2 million obese men and 46.4 million obese women while the U.S. had 41.7 million obese men and 46.1 million obese women. A diet high on junk foods, crazy work hours, and a society that believes burgers to be cool can do that to a population.

    Read more

  • medical-tourism-in-india-swarna-18-638The Indian medical tourism industry is about see to high levels of adrenaline as patients from China increasingly look to their Southern neighbour for cheap medical drugs, high quality treatment and professional doctors.

    According to a report by the Federation of Indian Chambers of Commerce (Ficci) and KPMG accounting firm in September 2014, India has become the world’s fastest-growing medical tourism market receiving more than 230,000 medical tourism visitors, mostly from the West.

    India’s medical tourism market is expected to more than double in size from US$ 3 billion at present to around US$ 8 billion by 2020, according to a CII – Grant Thornton white paper. Almost 80 years after Dr. Kotnis went to China in a humble mission to help injured Chinese soliders, many Indian hospitals, Inchin Closer is talking to – are looking at attracting Chinese patients – especially oncology patients.

    The lure is simple, while oncology treatments costs an arm and a leg in China, the costs are substantially low in India. Take for example, in Russia heart surgery costs US$ 20,000, but it only costs US$ 6,000 in India. Prices for liver transplants in the United States are more than US$ 200,000, but only US$ 14,000 in India. Robotic knee surgery can cost up to US$ 80,000 in the Middle East and Australia, while in India for just costs US$ 10,000.

    Read more

  • File photo of a worker walking past a pile of steel pipe products at the yard of Youfa steel pipe plant in Tangshan in China's Hebei Province~ By Charmaine Mirza

    Bao Steel, China’s largest producer recently raised its steel prices for the first time in two years. The behemoth was leading the way for several Chinese steel factories who have subsequently raised prices due to a massive injection of funds into the domestic market which has spurred interim growth.

    Given that a massive over supply and softened demand in the domestic economy is generally the precursor to a crisis.  The sudden boom in global steel prices since mid-March has left several pundits scratching their heads, most of who feel it won’t last long. Steel being a tenacious topic between China and India, Inchin Closer pauses to check the ductility of the steel industry’s Asian backbone and its butterfly effect on the global economy.

    Read more

  • gst-mainIn a landmark amendment to the Indian tax regime, India’s upper house or the Rajya Sabha passed the Goods and Services Tax bill which streamlines and simplifies taxes for the entire country.

    In effect, the GST brings India, a US$2 trillion (£1.5tn) economy with 1.3 billion consumers, into a truly single market. “No country of comparable size and complexity has attempted a tax reform of this scale,” Harishankar Subramanian, of Ernst and Young told the BBC. The GST bill which had been pending in parliament for a few years, finally got passed allowing companies to regulate their taxes between India’s 29 states better.

    The new bill will upgrade India’s tax system on par with 21st Century companies needs, enabling Asia’s third largest economy a strong tax regime going forward. It will therefore ensure businesses can expand nationwide. Freight trucks will now be able to move quickly across India, rather than spending hours idling at multiple checkpoints filling in forms and making tax payments when they travel between states.

    Additionally, the overall tax rate is expected to come down, from its current rates. News reports peg the GST rate at between 15 percent and 18 percent. “If you add all the taxes together, today this is almost 27-32 percent… With GST coming in say at 18-19 percent zone… that is still a difference of 8 percent to 10 percent. Large part of that will eventually get passed on to the customer,” Ashish Goel, co-founder and CEO of online furniture retailer Urban Ladder, told NDTV Profit.

    Read more

  • Small-SUV4China’s leading carmaker SAIC Motor Corp and Great Wall Motor are eager to plot profit from India, one of the last frontiers in growth close to home.

    With rising fuel consumption, a government that is keen to build better roads and a growing population, Chinese auto makers although late entrants, are currently waiting for permissions to clear to gain access to India.

    SAIC in particular is evaluating what models to launch in India and is considering vehicles less than 4 meters in length because of favorable policies — sub-compact cars attract lower taxes.

    While India isn’t new territory for SAIC Motor Corp and Great Wall Motor – both have been trying to break into the Indian market since 2012, a slowdown in the Chinese market and successive successes by other Chinese companies in India has given them new wind behind their wings.

    Analysts believe that Gujarat, the home to General Motor’s factory will be the new base for the Chinese auto giants. The speculation is further fueled by the fact that 50 percent of GM India is owned by SAIC Motor Corp in a deal that was signed in 2009 when the Chinese government bailed GM out of a financial disaster.  Both companies are crunching numbers on India’s SUV industry specifically as the segment is expected to grow exponentially.

    As a percentage of total sales, SUV’s have grown to more than 30 percent of the total luxury vehicles sold in India. Companies say in a diverse market like India, which has one of the most challenging road conditions, these all-wheel-driven SUVs become the first choice for the rich because they offer both functionality and comfort.

    Read more

  • ~ by Charmaine Mirza

    India Inc. is reeling in the wake of the recent dismissal of Cyrus Mistry’s dismissal as CEO of Tata Sons, the promoter company of the Tata Group. The subsequent fracas between Ratan Tata and Cyrus Mistry that has ensued has raised many questions (and eyebrows). But the question that Inchin Closer is asking is if this will have an impact on the Tata Group’s interests in China. If so, which way will the balance tilt?

    • Cyrus Mistry was bullish on China as a market for future growth.
    • But the fact remains that the initial roots for the Tata companies’ businesses in China were already sown prior to him taking over.
    • There were also strategic alliances between the Tata Group and some provinces in China who foundations had already been laid under Ratan Tata’s stewardship.

    Read more

  • Indian & Chinese travellers ~ By Charmaine Mirza

    The verdict is in – the Asian cocoon has been shattered and Chinese and Indian travelers are taking wing! As they pole vault across the globe, they are ruthlessly outstripping their Western counterparts, to become the world’s next travel titans.

    The recent investment made by Ctrip of China into MakeMyTrip of India, only lends more credence to this fact. From Iceland to Peru, to Bora Bora – these are the new frontiers for Asia’s travelati. Perennial favourites like South East Asia won’t go away, but Asian travelers are increasingly adventurous to go that extra mile – and spend that extra buck. Everyone wants a piece of the outbound Chinese travel pie – and why not, given that its growth is practically exponential.

    Read more

Back to top