Financial Times FT.com

India's prowess in services and China's manufacturing strength are complementary but both countries can also grow in sectors where they compete directly. Other nations should consider how to respond, write Edward Luce andRichard McGregor

By Edward Luce and Richard McGregor

Published: February 24 2005 02:00 | Last updated: February 24 2005 02:00

China and India, the world's two most populous countries, used to be described as giant ships passing in the night, such was the paucity of economic and other ties between the two neighbours. But they are starting to sound the foghorns as they draw closer.

Perhaps the most important shift in perception has been from the fast- growing, increasingly powerful Chinese side, which long dismissed India as being backward in contrast. Huang Jinxin, of the University of Wisconsin-Madison, recalls that standard Chinese school textbooks compared India unfavourably with China on key indicators. "Based on India's comparative experience, the Chinese concluded that development and democracy were a trade-off," she says.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this