Numbers: (20,18)

And while India and China continue to boom, their economies continue to sky rocket and disposable incomes continue to rise, its not only the two countries that are set to grow and make this the Asian Century. In their rise, India and China are leading to the prosperous rise of their neighbors _ Indonesia, Vietnam, Phillipines, BUrma, Thailand and Nepal. In a recent report by Bloomberg, Indonesian finance minister Sri Mulyani Indrawati, expressed optimism for the Indonesian economy thanks to India and China’s demand, and despite a slowdown in the American economy.

We are aiming for higher than 6.8 percent,” Finance Minister Sri Mulyani Indrawati said in an interview in Jakarta, referring to the government’s forecast for next year’s expansion. “India and China will be quite strong in actually pulling growth in the region.”

Indonesia’s economy,

  (more…)

Numbers:(1.06,1.06)

Recruiting the right talent is every becoming every HR manager’s nightmare. AS Asia faces a talent crunch in the face of growing competition, we find India might just emerge ahead of China.

A recent report by Mc Kinsey says that - India is not only producing more young professionals, it is producing better qualified ones, too. According to a survey of local recruiters, only 10 percent of China engineers have the skills necessary to work in a multinational corporation, compared to 25 percent of engineers in India. By 2008, India’s total pool of qualified graduates will be more than twice as large as China. If Indian universities continue to churn out top-notch talent, its younger, cheaper, and larger professional workforce could help India edge out its neighbor to the east.

Source: Mckinsey Global Institute

In the wake of the India’s nuclear deal, the border issue and China’s ties with Pakistan, India and China are getting ready for a new new game. Today, ending more than more than 45 years of frosty relations, the armies of India and China are holding their first joint military exercise. This is in accordance with the Memorandum of Understanding (MoU) on exchange and cooperation in the field of defence, signed between India and China in 2006.

Indian and Chinese army officers ‘hand in hand’

Although security issues do exist and both India and China view eachother with suspicion, it was nice to come across news of the two armies taking part in joint exercies aptly code named ‘exercise hand in hand’ to practice counter terrorism and counter-insurgency drills.For the Asian giants, it’s a significant event especially since the two nations are regarded as competitors if not adversaries in Asia. Led by Brigadier DS Dadwal, the 100-strong Indian army team will conduct a week-long counter-insurgency and counter-terrorism exercise along with troops of the Chinese People’s Liberation Army in the Yunnan province bordering Myanmar.

(more…)

Numbers: (”14.5″,”7″)

By Chris Devonshire-Ellis 

Our partner firm in Mumbai, Rahul Guatam Divan & Associates, has just alerted us to an improved decision in India that provides a more attractive platform for expatriates working in the country.

A Special Bench of the Income Tax Appellate Tribunal has held that taxes paid by an employer, on behalf of an employee, can be added only once in the taxable salary of an employee and thereafter, tax on such a perquisite does not need to be added again, since it is considered a non-monetary perquisite. The decision can be found here.

This new development goes against a recent decision of the Delhi Bench of the Tribunal.

Hence, for all of the expatriate clients working in India, this will have the impact of reducing their tax liability. Consequently in light of this new development, they will need to rework the tax liability for all of these expatriates to ascertain the remainder of the tax owed to the Indian Revenue Authorities.

If you require assistance with this matter please contact india@dezshira.com.

With Christmas round the corner, chocolates seem to be on everyone’s mind. Co-incidentally, India and China are the markets chocolatiers are gunning for in order to expand their markets. Chocolate is becoming the season’s case study in globalisation. A recent New York Times report says “Swiss chocolatiers, having long ago conquered markets in Europe and North America, are now aiming at the vast expanses of Russia, India and China. While India’s chocolate market is estimated at $300 million, China’s chocolate market is estimated at $410 million (the second biggest in the region), a fraction of the global sales of $57 billion.
Both traditionally local sweets, non-chocolate consuming nations are now proving to have a sweeter tooth for chocolate. While the average annual chocolate consumption in China is 100-150gms, in India its 165 gms per person, contrast this with Europe where the average annual per capita chocolate consumption is frequently cited as being around 8 kilograms!

Numbers:(”6.5m”,”3.5m”)

In a recent development to strengthening bi-lateral ties in the region, the Indian government has set up a consulate general office in Guangzhou, South China. In a reciprocal measure, the Chinese government started a consulate general office in Kolkata, in East India. Both consulates have a visa, consular affairs, commerce and cultural affairs section, even as they’ve vowed to commit themselves to simplifying visa application procedures.

Both India and China are also in talks to open direct flights from Guangzhou to Kolkata in the recent future. The move comes at a time when the governments are thawing hostilities since their cold war in 1962, when Chinese and Indian consulate generals did exist in both Kolkata and Guangzhou.

The move comes at a time when India China trade is heating up. The two major port cities both have a prime role to play in India-China trade. With sea routes having taken the place of the ancient silk route, both Kolkata and Guangzhou as big, bustling port cities have a significant role to play in changing trade dynamics in the region.

(more…)