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Business Opportunities

June 9th, 2010

Business Opportunities

Laxmi Devi/ PTI / Macau hong KongJune 11 2009 13:42 IST

The global financial crisis can be turned into a great opportunity for growth in India and China if the two Asian giants join hands to collaborate in five key sectors such as gems and jewellery says a FicciKPMG report.

The report which will be presented at the Fifth FicciIIFA Global Business Forum meeting tomorrow in Macau highlights opportunities for collaboration for the two countries in gems and India’s and Chinese jewellery media and entertainment luxury brands health and wellness and tourism.

“India one of the world’s largest diamondprocessing hub can prove to be a favorable retail destination for the gems and wholesale jewellery sector for Chinese suppliers considering the 100 per cent Foreign Direct Investment FDI allowance” the report ‘Global Financial Meltdown: Turning crisis into opportunity through enhanced cooperation between India and China’ said.

While China the largest consumer of jewellery can provide new avenues for Indian firms to commence operations of cutting and polishing units it said adding that India’s gems and jewellery industry is expected to touch 25 billion dollars by 2011 from 16.1 billion dollars in 2008.
The report comes at a time when both India and China are emerging as global economic powers and cooperation and collaboration augurs well for not only for the two countries but for the whole of Asia and the world” said K K Modi former Ficci President and Chairman of IndiaChina Joint Business Council and Modi Enterprises.

According to the report Indian companies can offer services to Chinese suppliers and online gaming industry whereas relaxed FDI norms can provide opportunity for Chinese firms to enter the Indian entertainment market.

It also noted that “luxury goods industry of both China and India is estimated to grow by 2030 per cent in the next 5 years. There is enough potential for Chinese luxury hotels to enter into India”.

Besides the two countries can also explore through joint ventures in health and wellness sector especially in traditional healing and herbal treatments.

Players like Apollo Hospitals Fortis Healthcare Wockhardt Hospitals have immense opportunity to begin their operations in China it said.

In the tourism sector the FicciKPMG report said that India’s emergence as a medical tourism destination for international travelers presents an attractive proposition for the healthconscious Chinese traveler.

“The opening of the third border pass between China and India could become a gateway for IndiaChina tourism from Tibet to Sikkim and viceversa” it noted.

By 2011 when Nathu La is scheduled to be open for tourism more than 300000 Chinese are expected to travel through the mountain passes.

About the writer: China buyer’s agent. China sourcing agent.