" (Veeramani, 2004)

Stated as contributors to the export success of China are those as follows:

1) Favorable exchange rate;

2) Low wages;

3) Availability of labor;

4) Large domestic market;

5) Huge volume FDI inflows etc. (Veeramani, 2004)

India is not far behind except the gap existing in the FDI volume into China and India, which remains a large gap. The FDI for India has been of much less importance as compared to China except in view of information technology. Sinha (2007) states: "In short, while the multinationals mostly engage in the export activities with China, they target the domestic markets in India." (Sinha, 2007) the following chart shows that China is 'above average' in goods while India is 'above average' in services.

Source: India and China's Developmental Paths (2008)

The differentiations of multinational behavior likely include "the relatively high trade barriers in India (which encourages market seeking FDI)...
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