The Salute says it all

When India's Defense Minister Pranab Mukherjee signed a MoU with Chinese counterpart General Cao Gangchuan, history was being rewritten. We were again trusting the same old neighbour who peeks inside the glass house and attacks when you are asleep. Was it a good move or should a sceptic raise his voice. Only time will tell.
But the big picture of Hindi-Chini bhai bhai should be put into perspective. Future planing should drive present actions. And so should it be. The relationship between the two countries has improved over the past years because of the rosy place they now occupy on the world map2. They are pinned down to be the twin engines of growth by our Union Commerce and Industry Minister Kamal Nath. But the Engines need to be synchronised and with India's trade with China soaring from well below $1Billion a decade ago to $18.7 Billion, now things are chugging along. For Global players, the question is no longer, 'India or China?' You have to be in both," says Meera Shankar, Indian Ambassador to Germany.

So, How do the two nations stack up.
SWOT: The Big Picture (Indian Perspective)

Strength
-India has a better regulatory Environment and stronger financial system.
-India with average age of 24 years against China's 32 years, is younger.
-India has better corporate governance and offers better returns on investments.
-India has better pool of English-speaking workers.
Strong services Industry.

Weakness
-China's GDP per Capita is now 2.2 times higher than India's in Dollar terms.
-China has moved ahead of India in all social indicators.
-China's strong physical infrastructure gives it a substantial cost advantage over India.
-Infrastructure has made china a more attractive destination for investors.

Opportunities
-India is promoting private and foreign investments in more sectors.
-Given the high levels of foreign investments already, China is likely to see its investment ratio decline.
-India is more advanced in institutional infrastructure.
-India's financial market is strong, while chinese banks are burdened with bad loans.

Threats
-The chinese economy is much more integrated with the world econmy through international trade and investment.
-Manufacturing sectors share in GDP in china is around 35%(India's 16%).
-China has good number of "Closet billionaires" who can bring much more to the already booming economy.
Courtesy by :- Outlook Business (5 June 2006)

Add to this, by 2020, India will be youngest country in the world with around 547 million people below the age of 25. Also, many global economists believe that china will grow old before it becomes rich. But growing and reaping is a different ball game altogether. Let's see what is more delicious. Serving Indian curries or Making Chinese noodles.