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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 Ficci-KPMG report.
The report, which will be presented at the Fifth Ficci-IIFA Global Business Forum meeting on Friday in Macau, highlights opportunities for collaboration for the two countries in gems and jewellery, media and entertainment, luxury brands, health and wellness and tourism.
"India, one of the world's largest diamond-processing hub, can prove to be a favourable retail destination for the gems and jewellery sector for Chinese companies 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 jade, emerald and pearl 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 by 2011 from $16.1 billion 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 India-China Joint Business Council and Modi Enterprises.
According to the report, Indian companies can offer services to Chinese animation 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 20-30 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 Ficci-KPMG report said that India's emergence as a medical tourism destination for international travelers presents an attractive proposition for the health-conscious Chinese traveler.
"The opening of the third border pass between China and India could become a gateway for India-China tourism from Tibet to Sikkim and vice-versa," it noted.
By 2011, when Nathu La is scheduled to be open for tourism, more than 300,000 Chinese are expected to travel through the mountain passes.