It has become conventional wisdom that China is the biggest story of our time. Now, as India goes through a similar process of integration into the global economy, it appears that the path that China and India follow will influence the global economy and business environment. Perhaps, then, India is the next big story. Yet China and India, despite their massive populations and growing importance, are quite different. Their economic structures, sources of growth, areas of competitive advantage, and the impact they have will remain different in the coming years.

The question, then, for global companies is what to do in each country. And the answer will depend on the circumstances of each company. But surely neither country can be ignored. The size and sudden importance of China and India is reason enough to make a comparison. Moreover, the integration of more than one billion Chinese and Indian workers into the global economy in the past quarter century was one of the most important economic events ever. Indeed it can be argued that their addition to the global economy was, in part, responsible for the spectacular rise in productivity growth in the West. And as incomes in China and India rise, the addition of more than two billion consumers to the global economy will contribute to global growth as well.

This publication offers some thoughts on the future direction of India and China, the risks and opportunities of doing business in each country, and the likely impact they will have on global business.