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Distinct Markets On The Rise: Cushman & Wakefield's 'The Great Debate: India vs. China'
11 Oct, 2005, New York, NY
Global investors and multinational corporations view China and India as two distinctly different markets: China as the world's leading manufacturer and fastest growing consumer market, and India as the world's business process and IT services provider with longer-term market potential. That was the consensus of opinion at "The Great Debate: India versus China," a Cushman & Wakefield Real Estate Forum at the Rainbow Room at Rockefeller Center in New York City today.
In his opening remarks, Bruce Mosler, president and CEO of Cushman & Wakefield, said, "With cap rates and yields compressing in the U.S. real estate investment market, we will see an increase in capital flow to China and India in the coming years." He added that these markets are becoming more attractive to investors and multinational companies as much for their intellectual capital as for their low labor costs.
Richard Middleton, managing director of Cushman & Wakefield China, spoke on behalf of China, outlining its size as a consumer market, infrastructure improvements and tremendous potential. Sanjay Verma, joint managing director, Cushman & Wakefield India, spoke of India's advantages as an English-speaking nation, and its highly educated workforce.
When asked what kinds of activities will be offshored to China and India, the debaters indicated that China leads for manufacturing and assembly, while India leads for IT, business processing and R&D investments. Mr. Middleton indicated that investors favor China over India for its market size, access to export markets, government incentives, favorable cost structure, infrastructure and macroeconomic climate. However, Mr. Verma said these same investors cite India's highly educated workforce, management talent, rule of law, transparency, cultural affinity, and regulatory environment as more favorable than what China currently presents.
Following the presentation by the two debaters, a question and answer session was held with a panel of real estate and business leaders: Patrick Morrison, real estate asset management director of Lucent; Ron Zappile, president United Technologies Realty and director of global real estate operations for United Technologies, and Dale Anne Reiss, global and Americas director of real estate, hospitality, gaming and construction for Ernst & Young. The moderator was Michael Buckley, president of Halcyon Ltd. Real Estate Advisors and director of Columbia University's Real Estate Development program.
Mr. Mosler, in final comments, said that "China and India are growing economies that are unique in their focus, as well as vast consumer markets. I think we will find that they both will be economic forces in the years to come."
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