China and India need to work together and focus on more than just low cost, said a speaker at the China-India Plastics Industry Summit 2007.
``Sustaining high growth is the key challenge for both economies,'' said Jayant Kamat, senior executive president of polymers at Reliance Industries Ltd., at the May 20 event in Guangzhou.
China and India share common objectives of sustaining economic growth, creating employment and reducing poverty levels.
``Both countries are at crucial points in the development cycle. We need to come together for long-term benefits,'' Kamat said.
Key areas include skills, materials and machinery, he said. The Chinese population is aging rapidly due to the ``one family/one child'' policy strictly enforced since 1982. But India has a surplus of skilled labor.
``China can take advantage of India's available talent pool,'' he said.
India also is closely tied with the development of China's plastics industry through exports of commodity resin. Kamat said India's resin production capacity will reach 31 billion pounds by 2011, with polyolefins accounting for as much as 80 percent of the total.
Kamat said India is replicating China's growth model. India's plastics industry will have a total of 60 billion pounds of processing capacity by 2015. To achieve the goal, India needs to leverage Chinese expertise in machinery, molds and dies and manufacturing operations. Kamat also suggested collaboration for making machinery in India. ``That will help the Chinese capture export markets,'' he said.
The Beijing Olympic Games are creating the need for plastics products. Kamat said China is investing more than $13 billion in plastic pipe systems for drinking water, irrigation and flood control. That means opportunities for processors and resin producers in both countries, he noted.