short note

China and India are the two fastest growing economies of the world. That means a huge population base that is trying to increase its standard of living. That in turn means there is a huge appetite for all basic commodities - energy, metals, agricultural commodities. The demand is so huge that it cannot be met from domestic sources. As a result, we find China and India hunting for commodities all around the world. Often leading to face offs. So far, China has been more proactive. Be it Myanmar or Africa. China has deeper pockets and greater political flexibility. It also began early. For example, it has offered billions of dollars of cheap loans, infrastructure support and even military aid to African nations. All with an eye on the massive high quality reserves present there. India is playing catch up. Indian oil & gas companies such as ONGC, Reliance Industries and Indian Oil are now present in Sudan, Ivory Coast, Libya, Egypt, Nigeria and Gabon. But the billion dollar question remains - will India be able to match China in the great commodities stake? From all indications, we believe it won't.