We choose India to be an observational country because India’s links with Hong Kong, dating back to the 1840s, have led to the territory having one of the larger Indian communities abroad, with current estimated numbers being about 35,000, of whom nearly 23,000 hold Indian passports. Due to their long presence, the Indians have been able to integrate themselves into the mainstream of Hong Kong life, as can be seen by the number of second- and third-generation persons of Indian origin who speak fluent Cantonese and feel quite at home in Hong Kong.
On the other hand, India as the same as China, the world's largest democracy, with the second largest population that reached 1.02 billion in 2001, is also one of the largest developing countries in the world to have gone in for a major revamp of its economic structures over the past decade.
The India Government's policies are relatively simple, transparent and geared towards promoting domestic and foreign private investment. External trade has been liberalised through lowering of tariffs and progressive reduction of import controls. Tax rates, both corporate and personal, have been rationalised and compare favourably with other major world economies.
The Indian economy has, since 1991, undergone profound changes not only in its direction, but also its fundamental structures and underpinnings. The deliberate change from a command economy based on a socialist market model to that of a market economy with a human face has led to major readjustments. As a result, there has been greater reliance on technology, improvement of systems, streamlining of procedures relating to approvals, and general reduction in the involvement of the government in the business of running businesses. These changes have been reflecte ...