Unlike the Chinese exporter who is now more in a position to command his price compared to those from other countries, the Indian exporter (chiefly from the IT sector) could find his business volumes evaporating if he takes the liberty of making his services dearer. This is because the Indian exporter's competitiveness is already wafer thin; what with sky rocketing business costs (that include cost of land & other assets, the much hyped about employee remunerations etc.) back home. It is a fact (albeit one that is not a fraction as talked about as the more 'glamourous' indices benchmarking economic growth are) that India leads the developing world in having the steepest rate of increase in business costs.
Already, China, the Philippines, Eastern Europe and other parts of the world are fast catching up with India in the latter's trump card business; the capability to vend low end and cheap (thus far) IT services for the developed world.
China's export capability, on the other hand, derives it's greatest strenghts from facets that are much more sustainable and real; it's very high productivity, highly developed infrastructure, much lower corruption in business, the extreme ease with which businesses can open and continue and above all the single minded and dedicated focus by the administration on improving both business climate.
Let the Indian exporter try to play catch up with the Chinese on strategies such as pricing; and the make believe world of 'Indian economic
