©Madam, - The article on the National Competitiveness Council by Economics Editor Mark Coleman (The Irish Times, November 25th) describes the severe challenges we face in Ireland due to economic growth in the low-cost countries of Asia, particularly China and India.
It is inevitable that these countries will have to expand their economies to lift their masses from abject poverty and offer them better living standards. As the article points, out both countries are increasing their share of global trade, increasing both their imports and exports.
Everyone in financial circles knows the benefit to the Japanese economy in the past few years of massive Chinese imports of products and services. As for India, its exports are growing by 20 to 25 per cent annually, but annual imports, at $120 billion, are growing at about 30 to 35 per cent. In monetary terms India is importing additional goods and services worth $20-25 billion every year.
The World Bank and IMF believe that India and China have the potential soon to become the engine for global economic recovery. Indian imports include value-added agricultural and food products, ready-to-use food, chemicals, IT speciality software and hardware, engineering and electrical machinery, high-technology products and financial services.
In addition, there are hundreds of billions of dollars' worth of projects in infrastructural development which are in need of investment and expertise.
Already a number of Irish companies are taking advantages of the expanding consumer and industrial markets in China and India. Both these countries have a sizable and growing middle class of about 350 million people each, and with their increasing purchasing power and appetite for Western goods we can do a lot more to increase our exports.
It is up to us to see that the cup is half full and not half empty; we can turn this chill wind into a breath of fresh air. - Yours, etc,
Dr PRABHU KULKARNI, Director - India, Irish Exporters' Assocation, Merrion Square, Dublin 2.