Study the following passage carefully to answer the questions that follow each passage:

PASSAGE I:

Chinese Goods sight now make up less than 3%of India's imports and if the figures are sight they are growing at no more than 25%a year. So, why is everyone making such a hue and cry over the Chinese threat? Aren't Indian Industrialists merely trying to get more tariff protection by stoking Xenophobia? Probably some are. But that should not divert attention from the main point : China has finally shown up on India's economy rodar screen and it needs to be watched.

The figures may not yet reflect, but anecdotal evidence points to the fact that China is weighting heavily on the minds of the manufacturing industry. Even if you discount all the praying and petitioning for protection there is enough indication that increasing number of business men are to dag looking of setting up operations in China. IN other words they are putting their money where their mouth is: If you are in manufacturing, Industry. Even if discount all the praying and petitioning for protection, there is enough indication that increasing number of businessmen are today looking at selling up operation in China. In other words they are putting their money where their mouth is: if you are manufacturing if makes for more sense to operate out of China than out of India.

According to news paper reports. Ajanta the world largest clock maker is shifting its manufacturing base tools, stock and travel from morb in Gujarat's Saurashtra region to Shenshen in china. Many other Indian companies, from Bajaj electricals to Blow plast are looking at options that range from setting up their own operations in China to starting joint ventures to out sourcing. What we have seen so far could be just the tip of a bigger trend: there are lot more Indian companies central around three fourth of China's exports Only one fourth of its exports consists of goods made by Chinese owned companies and that store is shrinking, according to the wall street journal.

In other words, China's amazing export performance is due toits ability to gell itself as the perfect base for global manufacturing. This puts the issue in a larger context. This is the largest term issue that should engage the attention of policy makers, more than the flood of imported goods from China.

It is almost as if focusing on export means lettering down the country, just as rupee depreciation, in some quarters is take a man rational emasculation? Focussing on exports will mean a lot of things policy makers only need to talk to Indian firms who are chocking out China to got a laundry list of needs. There is of course, another way of looking at all this China competitive advantageslie in its manufacturing towers, India's advantageslie in services powered by its highly skilled English speaking man power. It is only natural therefore, that even as India in on the way to becoming the global back office for the world, China is becoming the global manufacturing base. We believe that this line of thinking is misleading. The only thing that prevents India from becoming a global manufacturing base is the lick of a governmentthat functions the way it should. Meanwhile, here's a piece of advice for Indian businessmen. Please do what everit takes to keep yourbusinessalivewhether it means investing in Shenzhen or outsourcing from Timbuktoo - but do thinkglobal. While the government gets act together, the country’s search for new business models that skirt around existing bottlenecks has to continue. Suehdeep Agarwal's Bhartiya International, India’s top leather garments exporter with a turnover of Rs. 200 crore, has been notching up 30%growth year after year by outsourcing its requirements from factories all around the world - including China. Maybe that's one way to go.