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Well.. me being a programmer in india. you could consider this coming straight from the horse's mouth.. well amost! You need to look at things in a holistic manner. The points stated by the senior chinese programmer are not totally correct, nor are they totally trash. Yes there are lots of cases where we have more than the required number of programmers for a given project, or for that matter a lot of extra 'resources' are sitting idle in big Indian companies such as TCS, Wipro, Infosys, Satyam etc., but the saying that Indian code is inefficient , would be a bold statement. Its by the virtue of superior Indian coding skill vis-a-vis other countries', that India has developed for itself an enviable reputation plus an unsurmountable lead in the software world. Apart from cost benefits, India offers great brainpower, huge number of engineers, who are not only brilliant in there field, but are excellent in adapting to all situations, great analytical capabilities and above all a proven track record. If China could really give India a run for its money, by reducing a program by 4 times, as said by the learned friend, then i don't think that size of a company could be a hindrance for them to prove that. Because all Indian software giants started off as a 2-3 men team in a rented apartment, and it was only with sheer passion and skill that they created behemoths of today. Coding standards and methodoligies followed by Indian companies are acknowledged by each and every company in the world and the best China can do is, match it, and never ever better it. With due respect to chinese companies, they are a long way from even reaching where Indian coders are today, leave alone leaving Indian companies behind. And looking at other domains where China is really THE BEST and THE BIGGEST, for example, hardware, construction etc., the logic that they are behind because of want of money, does not seem rational, becuase chinese are known to excel in every field they are passionate about and are aggresive in. And i have not even mentionoed the supremacy enjoyed by Indian techies outside India, i.e. in every company in US UK or elsewhere, you'll find Indians rooling the roost in top technical positions as well as occupying a huge chunk of programming positions.