Although conventional international economic wisdom holds China’s hardware and India’s software industries to be equipotential,little attempt has been made to compare their information industries in an overarching dynamic framework.Using a schema that links intellectual to financial value creation,it is found that China has systematically moved ahead in creating a self-supporting industrial and innovation ecosystem.Hardware enjoys higher barriers to entry,which the Chinese companies are increasingly reinforcing with intellectual property investments.In addition to being better integrated with the global economy,they are also buttressed by the huge domestic market.The overdependence of Indian firms on selling low-value services to a few countries and insulation from domestic demand make them vulnerable to emerging competition and international economic ill-winds.The two countries provide a study in contrast on the effects of divergent industrial strategies. Although conventional international economic wisdom holds China’s hardware and India’s software industries to be equipotential, little attempt has been made to compare their information industries in an overarching dynamic framework. Using a schema that links intellectual to financial value creation, it is found that China has systematically moved ahead in creating a self-supporting industrial and innovation ecosystem. Hardware entering higher barriers to entry, which the Chinese companies are increasingly reinforcing with intellectual property investments. Plus to being better integrated with the global economy, they are but buttressed by the huge domestic market. The overdependence of Indian firms on selling low-value services to a few countries and insulation from domestic demand make them vulnerable to emerging competition and international economic ill-winds.The two countries provide a study in contrast on the effects of divergent industrial strategies.