Indian Economics thread.
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How likely do you think India will be successful in attracting manufacturing?
Apparently, they have already attracted over Foxconn, Pegatron, Samsung, etc for phone manufacturing with their recent PLI program. Knowing Foxconn's history (closed in Brazil, scammed Wisconsin, and they promised 1 million Indian workers back in 2015, what happened lol?), one can be skeptical.
Source: (Foxconn to build 12 factories, employ 1 million in India)
But I don't think China should take India lightly. Manufacturing is a sector for strategic geopolitical importance (look at how China has leverage over the US due to its immense supply chain capacity and electronics manufacturing), and its not something China should just give up and sacrifice for the misguided pursuit of a predominantly service economy (look how well that suited the US in this pandemic). In my view, China needs to do whatever it can to keep manufacturers away from India at all costs (toys, shoes and shirts can go, but electronics, cars, industrial equipment, and components must stay), whether thru increased subsidies or by providing mass automation infrastructure. If Xiaomi can do it in China with fully automated smartphone assembly, Foxconn certainly can, and with the Chinese government's help, they can be less likely to leave en masse (although preferably, the government would sponsor and support Luxshare to the point it can dethrone Foxconn, which has gone lazy in the past several years being unwilling to invest in automation and industrial upgrading, preferring to fall back on cheap, exploitable workers)
Apparently, they have already attracted over Foxconn, Pegatron, Samsung, etc for phone manufacturing with their recent PLI program. Knowing Foxconn's history (closed in Brazil, scammed Wisconsin, and they promised 1 million Indian workers back in 2015, what happened lol?), one can be skeptical.
Source: (Foxconn to build 12 factories, employ 1 million in India)
But I don't think China should take India lightly. Manufacturing is a sector for strategic geopolitical importance (look at how China has leverage over the US due to its immense supply chain capacity and electronics manufacturing), and its not something China should just give up and sacrifice for the misguided pursuit of a predominantly service economy (look how well that suited the US in this pandemic). In my view, China needs to do whatever it can to keep manufacturers away from India at all costs (toys, shoes and shirts can go, but electronics, cars, industrial equipment, and components must stay), whether thru increased subsidies or by providing mass automation infrastructure. If Xiaomi can do it in China with fully automated smartphone assembly, Foxconn certainly can, and with the Chinese government's help, they can be less likely to leave en masse (although preferably, the government would sponsor and support Luxshare to the point it can dethrone Foxconn, which has gone lazy in the past several years being unwilling to invest in automation and industrial upgrading, preferring to fall back on cheap, exploitable workers)
in my opinion india can't compete with china. It's the africa of asia, they don't have efficient railway network, don't have highways don't have decent infrastructure. Comparing china to india is like comparing Germany to Morocco.
A quote from the article “This is probably the worst situation India has been in since independence,” said Jayati Ghosh, a development economist at Jawaharlal Nehru University in New Delhi. “People have no money. Investors aren’t going to invest if there is no market. And the costs have gone up for most production.” Trust me for India Covid comes at the absolutely wrong time, they can't act wisely to mitigate its economic effects
A quote from the article “This is probably the worst situation India has been in since independence,” said Jayati Ghosh, a development economist at Jawaharlal Nehru University in New Delhi. “People have no money. Investors aren’t going to invest if there is no market. And the costs have gone up for most production.” Trust me for India Covid comes at the absolutely wrong time, they can't act wisely to mitigate its economic effects
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They are gradually building up infrastructure, no matter how slow they are. China absolutely should not take India's threat to Chinese manufacturing lightly, and assume a bottom-line worst-case scenario by jacking up investment into automation infrastructure, industrial clustering, subsidies and tax policies for manufacturers and exporters.
Beijing should invest in more smart factories like this one to prevent any potential exodus.
Superpower India at work! This must be the most efficient loading team in the world.
Well on their way to super duper power status then! Not. Lol
Please don't take this the wrong way.
But we've all seen and knows about the infamous India railway standards. But I think it's good to remind ourselves that if India is to achieve their superpower ambitions, then they need to address their railway system first. Unless this is done, I don't think they are in a position to go anywhere, let along antagonizing China with their border antics.
But we've all seen and knows about the infamous India railway standards. But I think it's good to remind ourselves that if India is to achieve their superpower ambitions, then they need to address their railway system first. Unless this is done, I don't think they are in a position to go anywhere, let along antagonizing China with their border antics.
I don't think any other country was ever like that. Even the poorest in Africa. It just goes to show, freedom without discipline and respect will never work.
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