Indian Economics thread.

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Petrolicious88

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RT America discussing about the Indian Iphone factory riots.

A few interesting talking points:

1) Indian workers are paid. But their salaries are declining from their initially agreed amounts. By an obscene degree.

An graduate engineer's pay starts out at USD 286/month, now is USD 163/month.

The majority of the workers, who are lower skilled labour. Pay is now going as low as USD 6.80/month.

With such wages, coupled with notorious Indian working conditions, its begging for a workers' riot. Lol...

2) Due to the obscene Indian government tariffs on Chinese imports. Iphones made in China is too expensive for the average Indians. Apple only holds a 3% market share in the Indian smartphone market.

3) So to noone's surprise, IPhone sets up a factory in India for the Indian market. To bring prices down for iPhones in India and grab a bigger market share. Nothing of the 'moving manufacturing from China to India' that the Indian media and the govt likes to boast about. What a load of crap! Lol.. Because this crap is nothing new at all! MNCs have been manufacturing stuff in India exclusively for India because of their idiotic import tariffs for decades already! So this fantasy of India grabbing manufacturing from China is unsurprisingly, a fantasy!

4) Now that production of iPhones is suspended in India. Apple now wants to send auditors to Covid-19 ridden India to 'investigate'. Lol...

Basically this whole iPhone story in India is nothing new. These are the old friends of India:

1) Ridiculous import tariffs to extort foreign firms into manufacturing into India.

2) Using the so-called 'big Indian market' as bait. Companies like GM gobbled up that bait, and failed miserably in India. Apple is just starting to get a feel of what GM had went through.

3) Ridiculous labour policies. Wages not being honored. Pays so low, it would be considered slavery in many parts of the world.

4) Worker riots. Even farmers are rioting! Is this a new thing in India? Lol...

India's economy was ahead of China's in 1980. Its now 5x smaller than China's economy. Everyone knows what India's problems are except for India itself. Lol.. This is not a country on a trajectory to overtake China. This is a country on the way to becoming a basket case of Asia!
Not to overstate the obvious. But there’s coordinated effort between the US and India to hurt Chinese economic interests in India and abroad.

First convince the Indians to ban Chinese products (not hard given India’s view towards China), and in that vacancy, have US firms move into Indian market.
 

RT America discussing about the Indian Iphone factory riots.

A few interesting talking points:

1) Indian workers are paid. But their salaries are declining from their initially agreed amounts. By an obscene degree.

An graduate engineer's pay starts out at USD 286/month, now is USD 163/month.

The majority of the workers, who are lower skilled labour. Pay is now going as low as USD 6.80/month.

With such wages, coupled with notorious Indian working conditions, its begging for a workers' riot. Lol...

2) Due to the obscene Indian government tariffs on Chinese imports. Iphones made in China is too expensive for the average Indians. Apple only holds a 3% market share in the Indian smartphone market.

3) So to noone's surprise, IPhone sets up a factory in India for the Indian market. To bring prices down for iPhones in India and grab a bigger market share. Nothing of the 'moving manufacturing from China to India' that the Indian media and the govt likes to boast about. What a load of crap! Lol.. Because this crap is nothing new at all! MNCs have been manufacturing stuff in India exclusively for India because of their idiotic import tariffs for decades already! So this fantasy of India grabbing manufacturing from China is unsurprisingly, a fantasy!

4) Now that production of iPhones is suspended in India. Apple now wants to send auditors to Covid-19 ridden India to 'investigate'. Lol...

Basically this whole iPhone story in India is nothing new. These are the old friends of India:

1) Ridiculous import tariffs to extort foreign firms into manufacturing into India.

2) Using the so-called 'big Indian market' as bait. Companies like GM gobbled up that bait, and failed miserably in India. Apple is just starting to get a feel of what GM had went through.

3) Ridiculous labour policies. Wages not being honored. Pays so low, it would be considered slavery in many parts of the world.

4) Worker riots. Even farmers are rioting! Is this a new thing in India? Lol...

India's economy was ahead of China's in 1980. Its now 5x smaller than China's economy. Everyone knows what India's problems are except for India itself. Lol.. This is not a country on a trajectory to overtake China. This is a country on the way to becoming a basket case of Asia!

Oh the irony. Meanwhile the west has been quiet and condoning sweat shops and slave labor in India involving an American corporation.
 
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Sardaukar20

Captain
Registered Member
Not to overstate the obvious. But there’s coordinated effort between the US and India to hurt Chinese economic interests in India and abroad.

First convince the Indians to ban Chinese products (not hard given India’s view towards China), and in that vacancy, have US firms move into Indian market.
It been happening. India doesn't need the US to convince it to ban Chinese products. India have been doing this off and on for a long time. The problem for India is not the business opportunity to grab manufacturing for China. Because there is already plenty of it. Bangladesh, Vietnam, and Indonesia have been gobbling up much of manufacturing that is moving out of China. All that the US corporations, and many MNCs want is the cheapest and most convenient place to outsource manufacturing. This US-Indian game right now is just that, a game. After the US is already wary of globalization, would the US wanna prop India up as 'another China'?

The real problem for India is that it just cannot get its act together. India could give 'cheapest' labour, but no way in hell could it give 'convenient'. Why? Perhaps its just pure arrogance. India was and still is not serious about education, infrastructure, and basic rule of law. All the other manufacturing countries could provide skilled labour, basic infrastructure like industrial zones, and at least some measure of law and order.

There are no shortcuts to becoming a manufacturing hub for foreign companies. The people, government, and companies all need to work together, and make an attractive place for outsourcing manufacturing. Indian leaders and elites have always boasted about India's 'destiny' to become super duper power. Nice loud statements, but no work and effort put into them. And what is India's objective from pulling manufacturing from China? Is it to bring jobs to India and lift millions out of poverty? That's what they always say. But they don't really care about the poor Indian masses, do they? We have all seen too much of it already. I bet the real objective is far more childish. Its just to bring China down, and push India up to dominate and 'rule' all of Asia. That is the only way to explain why India has been doing what it has always been doing. Announcing that India is gonna trump over China. But at the same time India is 'Superpowah' so India is already perfect. Don't anyone dare tell India what to improve!

India is already a mighty super duper powah! India can send a probe to Mars, and build an aircraft carrier. While at the same time: Cow>Human, poverty is necessary, toilets are for losers, slavery is fine, and pogroms are good. Such perfection! Lol...
 
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Sardaukar20

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Imagine if Winstron was a Mainland Chinese company (not realistic, but just for argument's sake). It'll be all over the news: "Apple-contracted Chinese firm found to have practiced slave labour". That company would be crucified by the Western and Indian media. The Indian govt, Apple, and the US govt will sue this company to hell and cut all ties. Then the US govt will also put this company on the entity list.

Indians will be on the streets burning the Chinese flag and Xi Jin Ping effegies. And the Indian media will cover it non-stop.
There will be no mention about the Indian labour agencies who recruited and exploited these workers. There will be no policing by the state govt to protect foreign assets. There will be no 'justice for Winstron'. It'll all be China bad, China bad, China bad.
 
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gelgoog

Brigadier
Registered Member
Looks like Wistron should just cut their losses and leave while early and not fully committed. There is just too much risk from all directions in this venture. They are now on probation and can potentially lose all their business contract with Apple.

I think I heard somewhere that China has laws limiting the amount of subcontracted work in manufacturing jobs.
So in China something like this might have never happened to begin with.
 
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