Indian Economics thread.

[ansy1968]

Actually Indian Govt is providing subsides and other incentives for companies who source majority of their components locally. Its what they call PLI (Production Linked Incentive scheme).

Indians are ultrasensitive about "Made in India" stuff so having this label would work well for them marketing wise.

Also Indian labour is very cheap so when you take all things into account then its a sound business decision.

@Kaeshmiri how about productivity? having cheap labor doesn't connote greater profit if the whole supply chain need to be imported? especially with creaking infrastructure hindering production and supply.

 

[PiSigma]

Xiao Mi is expanding in India. 99% of the components would also be sourced locally from India according to Bloomberg. Why...?

Not likely. Unless you want a 1999 Nokia. Just think how many of those components can actually be made in India? Most likely import from China, repackage in India then it's suddenly made in India.

 

[Kaeshmiri]

@Kaeshmiri how about productivity? having cheap labor doesn't connote greater profit if the whole supply chain need to be imported? especially with creaking infrastructure hindering production and supply.

The recent budget in India hiked custom duty for electronic imports. Their products will simply become uncompetitive in Indian market if they keep importing all components and fail to keep the price down . Remember they aren't the only Chinese player in town ( Vivo, Oppo, Realme all produce very competitive products). They have no choice but to invest in local supply chains and stay ahead of its Chinese competition and Samsung (which has invested a lot locally and are now producing competitive products).

Also they wont be importing the whole supply chain, its not possible to do that. Critical components will continue to be imported but other components can be produced locally.

Regarding stuff like productivity, logistics, infra. They've probably made the calculations . Incentives, subsides, low wages will offset the loss there.

 

[gelgoog]

Actually Indian Govt is providing subsides and other incentives for companies who source majority of their components locally. Its what they call PLI (Production Linked Incentive scheme).

Indians are ultrasensitive about "Made in India" stuff so having this label would work well for them marketing wise.

Also Indian labour is very cheap so when you take all things into account then its a sound business decision.

Right. It's the same reason companies have factories in Brazil.
The factories will supply the local market in India but it's highly doubtful they'll export anything.

@Petrolicious88
99% locally sourced components is BS. They can't do that even in China. Most of the cost is in semiconductor chips. How many of those will be produced in India?

 

[Tyler]

Right. It's the same reason companies have factories in Brazil.
The factories will supply the local market in India but it's highly doubtful they'll export anything.

@Petrolicious88
99% locally sourced components is BS. They can't do that even in China. Most of the cost is in semiconductor chips. How many of those will be produced in India?

Are the Indians going to invest in euv machines? They have the ambitions of becoming independent in semiconductors.

 

[KYli]

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[siegecrossbow]

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Marvel might want to come out and clarify things before it puts a dent in the Indian box office.

 

[AssassinsMace]

I'm sure India would love the idea that Hollywood has to bend over backward because of this misidentification that's no fault of Hollywood. They like attention.

 

[PiSigma]

I'm sure India would love the idea that Hollywood has to bend over backward because of this misidentification that's no fault of Hollywood. They like attention.

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Marvel might want to come out and clarify things before it puts a dent in the Indian box office.

Disney might spend more on PR than what they can make from the India market initially... So won't bother now, cost too much for 0 gain

 

[Dolcevita]

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Marvel might want to come out and clarify things before it puts a dent in the Indian box office.

Disney might spend more on PR than what they can make from the India market initially... So won't bother now, cost too much for 0 gain

Why spend more money when Indians is giving them free publicity.