#PushKnowledge
Rajesh Garg .

Multinationals are looking to relocate their operations from China to India, due to sour relations and bad market sentiments related to China.

CENTRE HAS PROPOSED TO REFORM NEW LABOUR LAWS AND FAST-TRACK ITS IMPLEMENTATION DEMANDING FLEXIBLE LABOUR LAWS FOR EMPLOYERS. THIS IS AN EXCELLENT MOVE TO ATTRACT FOREIGN COMPANIES TO MOVE THEIR MANUFACTURING UNITS IN INDIA. BUT IN MY OPINION, IT IS JUST NOT ENOUGH TO COMPETE WITH CHINA.

Here’s why:

1. China has been built on infrastructure, investment and manufacturing; India has barely scratched the surface on all three.

2. Indian democracy is so diverse, whereas China remains a one party state.

3. We lack a 'culture of manufacturing' prevalent in Germany and South Korea. This primarily includes your best brains not wanting to join the sector.

4. China is dumping products in foreign markets, it is cheaper to import products than to manufacture within the country.

5. India lacks skilled labours when it comes to manufacturing.

This makes me wonder, should India even compete with China in lines to become a global industry or should we stick to the service-based economy?

As a group of intellectuals, please let me know your views.

Originally Posted Here
9 Comments

Sumit Saha

India has been trying to push manufacturing since 1990's, which was decades later after China started building their infra. Years later India is still somewhat at the same spot. India is still at number 63 in ease of doing business while China stands at 31.
India has lost it's chance to become the production house of the world. They should focus on creating manufacturing plants for domestic market instead of asking other countries to invest.

Arokya Inian

Companies have already moved from China to Vietnam and Indonesia

Sumit Saha

is there any chance India could have a stake?

Arokya Inian

Yes but there is a huge trust deficit that raises big doubts in western capital investors minds

Mansoor Shaikh

true. Vietnam, Indonesia and some even in Malaysia and Cambodia.

Vipul Jain

Imo we need to look at approaches other than India vs China, its about growing your country! Now how effecient you're to achieve better quality at lesser price is a debatable topic. Apart from manufacturing, infra and investment the major factors will always stay relations and sentiments because without them you can not make a sustainable business or country! why to neglect available raw material in India for those major OEMs and ODMs into motor, chemical, metal, textile, agriculture, petroleum etc? That too with better values and relations, cheaper labour, democracy over communism etc. So, India will benefit from these moves but I totally agree that defeating a country like China in a heartbeat is difficult too.

Sumit Saha

I agree with you. Relationships matter in every transaction.
India has yet to strategically put themselves on the map.

Mansoor Shaikh

"Competing with China" is just a narrative peddled on media.
In reality we cannot even close to the Chinese manufacturing industry. I visit China frequently and say with full certainty that they are atleast 100yrs ahead of us.

Hyper Nationalism has choked everything.
First we need to get out of denial phase and accept that we are being screwed. Then fix manufacturing policies and infrastructure and work on corruption.

Labour laws wasn't something that was holding us back in the first place.

Ankur Sharma

If you expect states like UP to have the best of infrastructure to compete with China then I must say we are very optimistic ?

It's like saying that the govt will setup an industry in villages where people do not get 24-7 electricity .. and yes .. have we forgotten that these industrial setup will require workers .. so either we need setup to skill them.. or we expect people who have some skill to come to another place .. anyways it's good if we see something work but the current leadership is more concerned about my religion and caste than what I earn ..

Let's see who agrees to disagree🙏🙏

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