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.
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.