Has India missed the manufacturing boat?

[Aegis DDG]

@Chinese-Dragon Do you agree with the topic's statement?

 

[WAR-rior]

Well an old topic discussed it a lot.

I wud say India mite have almost missed the train but actually not missed it. Modi enters at the rite tym. Vajpayee cleared so many infrastructure projects which has led to industrialization of India post 2000. Modis gonna simply build, build and build.

 

[Chinese-Dragon]

@Chinese-Dragon Do you agree with the topic's statement?

Not necessarily.

It's never too late. China and India both had enormous working age populations even back in the 1950's, but did not have the right policies to take advantage of it.

With the right policies, growth in manufacturing is always possible. And India's new government is likely to be very pro-business and pro-manufacturing.

 

[Skull and Bones]

Even if we start my achieving self reliance in manufacturing needs for 1.2 billion, still the demand will be high enough to be sustainable.

 

[Gandhi G in da house]

Since labour costs in India are still very cheap, we can still catch the bus.

 

[Skull and Bones]

Since labour costs in India are still very cheap, we can still catch the bus.

Labor cost is just one aspect, we seriously lack in infrastructure to sustain a large scale manufacturing based economy.

 

[Gandhi G in da house]

Labor cost is just one aspect, we seriously lack in infrastructure to sustain a large scale manufacturing based economy.

I was just hoping for the best. Anyway what all do we need in terms of infrastructure ?

 

[TimeToScoot]

There is a reason why I've been chanting 'Abki baar Modi sarkar' for the last 6 months. And that reason is a stronger economy - corruption. We have to pick up vigorously in the hardware & manufacturing sector and I hope that Modi and his team have a plan in their head.

 

[Skull and Bones]

I was just hoping for the best. Anyway what all do we need in terms of infrastructure ?

The first thing is, we need 'self sufficient' industrial zones to cut the time required for transportation in between, for example, if we are manufacturing cars, then all the subsystems manufacturing hub has to be located within a very small radius. And those zones has to be near sea ports to be more conducive for exports, if you're eyeing for that.

 

[TimeToScoot]

The first thing is, we need 'self sufficient' industrial zones to cut the time required for transportation in between, for example, if we are manufacturing cars, then all the subsystems manufacturing hub has to be located within a very small radius. And those zones has to be near sea ports to be more conducive for exports, if you're eyeing for that.

I'm guessing these manufacturing units will also require very high uninterrupted power supply. That would be another challenge for the government.

 

[Skull and Bones]

I'm guessing these manufacturing units will also require very high uninterrupted power supply. That would be another challenge for the government.

If you look at it, India has a huge potential in off shore wind farm power generation. With right policy, India can meet >20% of it's requirement from wing energy.

 

[tranquilium]

I don't think there is ever a "too late". Yes, later comers in the business will experience more difficulty and takes up more effort to move up the pecking order, but it is certainly not impossible.

The thing is, I also wouldn't hold out for a magical solution from a single leader or a single decade of effort. China started to build its manufacturing infrastructure since the mid-1950s and it took almost four decades to progress to a first class industry power and almost two more decade afterwards to become the largest industrial power in the world.

Also, this is not just business decisions. Basically, building a world class manufacturing infrastructure isn't just about making changes to labor laws or making business decision. It is a massive effort that involves almost every aspect of the nation. For example, to have educated workers, you need to increase the general education level of the country. In order for the material to flow smoothly, you need to build nation wide transportation network and these are the easier requirements to fill.

Other far more complicated requirement is that you need to have a stable society, this means resolve ethnic conflicts, religious conflicts, conflicts between different classes and castes. One big advantage China enjoyed is that latter, more complicated issues such as ethnicity and religion has been resolved long before the founding of PRC.

To sum it up, it is never too late, but the process certainly won't be easy or quick.

 

[third eye]

As the old saying goes..

China is doing well because of its Govt.
India is does well despite its Govt.

Hopefully things will change soon. Its not going to easy, but its going to be worth it.

 

[Beidou2020]

As the old saying goes..

China is doing well because of its Govt.
India is does well despite its Govt.

Hopefully things will change soon. Its not going to easy, but its going to be worth it.

China is doing well despite our government. There is sooooo much red tape and regulations and all sorts of government interference hammering the development of China.

 

[tranquilium]

China is doing well despite our government. There is sooooo much red tape and regulations and all sorts of government interference hammering the development of China.

I have a different opinion on the subject. Yes, there exists unnecessary red tape and regulations that drags down efficiency, but they are being constantly improved and streamlined upon. Chinese government are aware of the issues and are making noticeable progress to fix it. Also, at the end of day, the overall effect of Chinese government on China's economic development has been overwhelmingly positive. We shouldn't dismiss the good stuff just because it had imperfections.