How could India / Pak / B'Desh manufacturing labour compete with China's?

[TopCat]

Also, what are Pakistan's and BD's plans for this .... they also face the same dilemna !!!!

I'm sure they are also finding chinese table fans and toys in their markets ... though they have much smaller volumes (because of market size and lower foreign exchange reserves).

BD does have a plan and that is, while Chinese labors are getting paid higher salary, the manufacturing industries will shift towards us. We want to take the place of China in textile while China can take the place of USA ...

Chinese labor are way better off than BD labors and had better standard of life.

Menial labors are always bad and one has to run the manufacturing company specially labor intensive companies like a military drill camp. I had odd job in USA and they treat the employees similarly. We did not even have a chair to seat.

 

[xataxsata]

BD does have a plan and that is, while Chinese labors are getting paid higher salary, the manufacturing industries will shift towards us. We want to take the place of China in textile while China can take the place of USA ...

Chinese labor are way better off than BD labors and had better standard of life.

Menial labors are always bad and one has to run the manufacturing company specially labor intensive companies like a military drill camp. I had odd job in USA and they treat the employees similarly. We did not even have a chair to seat.

1. The BD gets EU/US orders due to the fact that it comes under with very low terrify because of a least developed country. This makes BD stuff cheaper as compared to chinese or Indian stuff in EU etc.

But with India signing FTA with EU our stuff will get very low tariff and the BD will loose its edge.


2. And as BD will become a developing nation it will attract the higher tariff that make it difficult for you.

3. The third point is BD uses imported raw material from India. Obviously it will add to ur rising cost.

4. India have cotton + cheap labor + low tariff (soon) + designers + technology + investment so it will march way ahead of other.

 

[AADHAAR]

BD does have a plan and that is, while Chinese labors are getting paid higher salary, the manufacturing industries will shift towards us. We want to take the place of China in textile while China can take the place of USA ...

Chinese labor are way better off than BD labors and had better standard of life.

Menial labors are always bad and one has to run the manufacturing company specially labor intensive companies like a military drill camp. I had odd job in USA and they treat the employees similarly. We did not even have a chair to seat.

I am not sure, BD will actually be able to beat China... at low cost manufacturing.

India would always want to buy cheap table fans and diwali lights from BD, than from China. (same is true for Pakistan).

As of now, Pakistani manufacturing is quite costly ... so, looks slim chance that they will ever be supplying low cost table fans or electric irons to India.

But the underlying fact is that .... Pakistan and BD labour will simply not allow Foxconn factories (like those making iPhone) to operate in their country.

So, nobody expects to see "Made-in-Bangladesh" or "Assembled-in-Bangladesh" iPhones.

For Pakistan, only terrorists will like to use n-hexane as a form of dirty bombs.

Nobody can imagine a Punjabi or a Karachiite cleaning iPhone screens with n-hexane.

Hence, ultimately Pakistan and BD will be looking for solutions ... mostly like what India will be looking.

Copying China style manufacturing, in NOT a workable option.

 

[TopCat]

1. The BD gets EU/US orders due to the fact that it comes under with very low terrify because of a least developed country. This makes BD stuff cheaper as compared to chinese or Indian stuff in EU etc.

But with India signing FTA with EU our stuff will get very low tariff and the BD will loose its edge.


2. And as BD will become a developing nation it will attract the higher tariff that make it difficult for you.

3. The third point is BD uses imported raw material from India. Obviously it will add to ur rising cost.

4. India have cotton + cheap labor + low tariff (soon) + designers + technology + investment so it will march way ahead of other.

You are not well informed. We dont get tariff concession in USA yet we are doing better than India in that market. Sure we do get some concession in Europe.

Its not only price but the capacity to deliver will make us ahead of you in the years to come. We already passed the phase of low cost manufacturing.

 

[TopCat]

I am not sure, BD will actually be able to beat China... at low cost manufacturing.

India would always want to buy cheap table fans and diwali lights from BD, than from China. (same is true for Pakistan).

As of now, Pakistani manufacturing is quite costly ... so, looks slim chance that they will ever be supplying low cost table fans or electric irons to India.

But the underlying fact is that .... Pakistan and BD labour will simply not allow Foxconn factories (like those making iPhone) to operate in their country.

So, nobody expects to see "Made-in-Bangladesh" or "Assembled-in-Bangladesh" iPhones.

For Pakistan, only terrorists will like to use n-hexane as a form of dirty bombs.

Nobody can imagine a Punjabi or a Karachiite cleaning iPhone screens with n-hexane.

Hence, ultimately Pakistan and BD will be looking for solutions ... mostly like what India will be looking.

Copying China style manufacturing, in NOT a workable option.

It depends. You want table fan from BD. Hmm, i dont think we can deliver any cheaper than India. We used to get cheaper fan from India. I dont know whether people still get those or not. I remeber Hira Fan, very heavy and makes awefull noises.

You should contact National Fan company from BD. They are very smooth, hardly any sound. I can also give you some more companies who makes electric fans if you are interested.

Regarding iPhone part. Sure we will certainly go to that segment. People already started manufacturing mobile phones in the country. Samsung is coming with billions of dollar of investment. We are exporting home appliances like TV Freeze Washing Machine etc to South East Asia and USA. Just be patient my friend.

 

[SinoChallenger]

Copying China style manufacturing, in NOT a workable option.

LOL...... the 800 million indians on the edge of starvation obviously don't have a say whether they are allowed to put food on the table by working in a factory

 

[AADHAAR]

LOL...... the 800 million indians on the edge of starvation obviously don't have a say whether they are allowed to put food on the table by working in a factory

Trolling again ... with nothing useful to add.

Can you just keep off, from here !!!!!

 

[IndoCarib]

very typical response from Chinese members. When everything else fails bring Indian poverty & child malnutrition into discussion

 

[Korean]

The said reality is that as bad as Foxconn's work condition sounds like, Foxconn is still one of the best place to work in China. Now imagine what ordinary Chinese workers working for smaller and even more ruthless employers are going through right now.

Thousands of people apply for a job at Foxconn everyday.

 

[Hello_10]

When I see things like these, I start feeling that India is on the right way. We have GDP growth of more than 7% but we havent sacrificed our freedom for the sake of development. People in India have a voice. They can speak out for each other without fear. They can oppose anything they feel wrong about. And even after this, we are achieving a GDP growth of more than 7%.
I wouldnt be happy if we were to sacrifice our freedom to speak out and protect our fellow countrymen for that extra 3% growth of GDP. After all, GDP is not everything.

I feel sorry for all those people going through these lawless labour practices.

Minimum Wages in Kerala Kerala Minimum wage
List of minimum wages in People's Republic of China - Wikipedia, the free encyclopedia China minimum wage

Taking a 200 rs daily pay for simple calculation, turns out to be about 770 RMB per month in Kerala

List of countries by GDP (PPP) - Wikipedia, the free encyclopedia List of GDP PPP
List of countries by GDP (nominal) - Wikipedia, the free encyclopedia List of GDP Nominal

Things are about (1 and a half times) as costly in China compared to India

GDP $5.4 trillion nominal -> GDP $10.1 trillion PPP (China)
GDP $1.6 trillion nominal -> GDP $4.0 trillion PPP (India)

So looking at the facts, an Indian agricultural worker is on par with his/her Chinese counterpart if not better in terms of pay .
Also, the working conditions over in India are much better than in China.

Per capita income of India on PPP was even above to China in between 1980 to 1991 but China invited foreign investment since mid 80s which increased their export dramatically with increasing overall GDP of China faster than India.
http://www.dbresearch.de/PROD/DBR_INTERNET_DE-PROD/PROD0000000000192108.pdf

And since 1991, India too registered around 7% growth but China was at 10% growth mainly due to external demand and tight policy of their government for domestic investment to improve infrastructure since 80s which helped their industries (and exporters) to produce the products cheaply on the back of good infrastructure also. I used to read everywhere in between 1997 to 2007 that Chinese increase in export came on the cost of that of ASEAN (and also India) as China was able to make little better products with less price also which helped them gain over ASEAN+India while competing in the western market. And yes Chinese companies learned from Asian tigers like Singapore/ South Korea etc and improved their production lines also which overall reduced price of their products with increasing its quality also.

But yes China hasn’t done anything which other Asian tigers like Thailand, Malaysia, India, Turkey etc haven’t done to grow their industries and they aren’t really far away from China. Yes Chinese investment on R&D is very high, among the highest in the world, but the Newly Industrialised Countries are also catching up and they aren’t far away than China. And when a saturation will be reached, hopefully by 2020, we will see most of the G20 countries more or less close to each other……….
Newly industrialized country - Wikipedia, the free encyclopedia

 

[Kyusuibu Honbu]

Just some info regarding Indian manufacturing

India in top 10 manufacturers list

India topped developing countries (excluding China) in production of textiles, chemical products, basic metals, general machinery and equipment, and electrical machinery.

It overtook Brazil in the production of motor vehicles and now ranks second among developing countries after Mexico.

However, its Asian competitors Thailand, Malaysia and the Philippines are ahead in the production of electronic goods such as computers and office equipment, radio, television and other communication equipment.

Good news that automobile manufacturing is growing, but we we seriously need to concentrate on electronic goods, especially communications equipment.

 

[Kazhugu]

establish prison labor camps...where they work for free....voila..problem solved....

 

[ashokdeiva]

Lets put it clear guys.
China has a very good, much cheaper labour base. The cost of essential commodities are cheeper in China.
but its the reverse in India. Our labour costs are day by day increasing and the price raise is increasing. with such thing and lazyness in the work force except Bihari migrant labours. its tough compeeting with China

 

[qwerrty]

damn, stepping on them tails again..

Workers in Foxconn India struggle for better wages and union rights

CITU union is demanding basic pay of Rs10,000 (US$221 approx) for the regular workers. Currently a regular worker with four years of experience receive only Rs4800 (US$106 - approx) on CTC basis.
Reinstatement of 23 workers.

Minimum wage paid by Foxconn is $315 a month in China and $605 a month in Brazil.

But the starting monthly wage for members of the metalworkers' union in Jundiai is about 1,058 reais ($605) -- nearly double the 2,000 yuan ($315) minimum wage Foxconn paid in China as of last October. Those wage pressures are likely to make it hard for the iPad price to fall any time soon to a range that would give it the mass-market appeal it enjoys in the United States.

Insight: Dreaded Brazil cost may dim Foxconn's iPad dreams | Reuters

 

[SinoChallenger]

LOL........ you can pay indian labourers just 3000 to 4000 rupees a month = ~$60 US. Even in China, you need to pay RMB 3000 a month for an unskilled factory laborer = ~$500 US. And you have to pay for dormitory and canteen for employees.

No wonder the Arabs can find people in india willing to do slave labor in UAE.