India benefits as China begins to lose Manufacturing Edge

[bolo]

only make sense, Chinese per capita is close to 7,000, while India is more or less at 1,500.

With the right kind of staff, incentive and infrastructure, India would become more attractive to low level manufacturing, as cost is everything in this sector.

Though India must invest in education and infrastructure now, or it might not have the right ingredients, when China really starts to lose these low end jobs, maybe an ASEAN or African nation will take it away. Bangladesh is also making a case for moving it there.

Now if India plays her cards right, you can pull quite a few out of poverty.

Even so, China is going about it the wrong way trying to increase domestic consumerism and service industries when the majority of their manufacturing is not yet peaked. US lost it's manufacturing jobs in the late 80s when their GDP per capita was in the 20ks. China is not even half of that and the gov't is pushing for service industries?

For the record, jobs in manufacturing more often than not pay a lot more than service sector jobs.

PPP GDP per capita =/= Income level

No one outside of India uses PPP to calculate GDP.

 

[neehar]

2013

india uses 2004-2005 as base year.clearly china has percapita more than india but this change in base year makes percapita difference much higher than it actually is.

 

[ice bomb]

did'nt you read what iprovided??10% drop was only of january.1.2% rise is from april to jan.when u take month on basis you will find such high differences but when you take overall there is growth in imports.that 10% reductions is compensated by more than 10% growth in remaining months..

Prove that there is more than 10 % growth in remaining months.

 

[neehar]

Prove that there is more than 10 % growth in remaining months.

what??thats simple averages problem which a 7th class student can solve..there are 10 months in which one month noted depreciation and over all 10 months noted appreciation.what does that mean???plz dont ask me to teach averages to you.i have better things to do.

 

[ice bomb]

what??thats simple averages problem which a 7th class student can solve..there are 10 months in which one month noted depreciation and over all 10 months noted appreciation.what does that mean???plz dont ask me to teach averages to you.i have better things to do.

So according to you if Indian oil import in jan 2014 is 10 percent lower than jan 2013 and 1,2 percent higher in april -jan 2013-14 than you have 10 percent increase? No wonder Indians fare poorly in PISA.

heres what ministry of commerce says.
'Oil imports during January, 2014 were valued at US $ 13185.9 million which was 10.1
per cent lower than oil imports valued at US $ 14666.2 million in the corresponding period
last year. Oil imports during April-January, 2013-14 were valued at US $ 138144.0 million
which was 1.2 per cent higher than the oil imports of US $ 136498.1 million in the
corresponding period last year. '
Your original priceless statement:

did'nt you read what iprovided??10% drop was only of january.1.2% rise is from april to jan.when u take month on basis you will find such high differences but when you take overall there is growth in imports.that 10% reductions is compensated by more than 10% growth in remaining months

You started the year(2014) with 10 percent lower oil import than 2013.
Kid, we are in feb 2014 now.

 

[Genesis]

Even so, China is going about it the wrong way trying to increase domestic consumerism and service industries when the majority of their manufacturing is not yet peaked. US lost it's manufacturing jobs in the late 80s when their GDP per capita was in the 20ks. China is not even half of that and the gov't is pushing for service industries?

For the record, jobs in manufacturing more often than not pay a lot more than service sector jobs.

Manufacturing will continue to increase, it's just that in relationship to service sector, it seems not as fast. Manufacturing is also best for domestic consumption, as this adds to a more stable customer base and better builds brand loyalty, amongst other advantages.

India and the rest of the developing countries lack the roads and rails that China has, nor do they have the fleet of transport ships, the harbors capable of mass and efficient load and unload canisters. They also don't have the reputation China has built over the years for reliable(for the price, a lot harder than you think), on time and good service, as well as relationships and contacts we have over the world.

China building high speed rails isn't just for the sake of having it, it's also to increase freight traffic on the slower rails, which none of the other developing country has.

China has a stable government with consistent policies, also has talent as well as experience in abundance in terms of dealing with exporting and importing.

Chinese education level is high compare to other developing world, by 2020, 29 percent of post secondary graduates of the world will be in China, mean while the closes to China in terms of developing world will be 12%, India.

China and India to produce 40% of global graduates by 2020 - ICEF Monitor - Market intelligence for international student recruitment

These advantages China has will not disappear and will only increase with up to date policies(IE: free trade zones are increasing across China), more educated work force(see above), infrastructure(will double high speed rails and open up more for cargo trains, etc), and a host of other things I have discussed.

India and the rest of the developing world would take at least 2 decades for it to achieve a base that could offset the advantages that China has, and by then it would only be due to the high per capita that China will have, about 25,000 more or less.

**This isn't a negative slant on India or the developing world, if you have data or reliable projections that would suggest a faster growth in basic necessities for a manufacturing powerhouse, I would be open to it.

 

[cirr]

As China moves up the value-chain，it is bound to leave behind some crumbs（read heavily polluting manufacturing or low-value added sectors), India'd better do something and fast, for otherwise the crumbs will be picked up by countries such as Vietnam, Laos etc.

india uses 2004-2005 as base year.clearly china has percapita more than india but this change in base year makes percapita difference much higher than it actually is.

This is the funniest thing I have heard for a long time.

What base year do you think China uses for calculating its GDP？

By the way, 2015 will be the year in which China's GDP receives a major upward revision, Know why?

We all know that Indians come up with all sorts of excuses to cover up their incompetence, but you have gone too far.

 

[neehar]

As China moves up the value-chain，it is bound to leave behind some crumbs（read heavily polluting manufacturing or low-value added sectors), India'd better do something and fast, for otherwise the crumbs will be picked up by countries such as Vietnam, Laos etc.



This is the funniest thing I have heard for a long time.

What base year do you think China uses for calculating its GDP？

By the way, 2015 will be the year in which China's GDP receives a major upward revision, Know why?

We all know that Indians come up with all sorts of excuses to cover up their incompetence, but you have gone too far.

post #30.

So according to you if Indian oil import in jan 2014 is 10 percent lower than jan 2013 and 1,2 percent higher in april -jan 2013-14 than you have 10 percent increase? No wonder Indians fare poorly in PISA.

heres what ministry of commerce says.
'Oil imports during January, 2014 were valued at US $ 13185.9 million which was 10.1
per cent lower than oil imports valued at US $ 14666.2 million in the corresponding period
last year. Oil imports during April-January, 2013-14 were valued at US $ 138144.0 million
which was 1.2 per cent higher than the oil imports of US $ 136498.1 million in the
corresponding period last year. '
Your original priceless statement:


You started the year(2014) with 10 percent lower oil import than 2013.
Kid, we are in feb 2014 now.

did you notice that trade deficit reduced by 27.6% compared to previous year??do you know that petro imports are not the only criteria to measure a country's growth??did you realize that india has started exploration in its own oil and gas fields and petro imports are bound to decrease??
do you know that a financial year starts in april and ends in march??
Indian Economy: For Civil Services Examinations 5th Edition - Buy Indian Economy: For Civil Services Examinations 5th Edition by Singh R Online at Best Prices in India - Flipkart.com
its a good book for beginners.read it before quoting me any further.

 

[ice bomb]

post #30.

did you notice that trade deficit reduced by 27.6% compared to previous year??do you know that petro imports are not the only criteria to measure a country's growth??did you realize that india has started exploration in its own oil and gas fields and petro imports are bound to decrease??
do you know that a financial year starts in april and ends in march??
Indian Economy: For Civil Services Examinations 5th Edition - Buy Indian Economy: For Civil Services Examinations 5th Edition by Singh R Online at Best Prices in India - Flipkart.com
its a good book for beginners.read it before quoting me any further.

Do you notice that trade deficit reduction is mainly cause by curbs in gold import? Do you know that petro consumption is one of the most important indicators in an economy? Did you realize that indian oil production is nothing to write home about?

Hydrocarbons (DGH), said this figure represents what in industry parlance is termed reserve to production ratio. That is, India held reserves of about 761 million tonnes (mt) in April 2012 at a production rate of 38 mt per year.

India's oil reserves to last only for 20 years - Indian Express

India fares poorly not only against oil-rich regions like West Asia which have over 80 years of reserves in their kitty but also when compared with the global average of 50 years. As for natural gas, India's reserve to production ratio stands at around 31 years versus about 150 years in West Asia and the global average of 60 years.

Obviously I shouldnt expect much from someone who fail at basic PISA tests..

 

[neehar]

Do you notice that trade deficit reduction is mainly cause by curbs in gold import? Do you know that petro consumption is one of the most important indicators in an economy? Did you realize that indian oil production is nothing to write home about?

Hydrocarbons (DGH), said this figure represents what in industry parlance is termed reserve to production ratio. That is, India held reserves of about 761 million tonnes (mt) in April 2012 at a production rate of 38 mt per year.

India's oil reserves to last only for 20 years - Indian Express

India fares poorly not only against oil-rich regions like West Asia which have over 80 years of reserves in their kitty but also when compared with the global average of 50 years. As for natural gas, India's reserve to production ratio stands at around 31 years versus about 150 years in West Asia and the global average of 60 years.

Obviously I shouldnt expect much from someone who fail at basic PISA tests..

if you believe that reduction of trade deficit by curbing gold is a bad thing then thumbs up to your much obsessed PISA score.and if you believe that india's growth was stopped just because it has noted one month reduction in its oil imports conveniently ignoring the import growth in the overall months then salute to your common sense.god save your country from such high IQ people like you.regarding our reserves.we dont have much compared to west asia.but we have sufficient till we achieve double digit growth rates.mean time we're bidding for oil blocks across the globe to sustain our needs and diversify our needs from a range of solar,nuclear and bio fuels.i think 20 years is more than sufficient for that.india still has lot of potential.even though our growth rate is 5.5% we have 4 decades of time to grow.so we can afford a slow pace.but u hardly have a decade left and your country needs to grow all it can in this decade only.dependent population is increasing and demography dividend is decreasing in china.all the growth rates you are seeing now might just be a bubble.what happens when your consumer driven economy collapses??what happens when basic wages rise ??

 

[lcloo]

I really hope China will move away from all high labor low cost products manufacturing. Already at the moment Southern China is facing acute labor shortage and factories are "stealing" workers from others with high wages. Low cost products do not contribute much to national income anyway.

I worked in a Shenzhen factory for around 10 years, owner was North American. They allowed their subsidiary manufacturing companies in China to earn a maximum profit of 10%, the Hong Kong marketing company (another subsidiary company) earned 10%, and the rest of the profits were taken up by the parent company in North America (their gross profit margin could range from 50% to well over 100% depending on product item). American workers lost their jobs but the Company remained profitable by using Chinese labor. While their subsidiary in China pay income tax on a small reported profit of 10% only, which doesn't contribute much to the Inland Revenue.

 

[longlong]

Dream less, do more, friends....

 

[Chanakya's_Chant]

Dream less, do more, friends....

Yes of course but a much better example could have been given in this concern....

>> More Indian members than Chinese on this forum
>> High number of sources available on the net from India than from China
>> Believe me Pakistanis are much interested in Indian Defense than their own!
>> No language barriers - same language - much common culture

- The reason why Indian Defense is more discussed than Chinese one!