India salaries inch up, Chinese rise 11%

[AndrewJin]

Of course Chinese salaries are way ahead of India. China is the largest or 2nd largest consumer market for nearly all the big global brands and Chinese tourists are the biggest spenders in the world by a long way.

China is ahead of India in everything and that will continue to be so forever. I've said India will break up sometime this century as they will get their 'balkanisation' moment. Artificially created unions never last.

India won't EVER surpass China.

China's growth is inclusive and down-to-the-earth.....
Such grown is beneficiary to all and so tangible even in the poorest county...

Your sarcasm aside, a higher rise in salary will increase costs for cost centres. For both China and India, the real advantage was in lower salaries keeping the costs of production low. That shall slowly get eroded and manufacturing shift to countries with lower overall input costs.

It's a fight between productivity growth vs income growth.

 

[Hellfire]

Jobs are created by people. Once the people come out of agriculture, and skill they will automatically create jobs.

How? Please elaborate on this aspect!

In the end, people are just gonna skill up and move up the value chain with the help of technology.

Till what level? It is an era of multi-tasking and reduction in cost overheads. Why would companies hire a candidate with a single specialisation when they can hire another who has three and can pay him slightly more and cash outflow will be at the rate of 1.5 persons instead of 3? Will that make a sensible business model or won't it? If it indeed is more a sensible model, then is not the recruitment pyramid a steep one, wherein the mass pf unemployed form the base of the pyramid and employment is the tapering top?


@Joe Shearer you will enjoy this thread. Your comments/views?

 

[+4vsgorillas-Apebane]

Your sarcasm aside, a higher rise in salary will increase costs for cost centres. For both China and India, the real advantage was in lower salaries keeping the costs of production low. That shall slowly get eroded and manufacturing shift to countries with lower overall input costs.

Salaries are a small part of costs. Efficiency as well as possessing the entire ecosystem for manufacturing is more important. It might cost less to hire a person in India but will eventually cost more when inefficiencies cause the whole operation to produce less than the target or a poor or uncompetitive product.

 

[Hellfire]

Automation will bring in more money and enable the populace to either starve or propel themselves into the next tier of work and industry (like China). In the case of India, too many people and not enough work (especially in manufacturing) will result in a disdain for automation in order to retain extremely low paying jobs for the masses - like sugar cane farming. India is in a world of pain and if everyone is like you and advocating larger populations, the population 'dividend' will eventually turn into a mass of unemployable and idle people waiting to be fed by the state.

Agreed with your contentions as earlier. This is where the system of Collective farming is more sensible approach. The Co-operatives have done a better job than the individual efforts. Amul is an example of success in India.

Coming to your quoted post .... these symptoms are already available for those who want to see them. The number of people who are based on a system of state 'benefits' is tremendous. That is why the large figures of unemployment and poverty. Because the people are incentivised not to work or seek job. And they have no limit on production of kids. This is especially true for the Muslim population in India who have used religion as an excuse and have been ably followed by other religious groups now.

It is a problem with any welfare state that has a democratic governance model. That is why I admire the Chinese governance model (Communist only in name; even the 'kickbacks' and 'grease money' is paid to the party fund if what I hear is correct).

 

[Bussard Ramjet]

Of course Chinese salaries are way ahead of India. China is the largest or 2nd largest consumer market for nearly all the big global brands and Chinese tourists are the biggest spenders in the world by a long way.

China is ahead of India in everything and that will continue to be so forever. I've said India will break up sometime this century as they will get their 'balkanisation' moment. Artificially created unions never last.

India won't EVER surpass China.

Wasn't United States also basically artifically created?

Anyways your prediction is wrong.

Also never say never. Future can reap a lot of surprises. Japanese also used to say that the Chinese can never leap ahead of them.

 

[Hellfire]

Salaries are a small part of costs. Efficiency as well as possessing the entire ecosystem for manufacturing is more important. It might cost less to hire a person in India but will eventually cost more when inefficiencies cause the whole operation to produce less than the target or a poor or uncompetitive product.

Exactly. No two arguments about it. One needs to look at our power sector. The present Minister has worked hard and done a commendable job in provision and mobilisation of resources for optimal functioning of the power generating units. However, inspite of the production being 1.3 or so percentage points above the peak requirement this year (for the first time) the distribution 'inefficiencies' have taken a heavy toll on the overall performance.

 

[Bussard Ramjet]

Salaries are a small part of costs. Efficiency as well as possessing the entire ecosystem for manufacturing is more important. It might cost less to hire a person in India but will eventually cost more when inefficiencies cause the whole operation to produce less than the target or a poor or uncompetitive product.

Those have to be factored in.

A lot of competencies can be created, easily, with the right policies. And India is already heading in that direction.

Of course Chinese salaries are way ahead of India. China is the largest or 2nd largest consumer market for nearly all the big global brands and Chinese tourists are the biggest spenders in the world by a long way.

China is ahead of India in everything and that will continue to be so forever. I've said India will break up sometime this century as they will get their 'balkanisation' moment. Artificially created unions never last.

India won't EVER surpass China.

Wasn't United States also basically artifically created?

Anyways your prediction is wrong, come here to India, and I will show you around, from Mumbai where I live, and where Marathi is spoken, to Delhi, in our capital, to Kolkata in West Bengal, to Chennai in Tamil Nadu.

Indians are one in their unity.

 

[ito]

There are two thing that happened since 2008. India's economy grew by almost 70%, while salaries didn't grew at all. This could be because now companies employee more people for the same salary or the number of companies grew since 2008 that employee more people but for the same salary as the existing industry standards.

Unless India goes into the next productive stage the salaries will not change much. Skill India is the need of hour.

 

[AndrewJin]

In India and to a lesser (but still substantial) extent China, a lot of agriculture is done in small family run acreages that are extremely inefficient and totally lacking in scientific practices for crop yield and sustainability. It is much better to amalgamate farmland into larger and mechanized farming and having the rural populate be moved into cities and take on other forms of employment like factory work or better.

Just look at the plight of sugar cane farmers in India, there is little money but people have no other option but to do it inefficiently and poorly paid.

Automation will bring in more money and enable the populace to either starve or propel themselves into the next tier of work and industry (like China). In the case of India, too many people and not enough work (especially in manufacturing) will result in a disdain for automation in order to retain extremely low paying jobs for the masses - like sugar cane farming. India is in a world of pain and if everyone is like you and advocating larger populations, the population 'dividend' will eventually turn into a mass of unemployable and idle people waiting to be fed by the state.

For those mountainous regions where massive mechanisation is unrealistic, I would suggest "protected agriculture”, also called "controlled environmental agriculture". Actually 80% world's protected agriculture is in China. It can be also associated with new-energy...

Mechanised agriculture is ideal for rice, wheat, potato, etc...But for provinces like Guizhou, arable land per capita is small, high-yield protected agriculture for vegetable, fruits and Chinese medicine is highly recommended.


A video about how to grow sweet melon, by Central Agriculture Broadcast Television School

0:40 an example in Shuicheng County, Guizhou Province

1:40 grow Chinese medicine, Pingtang County, Guizhou Province

 

[Hellfire]

@PARIKRAMA your thoughts?

 

[Götterdämmerung]

Your sarcasm aside, a higher rise in salary will increase costs for cost centres. For both China and India, the real advantage was in lower salaries keeping the costs of production low. That shall slowly get eroded and manufacturing shift to countries with lower overall input costs.

To whom shall we sell our Beamers and Porsches if China remains poor? EU and US markets are saturated.

 

[Hellfire]

To whom shall we sell our Beamers and Porsches if China remains poor? EU and US markets are saturated.

I won't mind buying. But I don't have roads to drive on ...... too congested! Hence did not buy it

 

[AndrewJin]

I won't mind buying. But I don't have roads to drive on ...... too congested! Hence did not buy it

I don't have a car either at the moment...no need, public transport is good.

 

[Götterdämmerung]

In India and to a lesser (but still substantial) extent China, a lot of agriculture is done in small family run acreages that are extremely inefficient and totally lacking in scientific practices for crop yield and sustainability. It is much better to amalgamate farmland into larger and mechanized farming and having the rural populate be moved into cities and take on other forms of employment like factory work or better.

Just look at the plight of sugar cane farmers in India, there is little money but people have no other option but to do it inefficiently and poorly paid.

Automation will bring in more money and enable the populace to either starve or propel themselves into the next tier of work and industry (like China). In the case of India, too many people and not enough work (especially in manufacturing) will result in a disdain for automation in order to retain extremely low paying jobs for the masses - like sugar cane farming. India is in a world of pain and if everyone is like you and advocating larger populations, the population 'dividend' will eventually turn into a mass of unemployable and idle people waiting to be fed by the state.

Small family run farms and industrial agriculture both have their advantages and disadvantages. The best would be to combine small family run farms within a co-operative with high education, particularly knowledge in how to ensure sustainable high yield without depleting and poisoning the soil.

Plus, in times of war or major natural catastrophe, it's always good to have a sufficient amount of people who know how to grow food in the traditional way when petrol, electricity and fertiliser supply will be cut off.

 

[AndrewJin]

There are two thing that happened since 2008. India's economy grew by almost 70%, while salaries didn't grew at all. This could be because now companies employee more people for the same salary or the number of companies grew since 2008 that employee more people but for the same salary as the existing industry standards.

Unless India goes into the next productive stage the salaries will not change much. Skill India is the need of hour.

I think the report is about annual average real growth, growth minus inflation....Probably inflation in india is quite high?