India's turn to become 'factory of the world': Chinese media

[proud_indian]

India's turn to become 'factory of the world': Chinese media
By PTI | 18 Aug, 2015, 08.15PM IST

Plans by China's phone maker Xiaomi and Taiwan's Foxconn to invest in India point to strong movement of Chinese firms to cash on growing Indian market.


BEIJING: It is now India's turn to emerge as the "factory of the world", according to an article in Chinese official media, citing the economic downturn in China forcing companies to turn to India for manufacturing.

Plans by China's phone maker Xiaomi and Taiwan's Foxconn to invest in India point to strong movement of Chinese firms to cash on growing Indian market.

Xiaomi Corp. launched its first made-in-India handset a week ago while its Redmi 2 Prime is being assembled by Taiwanese contract manufacturer Foxconn which has signed an agreement worth $5 billion to expand its R&D facilities in India, the article in Global Times said.

"Recent years have seen an increasing number of discussions about the relationship between China and India, raising questions about whether it is a complementary or a competitive one.

Xiaomi's recent moves would suggest that bilateral economic relations are moving toward complementary, it said.

The Modi administration is also trying to clear obstacles within the country, such as relaxing restrictions over foreign investments and knocking down bureaucratic hurdles. All these efforts have smoothed out the connections between the Chinese companies and the Indian market, it added.

"However, in the near future, bilateral economic relations won't be as reciprocal as we might hope. As economic ties strengthen, frictions will increase.

"Nonetheless, this is an unavoidable path for an emerging economy hoping to become the factory of the world. China has been there. Now it's India's turn," it said.

As China faces an economic downturn, the question of whether India will replace China as the factory of the world is being debated at length, especially when analysts predict India's economic growth rate will surpass China's in the coming years, the article said.

"The real challenge facing both countries is how to turn away from rivalry and focus on their ability to engage in economic transformation via cooperation rather than competition," it said.

India's turn to become 'factory of the world': Chinese media - The Economic Times

 

[proud_indian]

New Xiaomi phone reveals the future of the Sino-Indian economy

By Liu Xiaoxue Source:Global Times Published: 2015-8-17 19:53:01​

Illustration: A. Saeed

Chinese smartphone giant Xiaomi Corp. launched its first made-in-India handset on August 10. According to Xiaomi, the Redmi 2 Prime is being assembled by Taiwanese contract manufacturer Foxconn, famous for constructing Apple's iPhones. Foxconn has just signed an agreement worth $5 billion to expand its research-and-development facilities in India.

The news about Xiaomi's new smartphone indicates that the company has its eyes on the enormous Indian market and is gearing up to make a real move; in this regard, it is similar to many Chinese companies, and we can expect a strong movement toward Indian sales in the future.

Recent years have seen an increasing number of discussions about the relationship between China and India, raising questions about whether it is a complementary or a competitive one. Xiaomi's recent moves would suggest that bilateral economic relations are learning toward "complementary."

From China's perspective, it faces grave challenges imposed by a rapid rise in manufacturing costs. The existing economic model is no longer suitable for the Chinese economy. Labor-oriented manufacturers are leaving China to pursue cheaper labor costs elsewhere; consequently, industrial transformation is the only way for China to revitalize its economy.

Boasting a massive market and low labor costs, India has become a perfect arena for Chinese companies to transfer excess capacity or maintain low manufacturing costs.

From India's perspective, the emerging economy requires large-scale investments more than ever. From 2013 to the election of current Indian Prime Minister Narendra Modi in May last year, the Indian economy had entered a period of significant decline caused by a drop in investments due to entrepreneurs' lack of confidence in the Indian market.

Modi's response was the introduction of the "Make in India" campaign, designed to holistically enhance India's manufacturing capabilities.

During his inaugural year, Modi made more state visits to other countries than most of his counterparts across the world. Many of these trips were focused on economy and aimed to boost confidence in the Indian market and solicit as much investment as possible.

The Modi administration is also trying to clear obstacles within the country, such as relaxing restrictions over foreign investments and knocking down bureaucratic hurdles. All these efforts have smoothed out the connections between the Chinese companies and the Indian market.

However, in the near future, bilateral economic relations won't be as reciprocal as we might hope.

As economic ties strengthen, frictions will increase. Nonetheless, this is an unavoidable path for an emerging economy hoping to become the factory of the world. China has been there. Now it's India's turn.

As China faces an economic downturn, the question of whether India will replace China as the factory of the world is being debated at length, especially when analysts predict India's economic growth rate will surpass China's in the coming years. The real challenge facing both countries is how to turn away from rivalry and focus on their ability to engage in economic transformation via cooperation rather than competition.

Although geopolitical concerns are causing the Indian government to hesitate toward the China-led "One Belt, One Road" initiative, New Delhi has shown great interest in the economic benefits brought by the program. India plays an active role in both the Asian Infrastructure Investment Bank and the BRICS New Development Bank, both of which are endorsed by China.

India clearly knows that opportunities come only when it is willing to cooperate with China. As the largest emerging economies in the Asia-Pacific region, China and India share the same outlook for economic prosperity.

The author is an associate research fellow at the Institute of Asia-Pacific Studies at the Chinese Academy of Social Sciences.opinion@globaltimes.com.cn

New Xiaomi phone reveals the future of the Sino-Indian economy - Global Times

 

[mujhaidind]

Few years back I bought a Chinese iphone clone. 3 weeks later the thing just exploded while it was charging.

Hope we offer quality products.

 

[Ragnar]

China hates manufacturing anyway. They are more interested in Agriculture now.

 

[surya kiran]

Had bought a Xiaomi. Damn awesome phone. Loved it. Till I put in my pant pocket and went to the beach, forgetting it was there

If the Chinese and Taiwanese are going to create jobs, they are more than welcome.

 

[Maira La]

Few years back I bought a Chinese iphone clone. 3 weeks later the thing just exploded while it was charging.

Hope we offer quality products.

You get what you pay for. Chinese businessman were smart enough to realize there's a market of low quality fake iPhone buyers.

Better products will be pricier, and those with money will go for renowned international brands anyway. You Indians have to find a niche for yourself, and that's what the Chinese did with their fake products - target people who don't have the money to buy the real stuff.

 

[surya kiran]

You get what you pay for. Chinese businessman were smart enough to realize there's a market of low quality fake iPhone buyers.

Better products will be pricier, and those with money will go for renowned international brands anyway. You Indians have to find a niche for yourself, and that's what the Chinese did with their fake products - target people who don't have the money to buy the real stuff.

There are levels of quality. There are Chinese brands which are really good. There are fake Chinese products too. Depends on how deep is your pocket.

Was talking with an importer from China and he told me, the Chinese chap asked, "DO you want Asian, American or European quality?" Looked the same, but the European one had the best quality.

 

[RazorMC]

As far as quality goes, some Indian brands like Micromax are complete crap, while others like Intex are much better.

IMO, India has the industrial capacity as well the human resource to increase production many times over.

But no country can replace China's capacity seeing that they have already began completely automated mass manufacturing, negating the need for human workers even on the assembly line.

 

[desimorty]

But no country can replace China's capacity seeing that they have already began completely automated mass manufacturing, negating the need for human workers even on the assembly line.

You can only take out so many people. The real advantage of Chinas manufacturing is its ability to do it on mass. Entire cities, manufacture only the same product of different variations like facets, phone cases and the other small stuff. This reduces cost but what you get is a over bloated capacity which i'd say is the current problem. They were thinking large scale but people and jobs are moving up a the ladder change, it labour costs and quality is increasing a sign that they they are nearing middle income majority.

 

[INDIAISM]

I think our first aim should be Make For India...

 

[sumoto]

As far as quality goes, some Indian brands like Micromax are complete crap, while others like Intex are much better.

IMO, India has the industrial capacity as well the human resource to increase production many times over.

But no country can replace China's capacity seeing that they have already began completely automated mass manufacturing, negating the need for human workers even on the assembly line.

Lol have you even used micromax? or its just hot air.
It is no 1 brand in India.
The Chinese makers like lenovo and xiami are not even close to what micromax has achieved in market occupation.
Micromax has over 22% of market occupation while xioami has mere 2%.
And Intex is also a Indian brand.
So that speaks for so called 'quality' of Indian brands.
You should continue to enjoy the brands which come from your father i.e, Chinese brands.

 

[proud_indian]

Lol have you even used micromax? or its just hot air.
It is no 1 brand in India.
The Chinese makers like lenovo and xiami are not even close to what micromax has achieved in market occupation.
Micromax has over 22% of market occupation while xioami has mere 2%.
And Intex is also a Indian brand.
So that speaks for so called 'quality' of Indian brands.
You should continue to enjoy the brands which come from your father i.e, Chinese brands.

micromax, intex are all rebranded Chinese produts

their oem is in china itself

 

[BDforever]

India's turn to become 'factory of the world': Chinese media
By PTI | 18 Aug, 2015, 08.15PM IST

Plans by China's phone maker Xiaomi and Taiwan's Foxconn to invest in India point to strong movement of Chinese firms to cash on growing Indian market.


BEIJING: It is now India's turn to emerge as the "factory of the world", according to an article in Chinese official media, citing the economic downturn in China forcing companies to turn to India for manufacturing.

Plans by China's phone maker Xiaomi and Taiwan's Foxconn to invest in India point to strong movement of Chinese firms to cash on growing Indian market.

Xiaomi Corp. launched its first made-in-India handset a week ago while its Redmi 2 Prime is being assembled by Taiwanese contract manufacturer Foxconn which has signed an agreement worth $5 billion to expand its R&D facilities in India, the article in Global Times said.

"Recent years have seen an increasing number of discussions about the relationship between China and India, raising questions about whether it is a complementary or a competitive one.

Xiaomi's recent moves would suggest that bilateral economic relations are moving toward complementary, it said.

The Modi administration is also trying to clear obstacles within the country, such as relaxing restrictions over foreign investments and knocking down bureaucratic hurdles. All these efforts have smoothed out the connections between the Chinese companies and the Indian market, it added.

"However, in the near future, bilateral economic relations won't be as reciprocal as we might hope. As economic ties strengthen, frictions will increase.

"Nonetheless, this is an unavoidable path for an emerging economy hoping to become the factory of the world. China has been there. Now it's India's turn," it said.

As China faces an economic downturn, the question of whether India will replace China as the factory of the world is being debated at length, especially when analysts predict India's economic growth rate will surpass China's in the coming years, the article said.

"The real challenge facing both countries is how to turn away from rivalry and focus on their ability to engage in economic transformation via cooperation rather than competition," it said.

India's turn to become 'factory of the world': Chinese media - The Economic Times

I don't approve it

 

[sumoto]

micromax, intex are all rebranded Chinese produts

their oem is in china itself

Yep but they have shifted their manufacturing base in India slowly slowly they will shift the whole manufacturing ecosystem here.
Because they cannot sustain the import duty hiked by India on imported Chinese electronics product which will hike their product costs which will make their product non competetive in the markets.
That's why you see Xiaomi and Lenovo turning to India for manufacturing their 'handsets' to sell them in India.

 

[Chanakya's_Chant]

Three very important factors to be kept in mind while examining the progress of "Make in India" -

(01) Indirect Tax Collections - Indirect tax collections in India rose by 39.2 per cent this fiscal with excise mop up almost doubling, a trend that is reflective of a pick up in manufacturing activity.

Indirect tax collections up 39%; excise reflects manufacturing uptick - The Economic Times

(02) Index of Industrial Priduction (IIP) - IIP figures may not be exceptionally high BUT they are sufficiently way better than what we used to have in the earlier fiscals and so is the inflation - CPI and WPI - are cooling down gradually well within tolerable limits.

Inflation cools, IIP jumps to 4-month high - The Times of India

(03) Foreign Institutional Investment (FII) & Foreign Direct Investment (FDI) - FII inflows surged a record 717 per cent to $40.92 billion in 2014-15 and FDI inflows jumped 48 per cent since Prime Minister Narendra Modi launched the ‘Make In India’ initiative in September 2014. In fact India for the first time in the last 10 years entered the Top 10 FDI destinations in the World at #9 (From #13 last Year) and ranked #1 Baseline Profitability Index at the same time.

Big surge in FII inflows in 2014-15 - The Hindu
'Make in India' launch sees 48 percent increase in FDI equity inflows | Business Standard News

India is on the right path - but crucial big ticket reforms like the GST bill is the need of the hour - GST is extremely important for "Make in India" and should be implemented by 1st July 2016 - it alone has the potential to boost the Indian Economy (GDP Growth) by 1-2%.

Bottom line is - The Lion is Roaring!