Make in India fails to quench nation's dependence on made in China goods

[beijingwalker]

Make in India fails to quench nation's dependence on made in China goods

• Ananth Krishnan

• March 14, 2018
  
  

When 'Make in India' was launched more than three years ago in September 2014, one of the hopes was it would diminish, or at least dampen, India's increasing reliance on imports of Chinese machinery and equipment, which makes up a huge chunk of India's trade deficit.

But three years on, new numbers suggest this hasn't been the case. In fact, India's reliance on Chinese made goods has only grown.

While India's imports of Chinese machinery have risen by as much as 25 per cent in the three years since, it's exports to China have alarmingly remained stagnant- and in fact fell slightly - in the period from 2014 to 2017.

In 2017, India imported $68 billion worth of goods from China, a 16.5 per cent year-on-year rise, according to numbers released on January 12 by China's General Administration of Customs.

In 2014, the year Make in India was launched, India's imports were $54 billion. Since then, imports, mainly of Chinese machinery and equipment as well as pharmaceuticals, have risen 25 per cent.

So has India's trade deficit with China, which has risen from $37.8 billion in 2014 to $51.6 billion last year.

Two-way trade is up from $70 billion in 2014 to $84.4 billion, but the rise in trade has been entirely led by India's hunger for imports from China. Worryingly, in this time, India's exports to China have actually fallen.

India exported $16.4 billion worth of goods 2014, mainly low-end exports such as ores and yarn. Over three years, India's exports have registered no growth and in fact fell slightly to $16.3 billion last year, even as the deficit crossed $50 billion in China's favour.
https://www.indiatoday.in/india/sto...nce-on-made-in-china-goods-1188790-2018-03-14

 

[rajiv sharma]

Make in India fails to quench nation's dependence on made in China goods

• Ananth Krishnan

• March 14, 2018
  
  

When 'Make in India' was launched more than three years ago in September 2014, one of the hopes was it would diminish, or at least dampen, India's increasing reliance on imports of Chinese machinery and equipment, which makes up a huge chunk of India's trade deficit.

But three years on, new numbers suggest this hasn't been the case. In fact, India's reliance on Chinese made goods has only grown.

While India's imports of Chinese machinery have risen by as much as 25 per cent in the three years since, it's exports to China have alarmingly remained stagnant- and in fact fell slightly - in the period from 2014 to 2017.

In 2017, India imported $68 billion worth of goods from China, a 16.5 per cent year-on-year rise, according to numbers released on January 12 by China's General Administration of Customs.

In 2014, the year Make in India was launched, India's imports were $54 billion. Since then, imports, mainly of Chinese machinery and equipment as well as pharmaceuticals, have risen 25 per cent.

So has India's trade deficit with China, which has risen from $37.8 billion in 2014 to $51.6 billion last year.

Two-way trade is up from $70 billion in 2014 to $84.4 billion, but the rise in trade has been entirely led by India's hunger for imports from China. Worryingly, in this time, India's exports to China have actually fallen.

India exported $16.4 billion worth of goods 2014, mainly low-end exports such as ores and yarn. Over three years, India's exports have registered no growth and in fact fell slightly to $16.3 billion last year, even as the deficit crossed $50 billion in China's favour.
https://www.indiatoday.in/india/sto...nce-on-made-in-china-goods-1188790-2018-03-14

the game has just begun , modi need's another term to drastically cut imports from china and facilitate domestic industry .

 

[Goenitz]

the game has just begun , modi need's another term to drastically cut imports from china and facilitate domestic industry .

sometime i think this type of govt sucks... either person gets more than two terms or changing of previous govt plans needs Planning and Division decision rather than new PM....

 

[Jackdaws]

Can't compete with China on manufacturing. I was speaking to an importer who imports raw material from China in bulk. He said the prices are ridiculously low - it is almost as if with each container he imports, they are also sending him a $500 cheque.

I don't know how accounting works in China. But I look at prices of products and it is impossible to make products at certain price points - the Government must be giving some unrealistic subsidies. The other day I ordered a Qualcomm Certified Quick Charger from Aliexpress and it was for under $4. That's about Rs. 270. With shipping to India. They have to pay Qualcomm a certain royalty. How is this even possible? They are clearly selling the product at a loss.

Forget India - even a worn torn African nation will not be able to compete with China in manufacturing if the employees only worked for food.

I can only guess - but the state banks must be giving unrestricted access to capital to Chinese manufacturers with little or no oversight and not demanding a statement of accounts. At some point, it is going to be a big mess - because someone has to pay for all this and in likelihood it is going to be the Chinese people.

 

[Mirza Jatt]

As of now its not possible to completely cut the imports. You have to be naïve to dream that so early. BUT, as a Chinese scholar has rightly said... journey of a thousand miles starts with a single step. This is just that step. Glad that this step has been taken..long way to go... so Please keep patience.

 

[beijingwalker]

Forget India - even a worn torn African nation will not be able to compete with China in manufacturing if the employees only worked for food.

I can only guess - but the state banks must be giving unrestricted access to capital to Chinese manufacturers with little or no oversight and not demanding a statement of accounts. At some point, it is going to be a big mess - because someone has to pay for all this and in likelihood it is going to be the Chinese people.

The wage level in China now is pretty high and is still on the increase rapidly for years, only Indian employee just work for food.

 

[faithfulguy]

the game has just begun , modi need's another term to drastically cut imports from china and facilitate domestic industry .

How would he cut imports from China in the second term when he drastically increased imports from China in the first term.

 

[SBUS-CXK]

Can't compete with China on manufacturing. I was speaking to an importer who imports raw material from China in bulk. He said the prices are ridiculously low - it is almost as if with each container he imports, they are also sending him a $500 cheque.

I don't know how accounting works in China. But I look at prices of products and it is impossible to make products at certain price points - the Government must be giving some unrealistic subsidies. The other day I ordered a Qualcomm Certified Quick Charger from Aliexpress and it was for under $4. That's about Rs. 270. With shipping to India. They have to pay Qualcomm a certain royalty. How is this even possible? They are clearly selling the product at a loss.

Forget India - even a worn torn African nation will not be able to compete with China in manufacturing if the employees only worked for food.

I can only guess - but the state banks must be giving unrestricted access to capital to Chinese manufacturers with little or no oversight and not demanding a statement of accounts. At some point, it is going to be a big mess - because someone has to pay for all this and in likelihood it is going to be the Chinese people.

This is the first time I've heard - A backward agriculture country that is more hungry than North Korea; he has a high salary. Oh, I'm sorry, another India fantasy.

Can't compete with China on manufacturing. I was speaking to an importer who imports raw material from China in bulk. He said the prices are ridiculously low - it is almost as if with each container he imports, they are also sending him a $500 cheque.

I don't know how accounting works in China. But I look at prices of products and it is impossible to make products at certain price points - the Government must be giving some unrealistic subsidies. The other day I ordered a Qualcomm Certified Quick Charger from Aliexpress and it was for under $4. That's about Rs. 270. With shipping to India. They have to pay Qualcomm a certain royalty. How is this even possible? They are clearly selling the product at a loss.

Forget India - even a worn torn African nation will not be able to compete with China in manufacturing if the employees only worked for food.

I can only guess - but the state banks must be giving unrestricted access to capital to Chinese manufacturers with little or no oversight and not demanding a statement of accounts. At some point, it is going to be a big mess - because someone has to pay for all this and in likelihood it is going to be the Chinese people.

In India, the "assembled" products in India are likely to be expensive (because the technology parts are from China, worse infrastructure than Africa, lack of electricity, lack of skilled workers, and poor industrial foundations. of course. The most important is the 400 million illiteracy). But Indians are cheap.............and inferior

You don't have to pay Indian wages, just provide more food than NK.

India's Hunger Problem Is Worse Than North Korea, Bangladesh; Ranks 100 In Global Hunger Index
@Jackdaws @beijingwalker @ghameed

The wage level in China now is pretty high and is still on the increase rapidly for years, only Indian employee just work for food.

don't give a serious answer, don't provide any links, don't provide any video. The Indians have their own fantasies. This is their freedom, when they are seriously hungry even than North Korea, which is the only thing they have. - fantasies.

 

[beijingwalker]

There is a popular expression in the business world "whatever you can make, China can make it cheaper". It's based on efficiency and support of superb infrastructure.

 

[Novice09]

As of now its not possible to completely cut the imports. You have to be naïve to dream that so early. BUT, as a Chinese scholar has rightly said... journey of a thousand miles starts with a single step. This is just that step. Glad that this step has been taken..long way to go... so Please keep patience.

Patanjali is a classic example of potential the Indian companies have. I recently met an Micromax dealer (now a days he push to buy Oppo or Vivo) and asked him for Micromax phone. He told nth problems the Micromax phone have and kept insisting to go for vivo or OPPO.

Reason... they pay heavy margins to the dealer.

There phones r a big tool for intelligence gathering and data mining for CHINESE gov. and full or Trojan.

 

[SBUS-CXK]

There is a popular expression in the business world "whatever you can make, China can make it cheaper". It's based on efficiency and support of superb infrastructure.

Even Kenya is more advanced than India.
For example, railway technology.
India train - rubbish. Like a cow.
Kenya train - advanced. The maximum speed of 120km / 1h.

India railway

Kenya railway

@Jackdaws @beijingwalker @ghameed @faithfulguy @Iqbal Ali @Offshore
This is the difference between the advanced countries and the backward agricultural countries. The only thing in India is fantasy. But Kenya is an advanced technology.

@Jackdaws Your fantasy is different from the world.

 

[Mirza Jatt]

Patanjali is a classic example of potential the Indian companies have. I recently met an Micromax dealer (now a days he push to buy Oppo or Vivo) and asked him for Micromax phone. He told nth problems the Micromax phone have and kept insisting to go for vivo or OPPO.

Reason... they pay heavy margins to the dealer.

There phones r a big tool for intelligence gathering and data mining for CHINESE gov. and full or Trojan.

Basically Its about the margins. Public is willing to pay a little higher. Its actually the Dealers who find it cheaper to import from China due to the difference in cost. With more manufacturing sector growth , this will improve.

 

[patman]

Transfixing markets takes years to a decade, make in India is just a year old. So stop acting like a premature infant

 

[Jackdaws]

The wage level in China now is pretty high and is still on the increase rapidly for years, only Indian employee just work for food.

If wage level is high in China - then it means there are even more loans being given without accountability.

This is the first time I've heard - A backward agriculture country that is more hungry than North Korea; he has a high salary. Oh, I'm sorry, another India fantasy.

I don't speak gibberish. Please type in comprehensible English.

Patanjali is a classic example of potential the Indian companies have. I recently met an Micromax dealer (now a days he push to buy Oppo or Vivo) and asked him for Micromax phone. He told nth problems the Micromax phone have and kept insisting to go for vivo or OPPO.

Reason... they pay heavy margins to the dealer.

There phones r a big tool for intelligence gathering and data mining for CHINESE gov. and full or Trojan.

Micromax was also manufacturing in China through an OEM and just marketing here but they did eventually set up some manufacturing unit.

Even Kenya is more advanced than India.
For example, railway technology.
India train - rubbish. Like a cow.
Kenya train - advanced. The maximum speed of 120km / 1h.

India railway

Kenya railway

@Jackdaws @beijingwalker @ghameed @faithfulguy @Iqbal Ali @Offshore
This is the difference between the advanced countries and the backward agricultural countries. The only thing in India is fantasy. But Kenya is an advanced technology.

@Jackdaws Your fantasy is different from the world.

Spoken like a true brain washed communist -

no wonder we have to give refugee status to 100,000 + Chinese citizens. Now don't derail the thread - instead type something comprehensible.

 

[terranMarine]

Ofcourse slumdog land can't compete with the world manufacturer.