Make in India: Fiat plans to manufacture luxury SUVs in the country & export to UK, Australia

[Kloitra]

To be honest the sad part is that these investments will not make a big difference in employement.

Almost all car factories in India/world are robotic and mechanized.

India's rigid and archaic labour laws, downright pathetic - thanks to our socialist past - further encourage all companies to use more mechanization rather than hiring more workers. This is the reason why India's growth is more capital intensive than labour intensive.

The backbone of labour hiring in India are the SME - Small and Medium Enterprises - not these global factories.

And unless and until we repeal and modify these labour laws, India will continue to have employement problems.

This big industries requires multiple smaller ones. A car factory would requires several smaller factories to manufacture parts. A service industry, not to mention the flow of money in the economy.

 

[Burhan Wani]

Depends, India probably graduates more engineers each year than total in Australia.
Would you say the same thing about China - cheap labor?

Bangladesh is probably cheaper than India, so is Africa.

Indian Gradutaes works in factories..Dude you are wrong. I think these initiatives sounds better for those men who cannot afford universities (undergraduates)

 

[Judge]

But how ? how these investment will not make a big difference in employment?

They will create employement no doubt, but nowhere the mass level of employement that is present in factories of China.

Ofcourse any such investment is more than welcome.

My point was that our labour is not being hired by companies and they are preferring to go the mechanized route. And a large part of the blame goes to the labour laws of India which are downright pathetic.

And we need mass employement of people in factories because a lot of people are coming from the farms to look for jobs in cities.

This Modi Government has promised Labour Law reforms - it remains to be seen whether he will be able to manage it or not. There is a very very entrenched and politically powerful lobby who does not want any change.

This big industries requires multiple smaller ones. A car factory would requires several smaller factories to manufacture parts. A service industry, not to mention the flow of money in the economy.

No doubt.
What you are referring to are called ancillary industries in the Automobile sector.
And yes, it is the ancillary industries which will bring in more employement.

My rant was against the current 'system' as it were.
I want PM Modi to succeed and change the labour law and land acquisition law. Labour Laws are single handedly responsible for the slow pace of industrialization of India.

 

[Burhan Wani]

It is impossible to teach new tricks to old monkeys. If you need mercenaries and Jihadis for hire that is the destination.
Now on topic, besides affordable labor it needs an business friendly environment and I think this is what BJP has been able to do. There was a very negative mindset among the investors regarding India...and to some extent Modiji has been able to reverse it. Overall a positive and economy friendly posture will bring in ventures like this. Good job...way to go

Modiji is not a policy maker.BTW Who supports BLA and BRa elements? Time to change you flags.

 

[Judge]

Indian Gradutaes works in factories..Dude you are wrong. I think these initiatives sounds better for those men who cannot afford universities (undergraduates)

No, many graduates also work in factories.

Ofcourse those are graduates who did their graduation from pathetic universities or just arranged for themselves to be passed by giving money without gaining any skills. Farzi universities.

 

[SpArK]

But how ? how these investment will not make a big difference in employment?

The multijet engine manufacturing units, the training centers for technicians, various procurement divisions and companies, export mechanisms, plant expansions, R&D centers etc will have newer employees .. dont ya think?

 

[Kloitra]

Indian Gradutaes works in factories..Dude you are wrong. I think these initiatives sounds better for those men who cannot afford universities (undergraduates)

My point was that skilled labor is available, in quantity. More than the developed countries you mentioned. It is one of the many requirements for businesses to settle in. Most important of them all being the ease of setting up one. Given India has been ranked near bottom in the world for ease of business, the 'make in India ' should be appreciated for how it is changing the government policies towards business, more than anything else.

 

[Burhan Wani]

Takes more than affordable labor, otherwise the investments would have come lot earlier. And in the similarly affordable neighboring countries too.

It should be appreciating for creating ease for business. Something that governments till now failed to do.

Yes these initiatives are economic but A key point for these joint ventures are Affordable labor. According to the Businessmen's point of view.

 

[Kloitra]

Modiji is not a policy maker.

But he is the one to force them in. The bureaucracy can dream up any policy they want, they need approval of political heads. All governments till now were reluctant, even afraid to do major reforms. Something Modi changed.

 

[Burhan Wani]

We also have our own share.And skilled peoples in India need less expense than their foreign counterpart

Thats why i am saying reason behind these initiatives are cheap labors.

 

[Kloitra]

Yes these initiatives are economic but A key point for these joint ventures are Affordable. According to the Businessmen point of view.

Why more FDI goes in China than countries cheaper than it? Why certain industries still exist in developed world?

 

[Jayanta]

Modiji is not a policy maker.BTW Who supports BLA and BRa elements? Time to change you flags.

For the bold part: I can understand your confusion. India has a democracy and in a true democracy the elected members are policy makers...and the PM heads the ruling party and is also a policy maker himself. Unlike Pakistan where "Jurnails" calls the shots.

Now the italics: Off topic...stick to the topic.

 

[OrionHunter]

And unless and until we repeal and modify these labour laws, India will continue to have employement problems.

Not only labor laws, but Land Acquisition laws too.

Why more FDI goes in China than countries cheaper than it? Why certain industries still exist in developed world?

Not anymore. Chinese labor is becoming more expensive. Soon the destination would be India.

 

[Jayanta]

Indian Gradutaes works in factories..Dude you are wrong. I think these initiatives sounds better for those men who cannot afford universities (undergraduates)

With a huge number of educated people with degrees the bar is always set high. If you consider the CAT exams, where almost 10-20 million appear the exams for few thousand seats. There is nothing wrong for a graduate working in factories as long as they are paid their due. "Dignity of labor"...dude you need to understand it. In India Graduation is the minimum requirement for post of clerk....so stop comparing your country with India.

 

[Burhan Wani]

No, many graduates also work in factories.

Ofcourse those are graduates who did their graduation from pathetic universities or just arranged for themselves to be passed by giving money without gaining any skills. Farzi universities.

These farzi graduates should be consider as "under graduates". LOL