Why high-tech item makers are shifting focus from China to India

[Brahmos_2]

High-tech item makers are shifting focus from China to India



New Delhi: High-tech product manufacturers from sectors like aero-space engineering are shifting their focus towards India from China due to the increasing cost of production in the neighbouring country, EEPC today said.

“Costs of manufacturing (in China) is no more cheap the way it used to be, with their banking under stress and the pressure on the government to cut rebates. “The Chinese firms are no more the top contenders for the global outsourcing.

This gives Indian engineering sector an opportunity,” EEPC India Chairman Anupam Shah said in a statement. Reuters Engineering Export Promotion Council (EEPC) said be it an aero-space engineering firm in Germany or an instrumentation giant in Canada, world leaders in high-tech manufacturing are shifting focus to outsourcing their critical supplies to India.

It said that to encash this sentiment, the council is organising a mega event in Mumbai in January next year to show-case India’s manufacturing prowess in high-tech items. “The India Engineering Sourcing Show, with projected participation of world’s top 300 buyers is billed as an international platform for clinching multi-million dollar deals,” it said. The four-day show will start from January 22.

The External Affairs Ministry is also being roped in for seeking larger participation through Indian missions in countries like Italy, Poland and Mexico. The engineering sector has emerged as the largest contributor to India’s total merchandise exports followed by gems and jewellery, textiles and chemicals. The shipments are expected to reach US 63 billion in the current fiscal, it added. The US and Europe together account for over 60 per cent of India’s total engineering exports.

http://www.firstpost.com/fwire/why-high-tech-item-makers-are-shifting-focus-from-china-to-india-1211273.html?utm_source=fwire&utm_medium=hp

 

[vivINDIAN]

trollers are gonna to shit all over your thread dude....get ready for it..
anyways good to hear it...we need to Improve our physical Infra first

 

[AirRodgers]

Indian are always thinking that if China labor cost increase than job will magically come to India.. For manufacturer to move to India they have to look at more than labor cost, supply chain, infrastructure( power and water, roads, port), labor laws etc..

For example if the US is looking for cheaper labor than China why would they go to India.. Just south of us is a country call Mexico who labor cost is cheaper than China. For the far east country like Japan and S Korea why would they move the manufacture to India when they have the south east Asian nation like Viet Nam, the Philippines etc..
All these country have better labor laws and much better infrastructure.. If a product is made it need to get to its customer and product made in India takes longer and cost more to get to its customer than product made else where.. Until India fix its 19th century infrastructure it will never become a manufacturing hub..I know Indian are working on their infrastructure but the slowness of their effort mean they are losing thousand of job that are leaving China to places like Mexico, Viet Nam, Philippines, Thailand etc... By the time India gets its infrastructure in order it might be too late as all the manufacturing job might be gone...

 

[Brahmos_2]

Indian are always thinking that if China labor cause increase than job will magically come to India.. For manufacturer to move to India they have to look at more than labor cost, supply chain, infrastructure( power and water, roads, port), labor laws etc..

If the US is looking for cheaper labor than China why would they go to India.. Just south of us is a country call Mexico who labor cost is cheaper than China. For the far east country like Japan and S Korea why would they move the manufacture to India when they have the south east Asian nation like Viet Nam, the Philippines etc..
All these country have better labor laws and much better infrastructure..

Do that country have something called 'talent pool' like India...????

 

[bolo]

trollers are gonna to shit all over your thread dude....get ready for it..
anyways good to hear it...we need to Improve our physical Infra first

It's called freedom of expression. Or is it only freedom of expression if people side with indians? hypocrites.

 

[MohitV]

will believe it when apple starts manufacturing units here in india

 

[bolo]

Do that country have something called 'talent pool' like India...????

Yes they do. In fact someone posted an article that tells the true side of indian engineers. find it. It basically say 80% of indian engineer grads have no understanding about basic engineer concepts.

 

[474474]

It's a good sign for the Chinese, this means their wages have gone up (which is closely related to standards of living and demand in the economy)
In the end it's more important that your citizens are happy, not that you're getting the most outsources by treating your people like slaves.

 

[vivINDIAN]

It's called freedom of expression. Or is it only freedom of expression if people side with indians? hypocrites.

there is difference between freedom of expression and trolling...
freedom of expression from everyone is welcomed

 

[AirRodgers]

Do that country have something called 'talent pool' like India...????

If you look at PISA 2009 score Mexico labor pool is better than India, well almost the entire world labor pool is better than India... BTW In the US Mexican worker are know for there work ethic they can out work any American.. A good labor pool as it is related to manufacturing is for a company to have access to workers( in large numbers) who can read/ write so they can communicate and read work instruction in a manufacturing environment. By this measure India is way behind in developing a manufacturing base labor pool, when comparing to most third world country.. Indian need to listen to
Amartya Sen

 

[Guynextdoor2]

Indian are always thinking that if China labor cost increase than job will magically come to India.. For manufacturer to move to India there hey have to look at more than labor cost, supply chain, infrastructure( power and water, roads, port), labor laws etc..

For example if the US is looking for cheaper labor than China why would they go to India.. Just south of us is a country call Mexico who labor cost is cheaper than China. For the far east country like Japan and S Korea why would they move the manufacture to India when they have the south east Asian nation like Viet Nam, the Philippines etc..
All these country have better labor laws and much better infrastructure.. If a product is made it need to get to its customer and product made in India takes longer and cost more to get to its customer than product made else where.. Until India fix its 19th century infrastructure it will never become a manufacturing hub..I know Indian are working on their infrastructure but the slowness of their effort mean they are losing thousand of job that are leaving China to places like Mexico, Viet Nam, Philippines, Thailand etc... By the time India gets its infrastructure in order it might be too late as all the manufacturing job might be gone...

very valid points. That's why I never get jumpy on news that business in china will miraculously come to India. Until there is more emphasis on infrastructure and fundamentals. We have a long way to go.

 

[armchairPrivate]

China is starting to retreating from picking the low hanging fruits to more the challenging and lucrative markets, a.k.a. domestic consumption, a.k.a. service sectors in China.

Also the US is starting to manufacturing these hi-tech products themselves using robots. Google has been making Moto X (mobile phones) in the US earlier this year. Apple is building a plant in the US to make Apple products.

The time is getting harder and harder to complete in this area for all the low labour cost countries.

 

[bolo]

China is starting to retreating from picking the low hanging fruits to more the challenging and lucrative markets, a.k.a. domestic consumption, a.k.a. service sectors in China.

Also the US is starting to manufacturing these hi-tech products themselves using robots. Google has been making Moto X (mobile phones) in the US earlier this year. Apple is building a plant in the US to make Apple products.

The time is getting harder and harder to complete in this area for all the low labour cost countries.

You're wrong. Manufacturing is the more lucrative market. Service industries like IT consulting is nothing compared to hardware manufacturing. Leave services industries to indians.

 

[[Bregs]]

Nothing will automatically come to India after leaving china, India will have to work towards it to make it investor friendly in all ways


Although Japan since last couple of years is definitely working towards shifting slowly many units to India apart from opening new ones

 

[armchairPrivate]

bolo^^^

Are you god? You are so arrogant. You know it all? You can say I disagree. You sounded like a brat.
Learn some manners boy. If your parents were too busy waiting tables and din't have time to teach you manners, then it is too bad.
.
.
And to respond to your opinion.
I only said low hanging fruits, I never said anything about ALL manufacturing. Making shoes, shirts, underwear, Christmas lights is not lucrative. Making passenger plane, medicine equipment, precision tools are.
Waiting tables is service, so is launching satellites for other countries. Not ALL service sectors are poorly paid.

China is moving towards the high paying service.

You did not take the time to read and try to understand what I wrote and couldn't wait to tell the world that you know everything.