India Inc will never catch up with China

Discussion in 'China' started by huaxia rox, Aug 9, 2012.

  1. huaxia rox

    huaxia rox Senior Member Senior Member

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    India Inc will never catch up with China - FT.com

    India’s business elite who show up at such events as the World Economic Forum’s meetings in Davos and similar confabs in New Delhi repeat like a mantra that the country’s demographic dividend is one of its advantages over China. Many of its politicians share this view. Kamal Nath, India’s flamboyant urban development minister, has argued that China will grow old before it becomes rich.

    Their thesis is that with millions of young people entering the labour force – at a rate of 12m annually – India’s growth rate is bound to surge as incomes and savings rise while China will soon face labour shortages due to its one-child policy.

    In a perfect world, this might be true, but India is a grotesquely unequal world where millions of children struggle to get enough food or a decent education.

    As many commentators tartly observed when the Indian government announced a mission to Mars last week, the country is home to about half the world’s severely malnourished children. Meanwhile, only 23 per cent of Indians have received secondary education – much of it of variable quality – while more than twice as many have in China. Where China has the challenge of getting more young people through college, India is still grappling with the problem of ensuring they don’t drop out – of primary school.

    The demographic hot air-balloon floated by many Indian businessmen, like the share prices of their companies, has begun to deflate. It turns out that India is not competing with China for manufacturing jobs after all. In the past couple of years, as China’s wages along the coast where its export industries are concentrated have been rising at about 20 per cent a year, low-end manufacturers have started moving elsewhere. This would seem an ideal time for India’s demographic dividend to be cashed, but the jobs making jeans and shoes are heading instead to China’s inland provinces, Vietnam, Bangladesh and Indonesia.

    China has done a good job of investing in education, says Arthur Kroeber, head of the economics consultancy Gavekal Dragonomics, which means that its young workers will continue to be productive well into their 60s. India, on the other hand, has not done enough. “So, its economic growth will be slower and it will have an even bigger problem than China when its population starts to age,” he says.

    Earlier this summer, as I waited to board an aircraft to Delhi, I bumped into Ranjan Mahtani, the Indian-born chief executive of Hong Kong-based Epic Group, which supplies clothing to Gap and Abercrombie & Fitch and which has 15,000 workers in Bangladesh. I had seen him a week earlier, when he complained that he was struggling to keep up with demand for this season’s fruit-coloured jeans.

    I thought Mr Mahtani’s trip might mean he was prospecting for a new factory. But Mr Mahtani was going to Delhi for just one night, to meet with the new head of a major US retailer and have dinner. He says he finds it easier to hire for large factories in Bangladesh, in part because of India’s stifling labour laws. But the poor quality of state education is arguably just as pernicious. A 2011 survey of government schools in India by Pratham, an education-focused non-governmental organisation, found that half the country’s Class 5 of 10-year-olds could not read a text suitable for children three years younger. The results were virtually unchanged from a few years earlier.

    Rukmini Banerji, head of Pratham in Delhi, told me that a senior government official in India’s education ministry had derided the findings, saying the organisation was obsessed with quantitative measurements of aptitude while ignoring “the native intelligence of the young ragpicker”. It may be hard not to admire the ingenuity of India’s street-smart ragpickers but surely it would be better if they were in school.

    India, however, is a country where government ministers in Bangalore rail against schools that teach in English rather the local language of Kannada, while placing their own children in those English-language schools.

    Delhi, meanwhile, seems the most cosseted capital in the world: the people who decide that India must attempt a mission to Mars live in vast colonial bungalows while the boys in the government school I visited in west Delhi sat on a grimy rug in a dingy room. The people who run the system really do live in another universe.
     
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  3. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Prophecy has been delivered, now bow down & beg for mercy!!
     
  4. afako

    afako Regular Member

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    Unless and unless the Communist, Abrahamic and Socialist Jackas*es are Erased. There can never be Mass Industrialization of the Country.
     
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  5. Ray

    Ray The Chairman Defence Professionals Moderator

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    Never say Never.

    People said that Communism will never be replaced in China.

    Even before Mao's dead body turned cold, the Chinese went into a berserk Ecstasy to prove Communism is all cock and bull nonsense and in such a glee, that even Americans would find it difficult tot digest!

    And now, China is a rip roaring capitalist country with corruption as its birthright!

    Each Commie leader is a capitalist including through proxies of their family as I had appended!
     
    Last edited: Aug 9, 2012
  6. huaxia rox

    huaxia rox Senior Member Senior Member

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    i knew the title of the worth reading article (at least i think worth reading) sucked indeed but i cant dont anything about it coz it is the original title......and most debates would be centerred at the title itself............and there it is............
     
  7. Ray

    Ray The Chairman Defence Professionals Moderator

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    Where I realised that article is skewed when it wrote

    If he is flamboyant, then one wonders what they will write of Vijay Mallya!
     
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  8. tony4562

    tony4562 Tihar Jail Banned

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    It would be premature to say that India will never catch up on China (probably will happen at least once in the next million years). But for the foreseeable future India is burdened with too many serious problems with no real solution in sight.

    I am however absolutely certain that this demographic divident argumet is a complete farce. Allow me to repeat again: too many people is never a good thing, this especially applies to India (also China), home to 1/5 of humanity with just 2% of world's total surface area.
     
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  9. Energon

    Energon DFI stars Stars and Ambassadors

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    Unfortunately far too many Indians believe this to be true; it isn't. It is the stifling policies such as labor laws and lack of land reforms which make it impossible to pursue industrialization that need to be eliminated, not all the groups you have mentioned above.... which conveniently happens to include everyone but the group you identify with.
     
  10. maomao

    maomao Veteran Hunter of Maleecha Senior Member

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    True, with rampant secularism, corruption and communism India will always remain behind. Spin doctors and proponents of secularism/corruption will give various diversionary excuses, however as of date we know the bitter reality of what ails India.
     
  11. LETHALFORCE

    LETHALFORCE Moderator Moderator

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  12. drkrn

    drkrn Senior Member Senior Member

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    mass industrialization will have its own negative .i suggest all to read the speech of mr.pranab mukhergee when he took the post of president
    Watch: Pranab Mukherjee's first speech as President - Rediff.com India News
    Trickle-down theories do not address the legitimate aspirations of the poor.
     
  13. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Industrial revolution has passed India by. India needs to look at the next revolutions coming in Information
    technology, stem cells and space mining/exploration etc... I think India is positioned not to miss these
    revolutions. Missing the industrial revolution was not entirely India's fault being in the grip of colonial
    rule. But get this Idea out that industrilization brings wealth this is not the case anymore. Industrilization
    is necessary to avoid imports and have basic necessities to the masses . But industrilization for the
    most part is cheap mass produced products that all third world countries are making themselves or
    buying from the king of mass produced low quality cheap goods-China.
     
  14. Energon

    Energon DFI stars Stars and Ambassadors

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    I agree with the article's conclusion. Frankly drawing comparisons between the economic growths of China vs India is an utter waste of time, and the biggest victim of this prolonged farce is India itself.

    By drawing comparisons with China many Indians are under the impression that the factor leading to the vast discrepancy is China's superior ability to clamp down on dissension by force and using autocratic means to implement quick change. While China's government and social set up allows this, India's does not. So instead of using its own system to make optimal use of its vast human resource and assets, the establishment and its people attempt to replicate the Chinese model which results in even more inefficiency, chaos and paralysis.

    As I have always maintained, India's problems are primarily structural, not social. The answer is to create an environment which fosters individual creativity and small business via open access to education, subsidized capital, competent regulation and the implementation of the rule of law; not aping authoritative governments by attempting to control all social and economic aspects of the nation and further restricting the liberties of the populace. The other fact remains that the people themselves are complicit because they are unaware of their own freedom and the role they need to play as citizens of a democratic nation. Instead of ensuring their rights by keeping the government's power in check and contributing toward increasing the productivity of the own society many people counter intuitively seek to worship political leaders with an autocratic bent.
     
  15. ice berg

    ice berg Senior Member Senior Member

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    Still have the habit of posting links to something you never read?:rolleyes:

    I can understand you dont usually read the article you post, but now you cant even bother to read the title?

    It says clearly "The myth of § 1,5 trillion...."

    Look up what myth means.

    From your own link:
    As per the official figures disclosed by Switzerland's central bank, the Swiss National Bank (SNB), total deposits of Indian individuals and companies with all the Swiss banks put together stood at about USD 2.5 billion at the end of 2010

    the Swiss banks have asserted that any statistics about black money "simply do not exist".

    No 'black money' statistics exist: Swiss banks - Times Of India

    Next time, I hope that you read the article, or at least the title before you post the links.
     
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  16. afako

    afako Regular Member

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    Congress Thugs and JNU Jackas*es are the Last People in the World to be talking about Industrialization.

    All the Countries who are Part o the Developed World only achieved because of Mass Industrialization and that too Specifically War Based Economies fighting World Wars for Years at a Strech. That's How they reached that Level of Industrial Scale.

    US used to make One Aircraft Carrier Per Month during WW2. That is the Level of Industrialization they have seen,

    Those Nations who could make a War Based Economy were Lucky even if they were the on the Winning Side or Loosing Side. They have booked their Future for Centuries to come.

    Just tell me What does China want to achieve by doing this?

    Chinese build skyscraper in just 15 days | Cutting Edge - CNET News

    It is not some Show Off. They are Stimulating a War Based Economy here!

    Mass Production of Essential Goods in the Least Possible Time in Discipline. (Something like the WW2 US War Machine)

    China knows Post Nukes, The same WW2 kind of War Machine cannot be created, Hence they are artificially doing it.

    You don't know because of these Congress B*tches We are missing so much. When China started Industrializing Post 1978, There was no one.

    Today When India is Industrializing, there is not only BRICS but also Vietnam, Indonesia and Bangladesh Competing with you! Get it?

    Right now We should be creating the World's Largest Port Infrastructure and 8 Lane Expressways connecting Entire Population of India to Ports (Remember 60% of Indian Population is Hinterland).

    What did Congress Thugs did?

    Spent $220 Billion on NREGA, Subsidies since 2004-2012.

    That should have been spent on creating Roads, Ports, Highways. That's the way you be doing.

    And When you are talking about Negative Effects of Industrialization, Do Remember that It is the Most industrialized Part of the Country(Bombay) which Single Handedly Pays Half of the Taxes of the Country!

    If you don't want to Industrialize, Live like Africans and Muslims with No Respect, No Good Quality of Life. Die like B*tches!
     
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  17. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    The myth is there is more than 1.5 trillion dollars in the video in the link it explains how the
    number is close to 7 trillion dollars much more than China has. If you would read without
    replying out of jealousy you would have realized it.
     
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  18. Ray

    Ray The Chairman Defence Professionals Moderator

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    Iceberg,

    You think you have hit the Titanic?
     
  19. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Chinese economy has advantages over India like MFN trade status by USA .
    Yes the Chinese economic is bigger but India with all it's structural problems still
    has more dollar holdings than China.China is way behind. This money brought
    back would help the economy greatly. BJP taskforce did a study in 2009 and they
    concluded that more than 3 trillion dollars of Indian black money is in switzerland
    and possibly 1 trillion in black money in luxembourg.

    Report of BJP Taskforce on Black Money in Swiss Banks
     
  20. Predator

    Predator Regular Member

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    written by Rahul Jacob
    Current
    * Senior Business Analyst at Thomson Reuters

    Since India is not "reforming" its economy as per the wishes of Rothschild's they use their publication Reuters to launch an verbal attack. Nothing new to see here.

    The day this dharti ka bhoj rothschild maar jayega tab saare sansaar main khushiyan hogi
     
  21. huaxia rox

    huaxia rox Senior Member Senior Member

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    so r u actually telling me swiss embassy in india is a liar???
    Swiss Embassy says black money estimates lack evidence

    and this article....r u telling me swiss as a nation is a liar nation??
    The Hindu : Business / Economy : India ranks 55th on foreign money in Swiss banks
     

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