Re: India to be world's factory hub, says Samsung's president & CEO BD
Sometimes India really boggles my mind...
When you have a population of 1 billion people - either the private sector or the government should be able to develop industries like Home appliances, Networking equipment, Industrial machinery, etc.
For instance - why can't India develop an Indian equivalent of Huawei or Cisco ?
Isn't it amazing that there is not a single networking hardware manufacturer in India other than the small Tejas Networks.
You already have a huge captive market.......so even if you are not internationally competitive for a few years.....you can still develop your business thru government contracts.
These are the types of industries that would provide thousands of jobs, both blue and white collar.
India needs hardware manufacturing but not the type of low-end stuff with razor thin margins like cell-phones or PCs.
India will never be competitive in that kinda market.
It needs smaller companies that make industrial systems that cost more and can deliver bigger margins.
I share your mind on the matter - my take believe it or not is the same old c-word , yeah corruption
Not only in the sense of actual money not going to where it should but the even more basic corruption of
not only putting self above nation but even worse, no thought or care whatsoever for the well-being of the nation
I'll not say more than that other than to say think it through , if you would
But i find some contradiction in your post - so perhaps you might help clarify ? On the one hand you prefer that India
had developed a company like Huawei then further down you state that India should not go done the road of cell-phones and computers given that the margins are razor thin ...so which is it ? Could it be that the Tatas and Ambanis and others foresaw that the margins are indeed razor thin and decide against having and Indian Huawei ?
not challenging you ... but just giving an opportunity for clarification.
..
( Coming back ) - ....Up to and including today, India has merely been surviving - sure some individuals and families have become mighty rich - but the nation as a whole - the progress has been inching forward when really it could have been a lot more - a great deal more - we could really have outdone China , but it is not so
we need to give Modi about 3 years to see if he has begun to make paradigm changes - otherwise it is
going to be merely more of the same .
Let's have some patience. 5 Years to check it again, to see if India has take China's place to become the world's factory hub. But I must say that I have see some article like this some years ago, but it still hasn't become reality now.
5 years is just the start - and i dont think India will really take high end stuff away
from china within 5 years - just peripheral stuff more likely , but it would be a sign of more to come ..If India can show investors that the first 5 years are profitable for them - then watch it - the change will move much faster after that - so the first 5 years are crucial but not the end - just the beginning .
it's true that the era of China being the world factory will end, but doesnt mean the end of Chinese economy development. We will find another way.
Sent from my HUAWEI T8951 using Tapatalk 2
Just as China took jobs away from the USA, and Europe so too will Indian and other nations take away from China .
But just as there still is an economy in the USA and Europe - so too will there be one in china .
However it may not be quite as extensive as it was - just as in the USA and in Europe where they lament that many manufacturing and shipyard jobs are no longer there but have been sent out to Asia.
No it wont be the end of China, no way - but it might be less prosperous
And for the subject of this thread, the key is productivity. The USA's salary is even higher than China, but some business is still profitable in the USA. That is because it has better infrastructure and better trained workers so even the salary is high, it is still profitable. And that is still reasonable in the China-India thing.
The business man is smart, they will do a business lossing money. And their work will make the resource and business location optimized. Let's see how the world industry optimized in the coming years.
I think if there are any country can take China's place, it is India. because other country just don't have enough human power. But that need better infrastructure, better education, better trained work force, discipline, and a whole system. Now Modi has been chosed, I think it is a correct choice. But it still need time, and at the same time the world is not static, other country are also evolving. When you take some business from China, perhaps China has also take some business from the USA. Who knows, only time can give the real result.
no it is not productivity in isolation because at the height of the era when manufacturing jobs were being
shipped from the usa to china , in fact productivity in the usa was far higher than the other .
the absolute cost of wages was most certainly a critical factor in sending those jobs away to china ....as it is the main reason for consideration to do likewise again - from china to elsewhere.
Besides all this debate going on , not one has considered the political and strategic factors - only economic factors
have been discussed so far ......?