India to be world's factory hub, says Samsung's president & CEO

[mylegend]

Foreign business enjoy lower tax rate in Special Economic Zone, if you are half foreign half domestic, you enjoy even more. Regulatory hurdle will be clear for foreign investment. Those are just some of the basic one. Infrastructure investment often overlooked. It is a type of incentive for foreign. Indian style electricity failure was rare in the period of Chinese development. Much of investment came from Hong Kong and Taiwan after China opened up. Road and bridges are widely built and is repaid with toll. Majority of Chinese highway are toll even till today.

 

[mylegend]

Re: India to be world's factory hub, says Samsung's president & CEO BD

One of main Indian problem is lower saving rate compare to east Asian nations, low saving rate means lack of domestic investment. There is no such thing as consumption driven growth, national income growth is driven by increased productivity. Productivity growth occur naturally with technical advancement, but without investment, the growth will be limited. India want the best of both world, consumption today and growth tomorrow. This is against main economic theory. Naturally, high growth meant high saving and less consumption today and more growth tomorrow. Only way to make up the gap for low saving is to attract foreign investment, however, Indian are never fully eager in attracting FDI with its red tape. FDI is ideal for economy because unlike foreign loan, they can only go toward investment, investment today means higher productivity growth.

 

[Srinivas_K]

Re: India to be world's factory hub, says Samsung's president & CEO BD

One of main Indian problem is lower saving rate compare to east Asian nations, low saving rate means lack of domestic investment. There is no such thing as consumption driven growth, national income growth is driven by increased productivity. Productivity growth occur naturally with technical advancement, but without investment, the growth will be limited. India want the best of both world, consumption today and growth tomorrow. This is against main economic theory. Naturally, high growth meant high saving and less consumption today and more growth tomorrow. Only way to make up the gap for low saving is to attract foreign investment, however, Indian are never fully eager in attracting FDI with its red tape. FDI is ideal for economy because unlike foreign loan, they can only go toward investment, investment today means higher productivity growth.

Indians like Chinese save more than half of their earnings. Indian public have the largest Gold reserves in the world.

 

[nimo_cn]

Re: India to be world's factory hub, says Samsung's president & CEO BD

India is trying to sustain its development. Who said we are making an export based economy? We are trying to struck a balance between economic growth and stability .
India never gives foreign companies full authorities for production.
We want foreign companies to invest in India not just for money or employment , but for making local companies more competitive too.

As far as your country is concerned, I believe China is going in right direction with increasing domestic demands and making local companies globally competitive. But many obstacles lay ahead.

Look at the title, if making India the world factory hub is not building a export based economy, then what else is?

Despite being an export based economy as many have claimed, Chinese economy is also driven by domestic demand, China has been the largest market to many major products. The money earned by being the world factory for the last 30 years is making Chinese life better. In fact, it's process India should also go through.

Sent from my HUAWEI T8951 using Tapatalk 2

 

[Dhairya Yadav]

Re: India to be world's factory hub, says Samsung's president & CEO BD

Look at the title, if making India the world factory hub is not building a export based economy, then what else is?

Despite being an export based economy as many have claimed, Chinese economy is also driven by domestic demand, China has been the largest market to many major products. The money earned by being the world factory for the last 30 years is making Chinese life better. In fact, it's process India should also go through.

Sent from my HUAWEI T8951 using Tapatalk 2

India is following both forms of economic systems- Socialism and Capitalism. Socialism provides economic stability while capitalism provides economic growth. Anyone of these become too much (mainly socialism) becomes a threat to economy.

And as far as the title is concerned, India does aim to become an Industrial hub, but most of our revenue will still come from agriculture and service sector. So , you cannot call our economy export oriented.

Only in recent years Chinese economy is served by domestic demands, which is still not enough to sustain economic growth. In India, Economic Growth and Domestic demand go hand in hand, Which is the way to go for stable economy. Accepted that in recent years our economic growth is flat lined, but that was just due to faulty Govt. policies.

If domestic demand in China was enough, you wouldnt have such a massive debt, would you?

 

[mylegend]

Re: India to be world's factory hub, says Samsung's president & CEO BD

India does save alot, it is between 28-32% of their gdp from 2009-2013. However, this is still lower than the rate of other East Asian nations during developing period. Furthermore, saving gold does not help development, only saving in Bank turns into investment.

 

[Ray]

Re: India to be world's factory hub, says Samsung's president & CEO BD

What bubbles are you refering to? Whatever Indians are doing, we have done it for 30 decades. Every ten years, people like you are gonna jump out and tell the world that China is gonna collapse. But nothing happened, China is still growing despite all the conspiracy theories.

It's true that low end manufacturing is moving out of China, but doesnt represent the end of Chinese economy, instead It's a natural process of economy development.

China used be a perfect destination for labor intensive industry because Chinese people were extremely poor, people were willing to work at extremely low wages.

However, people are getting rich, wages are also climbing, which in fact is good thing even if it means less sweatshops. People getting rich is the main purpose of economy development. If the off-springs of Chinese peasant workers have to work like their fathers in the same factories, then that means there is no growth in China at all.

Sent from my HUAWEI T8951 using Tapatalk 2

If you don';t understand the bubble, then let the deluge sink you.

The West tells all that China will burst.

India could not care less what happens to or in China..

 

[nimo_cn]

Re: India to be world's factory hub, says Samsung's president & CEO BD

If you don';t understand the bubble, then let the deluge sink you.

The West tells all that China will burst.

India could not care less what happens to or in China..

the west also tells that India wouldnt survive as a united nation.

if you couldnt care less, then refrain yourself from commenting on China.

Sent from my HUAWEI T8951 using Tapatalk 2

 

[Ray]

Re: India to be world's factory hub, says Samsung's president & CEO BD

the west also tells that India wouldnt survive as a united nation.

if you couldnt care less, then refrain yourself from commenting on China.

Sent from my HUAWEI T8951 using Tapatalk 2

You display your poor grasp of the English language when you write - if you couldnt care less, then refrain yourself from commenting on China because:
I had written - India could not care less what happens to or in China.

Sadly, most oddly you feel that I am India. It is India which could not care less about China and not me.

This na cheez is but only a human being of India and does not possess the audacious boorishness to claim to be 'India', unlike the Chinese posters who feel that they are 'China'.

 

[cw2005]

Re: India to be world's factory hub, says Samsung's president & CEO BD

because:
I had written - India could not care less what happens to or in China.

Ray, when you spoke on behalf whole India (May be Modi could do that), people might refer "you" as "India".

I had come to this forum to enjoy healthy argument. Please refrain from going back to "Indian English is better than Chinese English" mentality.

 

[nimo_cn]

Re: India to be world's factory hub, says Samsung's president & CEO BD

You display your poor grasp of the English language when you write - if you couldnt care less, then refrain yourself from commenting on China because:
I had written - India could not care less what happens to or in China.

Sadly, most oddly you feel that I am India. It is India which could not care less about China and not me.

This na cheez is but only a human being of India and does not possess the audacious boorishness to claim to be 'India', unlike the Chinese posters who feel that they are 'China'.

You are not India, but you are part of India. India is made up of millions of people like you, when we say "India couldnt care less", it is safe to deduce that you, as part of India, couldnt care less, either.

Sent from my HUAWEI T8951 using Tapatalk 2

 

[CrYsIs]

Re: India to be world's factory hub, says Samsung's president & CEO BD

India is following both forms of economic systems- Socialism and Capitalism. Socialism provides economic stability while capitalism provides economic growth. Anyone of these become too much (mainly socialism) becomes a threat to economy.

Socialism provides economic stability,since when ?

And as far as the title is concerned, India does aim to become an Industrial hub, but most of our revenue will still come from agriculture and service sector. So , you cannot call our economy export oriented.

meaning it will continue to remain a backward country

Only in recent years Chinese economy is served by domestic demands, which is still not enough to sustain economic growth. In India, Economic Growth and Domestic demand go hand in hand, Which is the way to go for stable economy. Accepted that in recent years our economic growth is flat lined, but that was just due to faulty Govt. policies.

Speculations are mere speculations,India's economy has always fluctuated,with upward movement sometimes and downward spiralling most of the times where as China has kept it's momentum for the past 3 decades.So how to you predict that China will fall apart economically and India will grow exponentially without any hiccups ?

 

[Ray]

Re: India to be world's factory hub, says Samsung's president & CEO BD

You are not India, but you are part of India. India is made up of millions of people like you, when we say "India couldnt care less", it is safe to deduce that you, as part of India, couldnt care less, either.

Sent from my HUAWEI T8951 using Tapatalk 2

Of course, I am in India and a part of India.

And that is the beauty of democracy and India.

I don't have to act like a robot to toe the Govt or party line.

Therefore, I speak for myself and express a free opinion unlike those in China, who will be in the Laogai at the will of the CCP if they do not show false and contrived nationalism as dictated to them by the CCP.

 

[Dhairya Yadav]

Socialism provides economic stability,since when ?

Please read history of socialism. As long as the money stays in the country, economy is stable, but no growth.

So, what you mean to say that agriculture, service sector is backward? Then half of the west is backward too by your thinking.

If you call having a debt of $3.6 trillion (and counting), slowing industrial growth for past 3 years, housing crisis, need to introduce massive stimulus programs, keeping its momentum, then i have nothing more to say. And Im sure that I didnt say that Indian economy will grow without any hiccups, did I ? No lies please. And just for your Info, check avg economic growth rates of India after 1991 till 2008.

I particularly find it funny that you think agriculture is backward. Lemme ask a question , which stateS has the lowest poverty, highest wages in India ? HARYANA - PUNJAB

 

[CrYsIs]

Please read history of socialism. As long as the money stays in the country, economy is stable, but no growth.

Thanks for using "socialism" and history" in the same line.Socilalism is history and if you still stick to it when most of it's hardened supporters have abandoned it,you would end up becoming another north korea.

How does the money stay in the country when there is no money generation ? Socialism does spread equality but equality of poverty and misery.

The fact that India has remained a backward primitive country for so long can solely be attributed to socialism.

So, what you mean to say that agriculture, service sector is backward? Then half of the west is backward too by your thinking.

You completely misunderstood my statement.Excessive reliance on agriculture is not good for an impoverished country like India.In India almost 60% of population works in Agricultural sector,a sector which is prone to natural calamities,environmental disasters,weather change,droughts etc and is just 17% of our GDP.Just one year of under productivity would push millions to the brink of starvation.

So what i am basically saying is that India has a huge manpower surplus in the agriculture sector.They should be shifted to much needed sectors like Manufacturing..

Also service sector is a hi end sector which requires high qualifications and a lot of technical know how and therefore pushing india's impoverished sections to the service sector would be impossible.Without manufacturing India has no realistic chance of escaping poverty.Also Service sector mostly benefits the middle class and not the impoverished masses.

And just for your Info, check avg economic growth rates of India after 1991 till 2008.

Yes i checked it,it averages around 6.5%,much lower than the required rate of 8%.

I particularly find it funny that you think agriculture is backward. Lemme ask a question , which stateS has the lowest poverty, highest wages in India ? HARYANA - PUNJAB

All of India is not the same case.Each and every state is different from each other.Most small states like Punjab and Haryana with small population can sustain only with agriculture but the same cannot be said for a state like UP or Bihar with impoverished majority and an exploding population.

A state like kerala can survive solely on tourism and remittance but if kerala's economic model is applied to other parts,then rest assured India would turn to Somalia.

 

[Dhairya Yadav]

Thanks for using "socialism" and history" in the same line.Socilalism is history and if you still stick to it when most of it's hardened supporters have abandoned it,you would end up becoming another north korea.

How does the money stay in the country when there is no money generation ? Socialism does spread equality but equality of poverty and misery.

The fact that India has remained a backward primitive country for so long can solely be attributed to socialism.



You completely misunderstood my statement.Excessive reliance on agriculture is not good for an impoverished country like India.In India almost 60% of population works in Agricultural sector,a sector which is prone to natural calamities,environmental disasters,weather change,droughts etc and is just 17% of our GDP.Just one year of under productivity would push millions to the brink of starvation.

So what i am basically saying is that India has a huge manpower surplus in the agriculture sector.They should be shifted to much needed sectors like Manufacturing..

Also service sector is a hi end sector which requires high qualifications and a lot of technical know how and therefore pushing india's impoverished sections to the service sector would be impossible.Without manufacturing India has no realistic chance of escaping poverty.Also Service sector mostly benefits the middle class and not the impoverished masses.




Yes i checked it,it averages around 6.5%,much lower than the required rate of 8%.



All of India is not the same case.Each and every state is different from each other.Most small states like Punjab and Haryana with small population can sustain only with agriculture but the same cannot be said for a state like UP or Bihar with impoverished majority and an exploding population.

A state like kerala can survive solely on tourism and remittance but if kerala's economic model is applied to other parts,then rest assured India would turn to Somalia.

I did mention that a country like India needs both Socialism and Capitalism. The optimum ratio for now would be 30:70.
This system will help poor and at same time promote economic growth, employment etc.

As far as your opinion for agriculture having too much of surplus manpower, we are in agreement.
I also mentioned in my earlier posts that we also need Industries, but service and agricultural sectors cannot and shouldnt be ignored.

And for the Haryana-Punjab one, I was referring to you calling entire agricultural sector as backward.
These states , especially Haryana have understood the manpower surplus problem and has invested a lot in both Industries , Service sector and at the same time, didnt ignore Agriculture.
Thus they are prosperous .

In a nutshell, I mean to say that equal importance should be given to all the sectors, not just industries.