- Mar 11, 2021
Exports are commodity based goods….all it means is the cheap scale manufacturing is still there. It is like we do the high value added activities like chip design while China does the volume based low value added manufacturin. A chip designer in India in Bangalore gets paid close to $150-200,000 dollars a year whereas a manufacturing wumao in guarding gets paid $6000 a year. Look at the number of chip design centers in Bangalore - all big companies and new pathbreaking startups like Ampere have their R&D centers in Bangalore. Some are in Shanghai too but they pale in comparison to the number of R&D centers in Bangalore. let’s say that’s 5000 R&D & hardware design engineers - each of them getting paid north of $150,000 per month in Bangalore. That’s phenomenal knowledge add to India and local economy. Plus about $1 billion per year circulation in local economy. You can never ever compete with a knowledge economy through low value manufacturing and exports. Even high value manufacturing exports cannot compete with a high value knowledge economy. India is able to have a high value knowledge economy which the wumaos will never ever have. With the new Edu startups like multi-billion dollar valued Byju’s and others, this knowledge economy will reach every Indian’s doors. Meanwhile all the peasants in China will be manufacturing devices that Americans and Indians will use to get wealthier. This is why china’s high volume manufacturing exports can NEVER make the serfs wealthier. Think about for every manufacturing good China exports, the profit margin is less than 5%. For every information good India exports the profit margin is 30%. Who will ultimate lead a wealthier, fulfilling life? It is the Indians as the education economy scales through these trailblazing startups, a massive number of Indians will be in the knowledge economy. Just go to any major US company and see where they are hiring engineers. It is mostly in India. Take NVIDIA for example, 80% of their artificial intelligence job postings are for locations in India - Bangalore, Hyderabad etc. what does that tell you? The CCP and wumaos like you are toast. You are history and none of you will be remembered but most of you will be hated and despised for unleashing the Wuhan virus. The heaven’s mandate has been withdrawn from emperor Xi and his criminal party goons. The CCP story is over. Bye bye.
Interesting Geography: 70% of India's agricultural population, but the proportion of tertiary industries is nearly 60%?
The 2020-05-01 06:16
From global to regional, we have done too many issues of industrial restructuring or upgrading. But it is too difficult for India to reform its industrial structure! Look at this figure -- agriculture accounts for about 70% of the population in India, but tertiary industry accounts for nearly 60%. What's going on here?
What kind of country is India?
India, located in South Asia, is the largest country in the subcontinent. It borders Bangladesh, Nepal, Bhutan and China to the northeast, myanmar to the east, Sri Lanka to the southeast across the sea, and Pakistan to the northwest. Bangladesh in the east, the Arabian Sea in the west, the coastline is 5,560 kilometers long.
Countries and transportation in South Asia
The population of India is 1.326 billion (2016), the second most populous country in the world after China. It is composed of more than 100 ethnic groups, the majority of which is Hindustani, accounting for 46.3% of the total population of The country.
Why is there so much agricultural population in India?
Some developing countries, such as India, Bangladesh and Indonesia in Asia, have lagged behind their corresponding level of economic development and industrialization. India, the largest country in South Asia, was 17 percent urbanized in 1950, compared with 13 percent in China. However, with the development of China's reform and opening up, the urbanization process has accelerated. In 2017, China's urbanization level has reached 58.52%.
But India's urbanization level was only 32.8 percent in 2017, nearly 26 percentage points behind China and below the average of developing countries.
Reasons for the low level of urbanization in India is mainly due to the foundation of social construction, because India has not establish a unified national market, so the government is hard to get tax from the states, thus it is difficult to large-scale infrastructure construction, we from India train speed can see India's infrastructure is very poor. The lack of transportation, urban amenities, urban services and other functions has seriously hindered India's urbanization process, which is expected to reach 38% by 2025.
Third, why does India have such a high proportion of tertiary industries?
As can be seen from the chart, since 1996, the tertiary industry in India has been much higher than the primary and secondary industries.
Changes in the share of India's three industries
In the agricultural structure of primary industry, India is mainly planted, and mainly rice, wheat and other food crops. Due to the strong influence of the southwest monsoon, the temporal and spatial distribution of precipitation is unbalanced, with frequent floods and droughts, so the food production is very unstable. Now, it is basically "dependent on the weather", coupled with the large population, resulting in nearly 1/4 of the population is still difficult to meet food and clothing.
△ Agriculture and industry in India
In the industrial structure of the secondary industry, the slogan of "high quality and low price" is an effective way of sales. However, The pharmaceutical industry with advantages in India lacks independent products and technologies, that is to say, it does not have its own brand, and it is difficult to have formal sales channels in the international market. In addition to the label of developing countries, are often into the "shanzhai" industry. Moreover, as the largest manufacturing industry in India, more than 90% of cars are OEM factories in developed countries, and there are only a few products and technologies truly belonging to India. Because of its weak infrastructure, India is doing well in sectors with low supply chain requirements such as pharmaceuticals, software and outsourcing services.
In the tertiary industry service industry, India's I T industry can be said to be their pride, India's booming software services development rapidly, has made an important contribution to economic growth. But in this industry, it's all outsourcing, outsourcing, outsourcing, and there are hardly any Indian brands. In addition, the software industry plays a weak role in driving employment in India. First, these high-tech industries have high requirements on the quality of labor force, while the literacy rate of adults aged 15 and above in India is only about 72% (2015), so the industrial demand does not match the quality of labor force, which naturally leads to few employment opportunities. Second, the employment cooperation between industries is weak. For example, the tertiary industry, which mainly focuses on financial service information, is knowledge-intensive and requires high input of human capital. It has little driving force for traditional domestic manufacturing and infrastructure, and lacks sufficient driving force and lasting power for economic development. Third, the brain drain is too large. With the advanced development of Indian software, Indian education almost cultivates the elite class, but the talents cultivated are subject to the difference in salary and treatment at home and abroad, resulting in serious brain drain, which aggravates the gap in economic development at home and abroad and forms a vicious circle.
In this unique social structure -- the coexistence of "elite class" and "backward class", the basic industry has not developed, the secondary industry is unreliable, and the tertiary industry has developed beyond normal, which will naturally affect India's domestic economic development and become its bottleneck.