Indian Economy: News and Discussion

ezsasa

Designated Cynic
Mod
Joined
Jul 12, 2014
Messages
24,482
Likes
105,420
Country flag

FalconSlayers

धर्मो रक्षति रक्षितः
Senior Member
Joined
Oct 14, 2020
Messages
18,730
Likes
107,007
Country flag

XR SAM

Regular Member
Joined
May 3, 2020
Messages
217
Likes
1,484
Country flag
Manufacturing goods in India is costly because of high cost and unreliable power, poor roads and unskilled labour. Then how are they doing so many exports if made in India products are not competitive? And Samsung shifted it's display unit here. Are their manufacturing cost same here as in China? If the answer is yes then why can't we make cheaper goods in other sectors, why Chinese goods are always cheaper?
 

FalconSlayers

धर्मो रक्षति रक्षितः
Senior Member
Joined
Oct 14, 2020
Messages
18,730
Likes
107,007
Country flag
Manufacturing goods in India is costly because of high cost and unreliable power, poor roads and unskilled labour. Then how are they doing so many exports if made in India products are not competitive? And Samsung shifted it's display unit here. Are their manufacturing cost same here as in China? If the answer is yes then why can't we make cheaper goods in other sectors, why Chinese goods are always cheaper?
Too much YouTube education makes people write up this :lol:.
 

afako

Hindufying India
Senior Member
Joined
Aug 18, 2010
Messages
3,073
Likes
15,142
Country flag
Manufacturing goods in India is costly because of high cost and unreliable power, poor roads and unskilled labour. Then how are they doing so many exports if made in India products are not competitive? And Samsung shifted it's display unit here. Are their manufacturing cost same here as in China? If the answer is yes then why can't we make cheaper goods in other sectors, why Chinese goods are always cheaper?
If you understand PLI scheme rationale, the Govt sat with manufacturers across the table and said leave all these cost comparison with other countries, tell me one figure how much India is costly compared to other country, the Govt said we will directly pay you that cost which is % of value. Manufacturers were happy but Govt said what's my benefit? You export as per my wishlist and get forex for and take this money.

Remember in manufacturing profit margin is in single digits. Every 1% of cost reduction counts significantly towards profit. First the Govt reduced corporate tax to 15% for new manufacturing firms (compared to 25% in competitor country) and now paying 4% to 6% as direct cash, so the manufacturer is making more profit compared to other countries.
 

thebakofbakchod

Regular Member
Joined
Jun 16, 2020
Messages
436
Likes
2,491
Manufacturing goods in India is costly because of high cost and unreliable power, poor roads and unskilled labour. Then how are they doing so many exports if made in India products are not competitive? And Samsung shifted it's display unit here. Are their manufacturing cost same here as in China? If the answer is yes then why can't we make cheaper goods in other sectors, why Chinese goods are always cheaper?
Wages in China have risen quite significantly in the last decade. Even with our shit infrastructure and logistic network, it will probably be cheaper to build the plant here in coastal states near ports (whose infra is on par/better than so-called tigers like Vietnam anyway). The median salary in China is now >$1000. For manufacturing sector, it is ~85000 yuan / year aka 10 lakh INR per year. Even majority of our tech workers dont earn so much.

.
 

Concard

Regular Member
Joined
Jun 18, 2020
Messages
356
Likes
2,224
Country flag
Manufacturing goods in India is costly because of high cost and unreliable power, poor roads and unskilled labour. Then how are they doing so many exports if made in India products are not competitive? And Samsung shifted it's display unit here. Are their manufacturing cost same here as in China? If the answer is yes then why can't we make cheaper goods in other sectors, why Chinese goods are always cheaper?
Have you heard of integrated supply chain? Chinese workers have to be paid 7,000 RMB per month which is $1,000. Here that is the salary you pay to a 4 years experienced software Engineer not for a person who works on the factory floor. So why does manufacturing in China is cheaper? Well as I said "Integrated supply chain".

If you take an iphone, right from Printed circuit boards, passive components such as resistors and capacitors, speakers, wires, plastic/metal casing, battery, display everything is manufactured in more or less one place. Even the raw materials are made available near or in one place to churn out goods faster. On the other hand we have to import certain components which is going to cost us time and time is money, and again we don't manufacture everything here so we assemble something here and put together everything in another place, in the end the costs are going to add up.
 

thebakofbakchod

Regular Member
Joined
Jun 16, 2020
Messages
436
Likes
2,491
Have you heard of integrated supply chain? Chinese workers have to be paid 7,000 RMB per month which is $1,000. Here that is the salary you pay to a 4 years experienced software Engineer not for a person who works on the factory floor. So why does manufacturing in China is cheaper? Well as I said "Integrated supply chain".

If you take an iphone, right from Printed circuit boards, passive components such as resistors and capacitors, speakers, wires, plastic/metal casing, battery, display everything is manufactured in more or less one place. Even the raw materials are made available near or in one place to churn out goods faster. On the other hand we have to import certain components which is going to cost us time and time is money, and again we don't manufacture everything here so we assemble something here and put together everything in another place, in the end the costs are going to add up.
I once had to fabricate a plastic mold with a custom design and sourced for local industries to do it. None of the jokers had the ability to make what i want. Their cost and proposed timeline was tragic. In the end I got a chong factory to do it. It was literally cheaper and faster to get it imported from there then rely on the local factory. Sad state of affairs. This was 4 years back so things are likely still the same but this is one of the main reasons why our manufacturing sector remains primitive. Our companies dont have the capability or flexibility to cater to customer needs. This thing will only happen with government support and strong competition
 

Physx32

Regular Member
Joined
Feb 28, 2019
Messages
715
Likes
4,951
Country flag
Have you heard of integrated supply chain? Chinese workers have to be paid 7,000 RMB per month which is $1,000. Here that is the salary you pay to a 4 years experienced software Engineer not for a person who works on the factory floor. So why does manufacturing in China is cheaper? Well as I said "Integrated supply chain".

If you take an iphone, right from Printed circuit boards, passive components such as resistors and capacitors, speakers, wires, plastic/metal casing, battery, display everything is manufactured in more or less one place. Even the raw materials are made available near or in one place to churn out goods faster. On the other hand we have to import certain components which is going to cost us time and time is money, and again we don't manufacture everything here so we assemble something here and put together everything in another place, in the end the costs are going to add up.
This is quite similar to CKD car assembly. I had an old laptop (around 2007) which was assembled in China while many of the components (like batteries) were imported from Japan and Singapore. Nowadays, all the components (except the cpu and gpu) are made locally in China. Hopefully, we can build an integrated supply chain soon with TSMC and Intel setting plants in India.
 

sauntheninja

Senior Member
Joined
Dec 16, 2020
Messages
1,364
Likes
3,565
Country flag
This is quite similar to CKD car assembly. I had an old laptop (around 2007) which was assembled in China while many of the components (like batteries) were imported from Japan and Singapore. Nowadays, all the components (except the cpu and gpu) are made locally in China. Hopefully, we can build an integrated supply chain soon with TSMC and Intel setting plants in India.
Having an integrated supply chain means people can experiment with different hardware components to build stuff that's why you see so many copycats coming from china , this builds the experience for college students and helps them in their careers hope India goes through something similar , all the hardware components found in eletronic markets/amazon are from china currently
 

Kumata

Senior Member
Joined
Feb 27, 2019
Messages
5,961
Likes
23,613
Country flag
Any idea if Nirmala Auntie is thinking of giving any tax cuts... BC, inflation is through the roof while baba is busy persuing the global takla man... at this pace, they will alienate the Middle class... all it will take is a promise of tax break from Pappu... Baba is being too ignorant of salaries class plight now ... and asking for stick...

i am just astonished to know that a car,s ex showroom prices have 52% tax component and than another 28% GST Is applied + road tax + All kind of bullshit to get on road Car price.. no doubt , prices are increasing like Rajdhani express... Maruti hiked it,s prices 4 times in last year alone :(
 

ladder

Senior Member
Joined
Mar 28, 2013
Messages
7,181
Likes
11,811
Country flag
Any idea if Nirmala Auntie is thinking of giving any tax cuts... BC, inflation is through the roof while baba is busy persuing the global takla man... at this pace, they will alienate the Middle class... all it will take is a promise of tax break from Pappu... Baba is being too ignorant of salaries class plight now ... and asking for stick...

i am just astonished to know that a car,s ex showroom prices have 52% tax component and than another 28% GST Is applied + road tax + All kind of bullshit to get on road Car price.. no doubt , prices are increasing like Rajdhani express... Maruti hiked it,s prices 4 times in last year alone :(
Prices of cars will further increase with 6 airbags mandate.
 

afako

Hindufying India
Senior Member
Joined
Aug 18, 2010
Messages
3,073
Likes
15,142
Country flag
Any idea if Nirmala Auntie is thinking of giving any tax cuts... BC, inflation is through the roof while baba is busy persuing the global takla man... at this pace, they will alienate the Middle class... all it will take is a promise of tax break from Pappu... Baba is being too ignorant of salaries class plight now ... and asking for stick...

i am just astonished to know that a car,s ex showroom prices have 52% tax component and than another 28% GST Is applied + road tax + All kind of bullshit to get on road Car price.. no doubt , prices are increasing like Rajdhani express... Maruti hiked it,s prices 4 times in last year alone :(
Your vote to Modi does not make any difference to him. He has enough ideological followers and JAN DHAN Yojana beneficiaries to bring him to power next time.
 

Haldilal

लड़ते लड़ते जीना है, लड़ते लड़ते मरना है
Senior Member
Joined
Aug 10, 2020
Messages
21,876
Likes
75,289
Country flag
Any idea if Nirmala Auntie is thinking of giving any tax cuts... BC, inflation is through the roof while baba is busy persuing the global takla man... at this pace, they will alienate the Middle class... all it will take is a promise of tax break from Pappu... Baba is being too ignorant of salaries class plight now ... and asking for stick...

i am just astonished to know that a car,s ex showroom prices have 52% tax component and than another 28% GST Is applied + road tax + All kind of bullshit to get on road Car price.. no doubt , prices are increasing like Rajdhani express... Maruti hiked it,s prices 4 times in last year alone :(
Ya'll Nibbiars Modi dosent need your 5 star taxes or Tai with your IT filing you can shif to Canada. India dosen't need you.
 
Last edited:

Kumata

Senior Member
Joined
Feb 27, 2019
Messages
5,961
Likes
23,613
Country flag
Prices of cars will further increase with 6 airbags mandate.
Prices of cars will further increase with 6 airbags mandate.
Agree...slowly india will go back to gadha gaadi .. Baba wants to meet paris climate target also..... . bicycles too are retailing in 5 digits ... perhaps, we should make a trade deal with porkland to import their high quality donkeys..

Modi master stroke!!!!!!!!!!!!!!
 
Last edited:

Latest Replies

Articles

Top