Indian Economy: News and Discussion

karn

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Rex72920

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Like we do apple iphone in TN?

All the important shit comes from China.

Chinese people per capita, wages grown quiet alot in last decade.

Big Foreign & indian companies should publish indigenous content percentage before using make in india.

Sickel & Screwdriver.
We need to begin somewhere.

And it is perfectly normal for companies to import components to keep the production cost low, initially. Till there is increase in demand in EV sector & vertical integration provides better returns.

The recent rise in imports from China can be attributed to PLI. It is a short term effect attributed to lack of a local supply chain.

For PLI Electronics to succeed we need the Semiconductor Mission to successfully setup foundries & display fab units & PLI Chemicals in setting up Li battery units. Only then backward integration is possible.

All these PLI schemes are at various levels of implementation with most only active for last 1 year. It will take atleast 3-4 years for all these new facilities to integrate themselves into the Indian supply chain.

And only then import substitution can happen.
 
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dfcool

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We need to begin somewhere.

And it is perfectly normal for companies to import components to keep the production cost low, initially. Till there is increase in demand in EV sector & vertical integration provides better returns.

The recent rise in imports from China can be attributed to PLI. It is a short term effect attributed to lack of a local supply chain.

For PLI Electronics to succeed we need the Semiconductor Mission to successfully setup foundries & display fab units & PLI Chemicals in setting up Li battery units. Only then backward integration is possible.

And all these PLI schemes are at various levels of implementation with most only active for only 1 year. It will take atleast 3-4 years for all these new facilities to integrate themselves into the Indian supply chain.

And only then import substation can happen.
Thats why I mentioned BIG foreign companies.

Have you seen Benz or any other foreign company taking PLI scheme to setup high end component manufacturing.

They do all the high tech stuff there and send them in cute boxes here.

They are using india for manual labour because of rise of wages in china. Manufacturing there, assembly here.

For example Look at our IT industry, bunch of 9-5 coolies with no research or innovation in software. This will be the future of manufacturing sector in india.

People might unhappy here but thats the reality. Govt should talk to companies about this practice directly.
 
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Rex72920

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Thats why I mentioned BIG foreign companies.

Have you seen Benz or any other foreign company taking PLI scheme to setup high end component manufacturing.

They do all the high tech stuff there and send them in cute boxes here.

They are using india for manual labour because of rise of wages in china.

For example Look at our IT industry, bunch of 9-5 coolies with no research or innovation in software.
The foreign companies are in no moral obligation to favour us Indians.

If vertical integration of supply chain in India is more profitable than say in China or Europe. Because of various reasons like subsidies or economy of scale or low wages. It will naturally happen.

The onus is on us to provide them a better deal.
 

GigaChadBharatiya

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Thats why I mentioned BIG foreign companies.

Have you seen Benz or any other foreign company taking PLI scheme to setup high end component manufacturing.

They do all the high tech stuff there and send them in cute boxes here.

They are using india for manual labour because of rise of wages in china. Manufacturing there, assembly here.

For example Look at our IT industry, bunch of 9-5 coolies with no research or innovation in software. This will be the future of manufacturing sector in india.

People might unhappy here but thats the reality. Govt should talk to companies about this practice directly.
If you think indian IT employees are 9-5 coolies, then you could not be more wrong. Or maybe you are talking about 12-13 years back.

Its a wrong notion that companies with original research and products are only "real" work and rest are not. Once smaller tools are available, designing entire frameworks with carefully integrating several small parts is also a skill of its own. Most IT techies in India right now are also well versed in designing architectures with business context in mind. It is not just manual labour 9-5 coolie job. You can see salaries going beyond 20 LPA even for people with 4-5 years experience. You dont get that kind of money for being a coolie.
 

karn

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If you think indian IT employees are 9-5 coolies, then you could not be more wrong. Or maybe you are talking about 12-13 years back.

Its a wrong notion that companies with original research and products are only "real" work and rest are not. Once smaller tools are available, designing entire frameworks with carefully integrating several small parts is also a skill of its own. Most IT techies in India right now are also well versed in designing architectures with business context in mind. It is not just manual labour 9-5 coolie job. You can see salaries going beyond 20 LPA even for people with 4-5 years experience. You dont get that kind of money for being a coolie.
Very true.. I have seen westoids rant about how they will replace Indian techies with AI and automation... But they never check to see who makes the AI the and automation tooling :hehe: . And 20 LPA is too low bro..
 

Anupu

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Thats why I mentioned BIG foreign companies.

Have you seen Benz or any other foreign company taking PLI scheme to setup high end component manufacturing.

They do all the high tech stuff there and send them in cute boxes here.

They are using india for manual labour because of rise of wages in china. Manufacturing there, assembly here.

For example Look at our IT industry, bunch of 9-5 coolies with no research or innovation in software. This will be the future of manufacturing sector in india.

People might unhappy here but thats the reality. Govt should talk to companies about this practice directly.
India is actually known for more high end automation driven manufacturing. Our labor laws are not attractive for mass scale manual manufacturing.
 

Anupu

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Thats why I mentioned BIG foreign companies.

Have you seen Benz or any other foreign company taking PLI scheme to setup high end component manufacturing.

They do all the high tech stuff there and send them in cute boxes here.

They are using india for manual labour because of rise of wages in china. Manufacturing there, assembly here.

For example Look at our IT industry, bunch of 9-5 coolies with no research or innovation in software. This will be the future of manufacturing sector in india.

People might unhappy here but thats the reality. Govt should talk to companies about this practice directly.
Also production linked incentives are as the name suggests connected to scale of production. How much demand of Benz is really there in India?
 

dfcool

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Also production linked incentives are as the name suggests connected to scale of production. How much demand of Benz is really there in India?
as far as i know PLI scheme does not depend on indias demand. You can obtain PLI scheme without selling anything in india.
 

Anupu

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as far as i know PLI scheme does not depend on indias demand. You can obtain PLI scheme without selling anything in india.
You can't subsidize exports, that's dumping.
By its very construct, the PLI scheme does not link the eligibility or quantum of its subsidy to exports and local value addition, thus making it WTO-compliant. Its details (for instance, offering the subsidy to phones with price tags of over ₹15,000) influence companies to commit themselves to exports and local value-addition targets, but indirectly.
The idea is economies of scale. If I make manufacturing goods for Indian customers viable in India, the increased scale will automatically make the companies export from here.
 

Anupu

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You can't subsidize exports, that's dumping.

The idea is economies of scale. If I make manufacturing goods for Indian customers viable in India, the increased scale will automatically make the companies export from here.
That's why PLI works hand in hand with tariffs. You want access to Indian markets manufactured here. And now that you manufacture here, it's now easier for you to just export from here.
 

26/11

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