another_armchair
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Not trying to raise a strawman here but what is the role of automation in manufacturing job losses?View attachment 102110
Overall manufacturing percentage of GDP has gone down on national scale.
Gujrat Tamilnadu and Maharashtra seem to be the few bright spots but overall trends are quite worrying.
Automation has definitely led to job losses in the automobile manufacturing sector.
Consumer durables started sourcing from China in the past decade so your Indian mixer grinder, washing machine etc or a good part of its components are sourced from China and assembled here.
All raw material for bags, jackets etc are sourced from China.
VIP Skybags gets most of its bags manufactured in China and partly in Bangladesh.
A good number of Amazon basics backpacks are made in Bangalore through some third party vendor.
Same with large clothing brands including Flying Machine.
Manufacturers say they simply can't match the wages in India and remain profitable.
A pretty large 'plain' t-shirts manufacturer has a couple of factories in Tiruppur. They make about 10% on a finished product that leaves the factory. Focus is on volumes... or they will have to shutter down. T-Shirt prices range from Rs. 90 to Rs. 145 for premium imported Egyptian cotton t shirts that probably retail for over Rs. 700-900.
Another chap has a pretty big embroidery unit here in Bangalore. His t-shirt manufacturing unit is also in Tiruppur. He goes 'agar Bangalore mein factory khola toh kangaal ho jaounga'.
The minimum wages here are almost Rs. 14-16k pm and labor laws are pretty strict unless you are bribing the labor commissioner big time.
Who will manufacture? What will they manufacture? Why will they manufacture? Why take so much headache? Being a trader is less of a headache. Most manufacturer's turn into traders within 2-3 years of opening their units. The brave one's last about 10 years if policy is in their favor. Babu's have repeatedly fucked our economy with no remorse. Strange, the minister signs on that policy document and it becomes the law affecting livelihood of millions year after year, decade after decade.