Indian Economy: News and Discussion

[doreamon]

There are two sides to every story...

This is the same region where POSCO wanted to open up their steel plant.So naturally you would expect heavy protest from locals.

People in Odisha are not very keen on new steel plants coming up because they happen to be the last beneficiary of their own resources. Majority of the beneficiary happen to outsiders.So why should people sacrifice their prime land to benefit others ?

And despite having so many industries there is virtually no job opportunities in the state forcing millions to migrate to other states.Odisha's massive industrialization has not helped in either alleviating poverty or job creation.

I dnt think there is massive industrialization in Odisha . Its a mere 75 billion economy . And i dnt think people suddenly rise to protest because of some rights or something . There are instigators . And at ground level money is distributed . There is a whole ecosystem behind such protests . People associated with such protests used to be glorified before internet era . I remember i knew few of those names in school times because they used to ask in queez competition .

 

[Concard]

That was simply a plan with considering any reality:
1. Chinese salaries only started to boost after 2010, before that, there was no big gap between the 2 countries.
2. The anti-Chinese sentiment wasn't popular until 2012-2013. There was no political will to force the manufacturing re-location before 2010.
3. Even these factories were leaving China, the next destination for most of them would be South East Asia, not India, just like what is happening today.

We are talking about 2004. Like as you said China was taking off in manufacturing. The Indian government at that time NDA wanted to focus on manufacturing if they happen to win in 2004 elections which unfortunately they lost. Until now the period between 1999-2004 remains the best any Indian government has gotten in terms of economic reforms and job creation. That 6 year period created 65 million jobs, that's 10 million each year. They undertook massive highway construction. They opened up the economy for more foreign investment. They made many public sector units profitable and even sold off some to private players.

According to a report if they would have won in 2004, they would have diverted some manufacturing which would have gone to China to India instead. Back then there wasn't much difference between India and China in economic terms. So it was highly feasible it would have happened.

 

[asaffronladoftherisingsun]

Excellent patrol of coomeress.

 

[angryIndian]

I dnt think there is massive industrialization in Odisha . Its a mere 75 billion economy . And i dnt think people suddenly rise to protest because of some rights or something . There are instigators . And at ground level money is distributed . There is a whole ecosystem behind such protests . People associated with such protests used to be glorified before internet era . I remember i knew few of those names in school times because they used to ask in queez competition .

Odisha's industrial sector is dominated by heavy engineering industries.The Net income of such industries thereby the net contribution to the economy is much lower than service/tertiary sector companies which are predominant in South India,Maharastra and Delhi-gurgaon-Noida.

Further these industries have very low socio economic impact as there are few hirings,mostly contractual 3rd party jobs with no economic security and above all they have a huge damaging impact on the local environment which destroys the livelihood of people in neighbourhood. This is why people are very apprehensive about any new industrial projects.

 

[angryIndian]

According to a report if they would have won in 2004, they would have diverted some manufacturing which would have gone to China to India instead. Back then there wasn't much difference between India and China in economic terms. So it was highly feasible it would have happened

Oh please ,Unlike India,China had everything set up for rapid industrialization.Therefore even if Vajpayee had won in 2004,it's highly unlikely that India would have snatched even a fraction of manufacturing from China.

Unlike India ,China always invested in healthcare,education and upskilling it's people so by the time they opened up their economy they already had a population that was ready for mass industrialization.

Sadly this is not the case with India even today.Average productivity of an Indian employee is very low.
Any advantage that comes from low cost of employes is negated by a low productive workforce that the companies have to spend a premium on skilling and training.Not just that they have to content with an infrastructure that is still not upto the mark.Even today major companies do not depend on government grid supply because of it's unreliability,forcing them to install the costly captive plants.So their profits they earn are eaten away by the high cost of operations.

 

[indiatester]

That's why I said, "usually". Politicians don't talk all the right stuff because of two reasons-1) lack of competence on the issue, 2) lack of returns in their polity. South has been lucky on (2) part, the people there voted for development but other than that it's only a matter of luck that we get a competent minister in a suitable portfolio (what had Tai got to do with Economics/Finance, or Ninda Turtle to do with Defence earlier he was in Home)

KTR actually studied and worked in US for a few years before returning back to work for his father.

 

[doreamon]

Odisha's industrial sector is dominated by heavy engineering industries.The Net income of such industries thereby the net contribution to the economy is much lower than service/tertiary sector companies which are predominant in South India,Maharastra and Delhi-gurgaon-Noida.

Further these industries have very low socio economic impact as there are few hirings,mostly contractual 3rd party jobs with no economic security and above all they have a huge damaging impact on the local environment which destroys the livelihood of people in neighbourhood. This is why people are very apprehensive about any new industrial projects.

U can say as a percentage of GDP industry contribute more . In absolute value it is very less . Thats nt massive industrialization . Massive industrialization is in Guj and TN . The reason why u see less unemployment there .
I dnt agree locals dnt get benifited by industries . Besides direct employment there is employment in backward forward linkage . Even small service sectors around industrial zones gets beinifited . Not just that .. the value of your land holding around such industrial zones , ports rise by multiple fold .

But there is no lack of people who ll spread anti industry sentiments . I knw one incident when Hirakud dam was being constructed some elements spreaded the rumor that making electricity out of water ll take away its potential to grow food crop there was a big protest due to this .

 

[Shuturmurg]

Oh please ,Unlike India,China had everything set up for rapid industrialization.Therefore even if Vajpayee had won in 2004,it's highly unlikely that India would have snatched even a fraction of manufacturing from China.

Unlike India ,China always invested in healthcare,education and upskilling it's people so by the time they opened up their economy they already had a population that was ready for mass industrialization.

Sadly this is not the case with India even today.Average productivity of an Indian employee is very low.
Any advantage that comes from low cost of employes is negated by a low productive workforce that the companies have to spend a premium on skilling and training.Not just that they have to content with an infrastructure that is still not upto the mark.Even today major companies do not depend on government grid supply because of it's unreliability,forcing them to install the costly captive plants.So their profits they earn are eaten away by the high cost of operations.

That is true, China's literacy rate in 1991 was around 78% , India around 48%. India's literacy rate is still lower than their 1991 level. Even their life expectancy was around 70 years in 1991. Plus quality of education is better in china . God knows what we did till 1991, didn't build infra, didn't spend on human resources (a hallmark of socialist govenments like cuba, etc), didn't have free market, didn't industrialize.

 

[Covfefe]

KTR actually studied and worked in US for a few years before returning back to work for his father.

Akhilesh did engineering from NIE mysuru( pretty good and old institution) and MBA from Australia.

 

[Physx32]

Asking about pollution in Chinese cities. He said pollution is bad but it is a necessary evil to transition towards a better economy. He saw this as a sacrifice for future generations.

The average Chinese citizen also sees CCP as a necessary evil. They believe that only a dictatorship can alleviate poverty (which is probably true).

 

[Physx32]

Ya'll Nibbiars without Gadkari even this Infrastructure push would had failed. We need more competent minister like gadkari and not like Tai and Kaddi Ninda.

But this ministry is running low in talents like them.

Gadkari ji is the only minister who's actually delivering. Just see the railways which is still stuck in colonial era.

 

[sauntheninja]

Oh please ,Unlike India,China had everything set up for rapid industrialization.Therefore even if Vajpayee had won in 2004,it's highly unlikely that India would have snatched even a fraction of manufacturing from China.

Unlike India ,China always invested in healthcare,education and upskilling it's people so by the time they opened up their economy they already had a population that was ready for mass industrialization.

Sadly this is not the case with India even today.Average productivity of an Indian employee is very low.
Any advantage that comes from low cost of employes is negated by a low productive workforce that the companies have to spend a premium on skilling and training.Not just that they have to content with an infrastructure that is still not upto the mark.Even today major companies do not depend on government grid supply because of it's unreliability,forcing them to install the costly captive plants.So their profits they earn are eaten away by the high cost of operations.

Would love if somebody did a comparison between a typical stem syllabus between China and India here after placements students have to be put to training for months before they can start becoming productive and all the startups coming from India are from the top universities like IIT so there is a very clear divide between the top and the rest

 

[Haldilal]

Gadkari ji is the only minister who's actually delivering. Just see the railways which is still stuck in colonial era.

Ya'll Nibbiars we need more Technocarts ministers like gadkari.

 

[Haldilal]

Ya'll Nibbiars losing three technocrats ministers was the biggest step back for the current government. Sushma swaraj was probably was one of the greatest foreign ministers, Arun Jaitley and leads but not the greatest of the one Parrikar. This losses would not be covered easily.

 

[Physx32]

Would love if somebody did a comparison between a typical stem syllabus between China and India here after placements students have to be put to training for months before they can start becoming productive and all the startups coming from India are from the top universities like IIT so there is a very clear divide between the top and the rest

Top universities in India have up to date curriculum (I can only confirm for engineering). Since students have no industrial experience, training is mandatory (in all countries, not just India). It's the lower skilled labour force which is less productive, not the engineers.

 

[sauntheninja]

Top universities in India have up to date curriculum (I can only confirm for engineering). Since students have no industrial experience, training is mandatory (in all countries, not just India). It's the lower skilled labour force which is less productive, not the engineers.

Factory work is basically monotonous and repetitive and that is what our education system excels in so i dont see why an average indian would be unproductive when given orders and the job is doing the same thing over and over again in a factory

 

[Physx32]

Punjab, Bengal, Telangana, Maharashtra minister try to woo Elon Musk for setting up Tesla plant in state, but their record isn't something to be proud of

In July 2021, OpIndia had reported that Musk was seeking temporary relief in import tariffs. Indian government has been urging to manufacture cars in India and discourage imports by relatively high import duty to encourage the make-in-India initiative. | OpIndia News

www.opindia.com

Why is everyone suddenly asking Elon to open factory here? Tesla would probably sell 1000 cars/year in India, why should he open a factory for that? Just shows how incompetent these people are.

 

[Shuturmurg]

Would love if somebody did a comparison between a typical stem syllabus between China and India here after placements students have to be put to training for months before they can start becoming productive and all the startups coming from India are from the top universities like IIT so there is a very clear divide between the top and the rest

More than at the top, where we are lacking is at bottom and middle. Many of our kids pass from school without even knowing basic maths and reasoning.

60% rural private school students in class 5 cannot solve a simple division problem: Report

About 60 per cent of all private schools do not extend to a board exam grade (class 10) at all, making it particularly hard for parents to judge the quality of these schools. This information gap also means that schools are less likely to invest in learning-focused invisible improvements like...

indianexpress.com

Maths: 56% of Class VIII students can't do basic maths, 27% can't read: Report | - Times of India

News News: The Annual Status of Education Report (ASER) 2018, by NGO Pratham, found there's been little improvement in learning over the past few years. The stor

timesofindia.indiatimes.com

How do you expect them to grow up and be productive member of an industrialized society. We need to fix issue of stunting of our kids (stunting impacts brain development), and make sure they are learning stuff in school.

China scores near top ranks in PISA rankings, India on other hand pulled out of PISA testing because we scored so badly.

Why Does India Refuse to Participate in Global Education Rankings?

India’s troubling record on education won’t go away by boycotting PISA.

thediplomat.com

 

[angryIndian]

Would love if somebody did a comparison between a typical stem syllabus between China and India here after placements students have to be put to training for months before they can start becoming productive and all the startups coming from India are from the top universities like IIT so there is a very clear divide between the top and the rest

I cant say for graduate engineers but since i have interacted with a lot of American,Canadian and Chinese technicians i can say they are exponential times more skilled than an average Indian technician.

Their knowledge level despite being passouts from their local community colleges is at par with an average IIT grad.

Often times the only thing an average Indian technician knows about nut and bolt is how to fit a nut to bolt.Those western ones are well aware of the strength grade,tensile and ultimate tensile stress and which grade fasteners and which tool to use for which application.To top it all,unlike mostly computer illiterates technicians over here,they are well skilled in CAD/CAE.

 

[Lonewolf]

I cant say for graduate engineers but since i have interacted with a lot of American,Canadian and Chinese technicians i can say they are exponential times more skilled than an average Indian technician.

Their knowledge level despite being passouts from their local community colleges is at par with an average IIT grad.

Often times the only thing an average Indian technician knows about nut and bolt is how to fit a nut to bolt.Those western ones are well aware of the strength grade,tensile and ultimate tensile stress and which grade fasteners and which tool to use for which application.

So u mean IITian are equal to a western technician , don't go to any iit and speak this non sense , you will be thrashed in so technical terms that even Google search for next 40 years won't help you to get what you were said .

Better keep your shit thinking away from iits , those people don't take exfarts so casually