Not possible. For capital equipment = clear policy, no CKD / SKD. Everything has to be manufactured except for which it can be proven that it cannot be made in India due to political restriction of the home government / TOT restriction.
Also it is not so cheap to make in India compared to China. Why? Labour wages in China are 40% more than that in India in absolute terms.
So if India = 10 USD (example only), then China = 14 USD (40% more). But the trick is the PPP (Purchasing power parity to identify real wages). So the USD PPP for China in 2010 is 3.72 while for India is 2.9. So what does this mean?
Per PPP labout wages in China = USD 14 / 3.72 = 3.76
Per PPP labour wages in India = USD 10 / 2.9 = 3.44
So how much more the labou in China from India? = 8.1 %.
So it is not too much the difference in the factor cost of labour or capital. The major difference comes in due to the currency manipulation by China. That is why the end product is cheaper than India.
But if Huawei makes the equipment in India, they can go around the non-tariff barriers + also the tariffs = about 38% including SD & CVD. That should by the end make them more competitive when they make in India rather than import from China.
But the point is: They have to invest in India to do that.
^^ you know
NOTHING on economics and international finance, because you are repeatedly making blunders even in Economics 101.
I have no time to correct you sentence by sentence, but to point out the main areas where you are BSing:
Directly comparing China and India in PPP terms as you do, hence to derive your wage differtial "conclusion" is patently misleading and grossly violating the very spirit of PPP which is solely based on Law of Universal One Price due to efficient arbitrage.
In layman's term, comparing China and India in PPP term is implicitly assuming that China and India have
the SAME trade tarrifs/restrictions and
the SAME internal transpotation cost, alongwith other 3 or 4 BIG catagories of similar dumb assumptions.
As any idiot will tell you that the differences on
infrastructure (directly correlated with tranportation cost) and
trade restrictions (import/export tarriffs, labour unions, govt politics, local practics, etc.) between China and India are MASSIVE, which should massively over-states India's GDP in PPP term compared to China, other factors being equal (PPP is misleading concept when directly applying to country-to-country comparison, being laughed at by any serious economist; but it couls be a useful machanism mainly hlepful when applied to very homogenious regions), hence the wage differential based on your fanboy PPP-based GDP assumption is far from reality.
In case of China and India, I would more incline to trust exchange rate-based numbers, adjusted by the market-consensus degree of appreciation of Chinese RMB in relation to Rupee, which could in theory result as large as 4 times wage difference between China and India. One of my mates did a field project years ago containing monthly manufacturing labour costs between China and India, his similar conclusion of about 4X (China about 300 and India about 60-80) confirms the theory to a certain extent.
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