India benefits as China begins to lose Manufacturing Edge

[karan21]

According to India's latest GDP data... the Indian manufacturing sector is actually shrinking.

Which was a shock, especially considering all those stories we have been hearing for years, about how China's manufacturing was losing competitiveness to India.

And we've been hearing that same story for a very long time.

While India was talking about it, the nations of Southeast Asia were actually doing something about it. Now they are the ones who are gaining.

Indian core manufacturing sectors like steel, power is indeed shrinking. These low level jobs are not enough to make India a manufacturing powerhouse.

Manufacturing in India is only for import subsituition and not for exports. So yes a fan making company shifting base from China to India won't help manufacturing in general.

India was "talking" about how it's manufacturing sector is an under performer for a long time. Maybe you've listened to the media talking s*&t.

Lets hope these freight lines/manufacturing belts like Delhi-Mumbai and Amritsar-Kolkata goes as planned!

First of all, the plan of the government is to help monetize the land in these coridoors by building the trunk infrastructure and basic amenities. There is no other plan. There is a very high chance of these projects failing and falling off like most other Indian plans..

 

[ice bomb]

reducing un necessary commodity import is always a good news to economy.reason..being trade deficit reduces to that extent yes gold reductions is a good sign what ever be the reason for that..even govt interventions.as far as oil is concerned that 10.1% is the import of only january compared to jan 2013.we need not worry about that.the reason being oil is a necessity and govt cant afford to cut it as it wishes.we always maintain reserves,its not that we always import only what is required to us.so apart from demand govt decides what must be this additional stock to be imported depending on the existing stock.things will be in better perspective if you look at april to jan not just jan.the oil imports corresponding to jan to april actually increased by 1.2% so that 10% reduction is made up in the subsequent months.
heres what ministry of commerce says.
'Oil imports during January, 2014 were valued at US $ 13185.9 million which was 10.1
per cent lower than oil imports valued at US $ 14666.2 million in the corresponding period
last year. Oil imports during April-January, 2013-14 were valued at US $ 138144.0 million
which was 1.2 per cent higher than the oil imports of US $ 136498.1 million in the
corresponding period last year. '

further non oil imports account majority of this reduction.which means electronics and other stuff
http://commerce.nic.in/tradestats/filedisplay.aspx?id=1

and with the shale fields exploration being initiated these imports of oil and gas even will fall in near future.new oil fields were being discovered.so just because less oil imports doesnt imply that we're using less oil
Cairn India discovers two oil fields in Barmer | The Indian Express
Cairn India's Rajasthan block has record 7.3 billion-barrel oil reserve - Economic Times
India has huge growth prospects in oil and gas space - GE Step Ahead Initiative - Moneycontrol
ONGC begins shale gas exploration in India - Livemint
Shale gas: A game changer that India should turn to


you are right.electronics is one of our major imports.sufficient base of fab city will not just reduce our imports but also increase our exports.its a double profit game.if only our govt walks in this direction..we'll see fortunes.

a 10 percent drop followed by a mere 1,2 prosent increase is hardly something to cry about.

http://omrpublic.iea.org/currentissues/fullpub.pdf
page 6 about Indian oil consumptions.
Alot slower than previous years.

The rest of your sources hardly adds anything. Most talking about potentials. Not real productions.

 

[phylumchordata]

it is actually good for China , the CCP has already started moving towards an innovation and technology driven economy of white collars from a manufacturing hub od blue collars , this will save China from getting stuck into the mid income trap in which most south american and east european countries are. China is be a developed country soon.

 

[SouthDesi]

it is actually good for China , the CCP has already started moving towards an innovation and technology driven economy of white collars from a manufacturing hub od blue collars , this will save China from getting stuck into the mid income trap in which most south american and east european countries are. China is be a developed country soon.

You should be crazy to say it's good for China. Any developed country has few million people only and they are thrown away their manufacturing section to the countries where they can get cheap labor and they are all moved to innovation and Technology side. China has 1.3 billion people, w/o manufacturing jobs how can they sustain and BTW when entire world is spending their time on Innovations, who cares about Chinese innovation and Technology. Not even one Chinese famous brand is there in automobiles so far. What innovation are you talking about with 1.3 billions?

It's not like build a big building and send all those people inside to make some product.

 

[帅的一匹]

India market is very appreciated by Chinese business men.

India market is very appreciated by Chinese business men.

You should be crazy to say it's good for China. Any developed country has few million people only and they are thrown away their manufacturing section to the countries where they can get cheap labor and they are all moved to innovation and Technology side. China has 1.3 billion people, w/o manufacturing jobs how can they sustain and BTW when entire world is spending their time on Innovations, who cares about Chinese innovation and Technology. Not even one Chinese famous brand is there in automobiles so far. What innovation are you talking about with 1.3 billions?

It's not like build a big building and send all those people inside to make some product.

China is a very difficult case for Indian to understand, we build and consume BMW at the same time. China will be a technology advanced country within 20 years. China has a huge market for developing indegenous brand in the long run.

 

[SouthDesi]

India market is very appreciated by Chinese business men.

India market is very appreciated by Chinese business men.


China is a very difficult case for Indian to understand, we build and consume BMW at the same time. China will be a technology advanced country within 20 years. China has a huge market for developing indegenous brand in the long run.

That is funny. You are saying I will marry in 10 yrs and My son will take care of me in 30 yrs. I know very well of how the economy works. Don't be silly.

 

[Genesis]

only make sense, Chinese per capita is close to 7,000, while India is more or less at 1,500.

With the right kind of staff, incentive and infrastructure, India would become more attractive to low level manufacturing, as cost is everything in this sector.

Though India must invest in education and infrastructure now, or it might not have the right ingredients, when China really starts to lose these low end jobs, maybe an ASEAN or African nation will take it away. Bangladesh is also making a case for moving it there.

Now if India plays her cards right, you can pull quite a few out of poverty.

 

[neehar]

a 10 percent drop followed by a mere 1,2 prosent increase is hardly something to cry about.

http://omrpublic.iea.org/currentissues/fullpub.pdf
page 6 about Indian oil consumptions.
Alot slower than previous years.

The rest of your sources hardly adds anything. Most talking about potentials. Not real productions.

did'nt you read what iprovided??10% drop was only of january.1.2% rise is from april to jan.when u take month on basis you will find such high differences but when you take overall there is growth in imports.that 10% reductions is compensated by more than 10% growth in remaining months.it will increase further up to april.look at page10 of your same report.the decrease in imports is mainly in naptha,kerosene and other such products.lpg,gasolene,diesel shows increase in imports and higher than russia or japan.yes when we have weak secondary sector this is bound to happen.especially manufacturing and mining.but with posco deal being finalized and new permits given to extract shale gas and oil i see this growthrate rising even in this sector.with retail inflation around 9% there wont be any huge increase in domestic demand so i dont think there will be any great increase in manufacturing as of now.but as this article stated we might cash on the overseas demand.electronics account for more imports for us after crude oil and gold.so we can cash on fabcities.if succeeded not just our imports gets reduced but also our exports increase.

only make sense, Chinese per capita is close to 7,000, while India is more or less at 1,500.

With the right kind of staff, incentive and infrastructure, India would become more attractive to low level manufacturing, as cost is everything in this sector.

Though India must invest in education and infrastructure now, or it might not have the right ingredients, when China really starts to lose these low end jobs, maybe an ASEAN or African nation will take it away. Bangladesh is also making a case for moving it there.

Now if India plays her cards right, you can pull quite a few out of poverty.

education and infrastructure growth is good for now.our concern is mainly mining and manufacturing which is eating away our growth rates.and in manufacturing mainly automobiles and electronics.so those must be taken care off.

 

[Manindra]

only make sense, Chinese per capita is close to 7,000, while India is more or less at 1,500.

With the right kind of staff, incentive and infrastructure, India would become more attractive to low level manufacturing, as cost is everything in this sector.

Though India must invest in education and infrastructure now, or it might not have the right ingredients, when China really starts to lose these low end jobs, maybe an ASEAN or African nation will take it away. Bangladesh is also making a case for moving it there.

Now if India plays her cards right, you can pull quite a few out of poverty.

India per capita income in 2012 is $3800

 

[nik22]

India per capita income in 2012 is $3800

1500 figure is correct. There are other links that you can check. 3800 is like 5 years away.
Income in India - Wikipedia, the free encyclopedia

 

[neehar]

only make sense, Chinese per capita is close to 7,000, while India is more or less at 1,500.

With the right kind of staff, incentive and infrastructure, India would become more attractive to low level manufacturing, as cost is everything in this sector.

Though India must invest in education and infrastructure now, or it might not have the right ingredients, when China really starts to lose these low end jobs, maybe an ASEAN or African nation will take it away. Bangladesh is also making a case for moving it there.

Now if India plays her cards right, you can pull quite a few out of poverty.

what is the base year on which chinese percapita calculated?

 

[Manindra]

1500 figure is correct. There are other links that you can check. 3800 is like 5 years away.
Income in India - Wikipedia, the free encyclopedia

The World Factbook

 

[nik22]

The World Factbook

That is again PPP

 

[kbd-raaf]

The World Factbook

PPP GDP per capita =/= Income level

 

[Genesis]

what is the base year on which chinese percapita calculated?

2013