India Is Trusted And Stable But ‘More Expensive’ Than China, Vietnam For Businesses: US Trade Body

[beijingwalker]

India Is Trusted And Stable But ‘More Expensive’ Than China, Vietnam For Businesses: US Trade Body​

In an interview to ABP Live, Atul Keshap, president of the US-India Business Council says American firms expect greater ‘transparency, predictability’ in policies in the upcoming Union Budget 2023.​

By: Nayanima Basu | Updated at : 24 Jan 2023 09:35 AM (IST)

Atul Keshap, president of the US-India Business Council says American firms expect greater ‘transparency, predictability’ in policies in the upcoming Union Budget 2023.


New Delhi: India continues to be ‘more expensive’ compared to China, Mexico or Vietnam for American businesses even as they expect greater “transparency and predictability” in the upcoming finance budget, according to Atul Keshap, President, US-India Business Council (USIBC) at the US Chamber of Commerce.

In an exclusive interview to ABP Live, Keshap said while American firms operating in India are doing robust business in the country, easing of regulations and more predictability in policies will bring in more investments from the US to India and that remains one of the main demands from the upcoming finance budget.

“Any investor is going to look for ease of doing business, very transparent regulatory practices, predictability in regulation, level-playing field and speedy resolution of disputes. This is not rocket science. This is how the Singaporeans developed their economy into a titan. They studied regulatory practices in the world, they figured out which ones are the best, then cobbled out something even better and they built it and people flock in. There are more American companies invested in Singapore than in the entire rest of ASEAN,” Keshap told ABP Live.

“There have been some successes (in India). There are absolutely happy companies that are enjoying it really well. But India is still more expensive than China. Logistics costs are very much more than China ... This is India’s golden moment. It is a trusted, stable, massive, multi-layered democracy that is widely admired around the world but compared to Vietnam, Mexico, Ohio or China, India is still a little more expensive and because it’s a democracy a little more complicated… So regulatory coherence is very important,” he added.

India Trusted And Stable But 'More Expensive' Than China, Vietnam For Businesses: US Trade Body

In an interview to ABP Live, Atul Keshap, president of the US-India Business Council says American firms expect greater ‘transparency, predictability’ in policies in the upcoming Union Budget 2023.

news.abplive.com

 

[Beast]

Its not a little, its a lot more expensive. Poor road, poor port, slow speed of handling cargo and clearance. Even Indian labourer wages are 5 times cheaper than Chinese, its not gonna win any business.

 

[beijingwalker]

Infrastructures enabling cheap, smooth logistics take decades to build and many idiots believe that cost of a product only depends on labor cost.

 

[retaxis]

Its not a little, its a lot more expensive. Poor road, poor port, slow speed of handling cargo and clearance. Even Indian labourer wages are 5 times cheaper than Chinese, its not gonna win any business.

labor is a small consideration compared to the amount of corruption, red tape and delays of the indian system. infrastructure heavily lacking, poor roads not only delay products and supply chain but also damage vehicles/products which require a lot of money to maintain/replace and there are a hundred other reasons why going to India for business is just a bad idea.

 

[datafreak]

China wages are increasing and population is declining so the price differential will go down.

labor is a small consideration compared to the amount of corruption, red tape and delays of the indian system. infrastructure heavily lacking, poor roads not only delay products and supply chain but also damage vehicles/products which require a lot of money to maintain/replace and there are a hundred other reasons why going to India for business is just a bad idea.

You're comparing it to corruption....in....china...one of the most corrupt countries....

 

[retaxis]

China wages are increasing and population is declining so the price differential will go down.



You're comparing it to corruption....in....china...one of the most corrupt countries....

except chinese get sh1t done thru a results based system and corruption pushes it faster thru favors. Indians are very low IQ and very incompetent. Corruption simply slows India down even more lol. China has dozens of world reknown brand and set up factories in 3rd world countries like India. Don't need foreign investment because we have our own brands you don't thats why you are slumistanis

 

[Skull and Bones]

All our socialist mentality and red tapes needs to be removed.

 

[datafreak]

except chinese get sh1t done and corruption pushes it faster thru favors. Indians are very low IQ and very incompetent. Corruption simply slows India down even more lol. China has dozens of world reknown brand and set up factories in 3rd world countries like India. Don't need foreign investment because we have our own brands you don't thats why you are slumistanis

You're saying 'they may be corrupt but remember they can force labor to get whathever they want done'. how is this 'better'?

 

[retaxis]

You're saying 'they may be corrupt but remember they can force labor to get whathever they want done'. how is this 'better'?

because 1.5billion people aren't living in slums with no hot water and electricity instead they have money and options. Its kinda obvious but I always have to do the 'explain it like they are 5' with Indians.

 

[datafreak]

because 1.5billion people aren't living in slums with no hot water and electricity instead they have money and options. Its kinda obvious but I always have to do the 'explain it like they are 5' with Indians.

It must be a very big burden, 'explaining' things to people. Maybe you should try doing a lot less of that.

 

[retaxis]

It must be a very big burden, 'explaining' things to people. Maybe you should try doing a lot less of that.

You asked about corruption and its a very simple issue why India can not compare to China

In China corruption makes things go faster. Vendors are chosen faster thru payments/skills/history, projects can start earlier, corruption money for finishing things on time/earlier/doing a good job etc. Thats how China turned into a modern country in 20yrs.

In India corruption and red tape not only slows down the process but causes great delays and far greater costs. Worst of all, people lost trust and respect for the system and decision makers.

Corruption is simply a tool and useful for those who know how to use it and devastating for those who don't.

 

[beijingwalker]

labor is a small consideration compared to the amount of corruption, red tape and delays of the indian system. infrastructure heavily lacking, poor roads not only delay products and supply chain but also damage vehicles/products which require a lot of money to maintain/replace and there are a hundred other reasons why going to India for business is just a bad idea.

Even for labor force, it'll take at least a decade to train to obtain a large skilled workforce, it costs moe money than infras.

 

[nahtanbob]

Infrastructures enabling cheap, smooth logistics take decades to build and many idiots believe that cost of a product only depends on labor cost.

Years but not decades

 

[beijingwalker]

Years but not decades

A less than 3 kilometers subway in San Franciso took over 10 years to build and just opened this month, this is how fast you build your infras.

 

[nahtanbob]

A less than 3 kilometers subway in San Franciso took over 10 years to build and just opened this month, this is how fast you build your infras.

California does not want development. They shipped all their factories to China. Tell me something new.

What do you need a subway for an iPhone factory or Dell PC factory ?

the things you need for massive port, roads/railroads, telecommunication links and power generation facilities
everything exists in bit and pieces in India and rest of the world not in integrated seamless manner as in China
it is not too hard to make them.