GoofyBanana

Student

Why is Indian manufacturing so behind compared to China ?

I geniually want to understand why we are behind in manufacturing ? Although I'm from commerce background but I would love to know how does one start manufacturing business in India ?

What type of engineers you need ? Honestly I don't have any clue but if any has some information pls discuss here.

10mo ago

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ZestyPretzel

Swiggy10mo

Autocracy vs democracy. China got to manipulate its currency for two decades at a stretch - got it pegged at 6 remnibi to usd keeping exports cheap, influenced/lobbies/spied at the highest levels in the US government for decades (look up Larry Wu Tai). This meant unbelievably high USD inflow into China for decades. Chinese nationals who emigrate to US are loyal to China, steal IPs, some are even PLA trained - look up PLA members posing as students in ivy leagues. China pays up American profs to work for them (look up collaborations of Wuhan institute of virology). Their communist background helped since most American institutions are infiltrated by communists thanks to Russia paving the way - so much that they got US to dethrone ROC (Taiwan) from UNSC. Till today, US does not recognise Taiwan as an independent nation despite the grandstanding. Not saying this is all wrong, but they played geopolitics very well over decades and got loyal, nationalistic citizens.

ZestyPretzel

Swiggy10mo

If they have to build an eight lane road they wouldn't have to worry about farmer protests. Implementing farm laws do not require handling protests. Just stating difference between autocracy vs democracy

GoofyBanana

Student10mo

Can't india gov play same book ?

ZoomyMuffin

Stealth10mo

Manufacturing needs better connectivity infra, very reliable electricity and water supply, less bureaucracy, easy tax rules and cheap but skilled Labour.

Let me take China: the cost to transport something from the deepest inland factory in China to a port in US is cheaper than to transport the same between two states in India. Chinese goods are cheaper in US then even from Mexico due to the most smooth roads, rail and shipping ports. India's roads are not as super, we even had customs intra state before GST.

Until this is solved, all other factors are moot, so let's not even get to them.

GoofyBanana

Student10mo

Damn.

DerpyBanana

Stealth10mo

You haven't addressed how China got there. They didn't have the logistical setup to be the manufacturing hub. That came later.

Question is how did they get there, and why can't we.

SqueakyPickle

Google10mo

China had Deng Zioping, the visionary leader...

India had Indira Gandhi in whose regime, taxation rate was 97.5% for rich ... Our "socialist"politicians like Lalu and Nitish still don't want to be photographed with any industrialist because it will harm their "Socialist" image ... Bihar be damned

JumpyHamster

Stealth10mo

Lazy workforce and half knowledge talent who always look at jugaad attitude.

Just see businesses , I was talking to SMB cusotmer I will employee a guy for 10k with excel knowledge. I don't need software.

GoofyBanana

Student10mo

I think half knowledge is main culprit.

CosmicLlama

Stealth10mo

I disagree. Not lazy workforce, but educated workforce/ecosystem. You cannot run sweatshops like china in big scale. We do have sweatshops but they are small in size. Small size doesn't have economies of scale.. Jugaad attitude is because people who invest money want immediate profit. No one wants to do things long term. And not to mention almost zero R&D. Our companies have a R&D decision only for tax purposes.
This is why even in IT, we prefer trading and copy ideas of the west. 25+ years and still we do not have a decent globally accepted software. Politically inclined deals is what's runs out factories.
Lastly bureaucracy, our laws are meant only for harassment. So when the promoter knows he has to grease palms at any moment, he isn't inclined to think long term

MagicalRaccoon

Pine Labs10mo

Because, if we open manufacturing say for eg. In Karnataka, the state govt will demand that 80% of all those jobs goto Kannadigas, then the local kannadiga population will threaten, bully, beat outsiders for coming to their "beautiful" cities. Then the factory owner will have to employ these same illiterate useless kannadigas.

But the kannadigas know they didn't deserve it and were able to bully, best threaten their way into their jobs, so they have no need or desire to work hard or maintain standards. Result? Inferior products being created

Replace this with any state, we are all protectionist, countries within a country, feudal medeival minded subservient people. Not just to foreigners, but rather any godman/fancy dress champion and we will continue on this path forever.

SwirlyTaco

PayTM10mo

You forgot about the cut to be given to babus at each step of legal procedure

GoofyBanana

Student10mo

Wtf, I didn't knew such problems exist in terms of laws. We so backward man. Thanks for info

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Investors should get some blame as well

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