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"Made in India" - Indian Firms in world

Discussion in 'World Economy' started by sunny_10, Jan 10, 2013.

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  1. sunny_10

    sunny_10 BANNED BANNED

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    Perfint Healthcare - Medical Technology Company


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    PERFINT HEALTHCARE
     
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  2. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    System to blame for the lack of innovation

    Dinesh C. Sharma | Mail Today | April 28, 2011 | UPDATED 08:13 IST

    A folding chair that can also double as a small ladder, guitar made out of bamboo, coin separator, hand operated clothes dryer, broom to clean ceiling fans, dish washer for steel utensils and so on. Don't be mistaken.

    This is not a list of projects on display at a high school science fair, but some of the 'high end innovations' that the famed Indian Institute of Technology Delhi (IITD) put up on show to mark its golden jubilee last week. If anything was on display, it was lack of innovation. The projects were banal. There was hardly any innovation either at the level of ideas or functional value or business potential.

    All products - such as a coin separator or waist belt with alarm or mechanical clothes dryer - are commercially available, if not in the market, at least on the internet. IITD students showed no novelty at the idea level by making crude versions of such devices. Yes, there is always room to innovate in terms of added features, utility, design, cost etc.

    Even this level of innovation was not visible. The dish washer looked like an elongated steel charpai and the fan cleaner just a fancy broom.

    The lack of innovation in our formal education system, particularly in the IITs, is a serious issue. Innovation cannot take place in a system solely based on taking in students with top ranks in the entrance examination.

    Innovation is also not natural to students whose only goal in life is to grab a plum job in an MNC. The crop of IITians we are producing lacks a critical link with the society and their own surroundings. Their sociological growth is stunted because in their formative years most of them are cut off from society and its problems.

    The reason: they are preparing for an endless array of entrance examinations from 9th grade onwards. An innovative mind looks for solutions to problems around it.

    When Remya Jose of Mallapuram in Kerala developed the world's first pedal- operated washing machine she was in high school and wanted to save time that she spent on hand washing clothes. It cost her just ` 2000. If she could afford to buy a washing machine, perhaps she would not have thought about developing her own. Incidentally, Delhi Technological University (DTU) students recently made a copycat version of Remya's washing machine and touted it as their own, even winning some awards. Ordinary people in the Northeast have developed several products from bamboo - including a bicycle (a similar one was shown at IITD) - because that is the only material available in abundance there. Prof Anil Gupta of Indian Institute of Management, Ahmedabad has been documenting such innovations of ordinary people for several years now. Many such have been featured in this column earlier.

    Clearly, innovators such as school kids, drop outs, farmers, mechanics and so on are way ahead of those in the formal engineering education system particularly those from top notch centres like IITs and the likes of DTU. It is high time to look inwards and do something about it.

    You can find made in India but you cant find Invented in india.
     
    Last edited: Dec 29, 2013
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  3. sunny_10

    sunny_10 BANNED BANNED

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    Allengers - Medical Technology Company

    Welcome to our world, a world that understands your needs, a world that actually cares ! Established in 1987, Allengers is a leading manufacturer covering a wide spectrum of diagnostic range of medical equipment for the fields of Radiology, Cardiology, Orthopaedics, Gastroenterology, Neurology, Urology. It also expands to software applications like HMS / PACS and recently launched India's first Mobile Digital Radiography system. :tup:


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    Hospital Diagnostic Equipment Manufacturers | Diagnostic Equipment
     
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  4. sunny_10

    sunny_10 BANNED BANNED

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    Forus Healthcare - Medical Technology Company

    Healthcare delivery is one of the most serious problems faced by emerging countries. One critical factor is the very low doctor-to-patient ratio. In India there is only one doctor for every 1720 people. In some African countries it can be as low as 1:50000. The low doctor-to-patient ratio, coupled with illiteracy, lack of rural reach, and scalability can make the problem of healthcare delivery much more complex.

    Technology can be a major part of the solution to this complex and severe problem with far-reaching social and economic effects.

    The Forus name means, “For us” - me and my community. We are an innovation-driven technology enterprise managed by very experienced professionals. We strongly believe that healthcare solutions for emerging countries have to be different both in terms of development as well as deployment. Our innovative products combine with our comprehensive software solutions to enable not only screening at the patient's doorstep but facilitate treatment as well.

    We develop affordable technology solutions that can easily be used by a minimally trained technician, thereby making health service accessible and scalable.

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    Welcome to Forus
     
  5. sunny_10

    sunny_10 BANNED BANNED

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    look systems of a developing country like India can't be compared to that of US or Australia, its still at least 10 to 20 years backward, as per my personal experience too.......

    circumstances of a developing country is quite different to what we have in OECD countries .....
     
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  6. sunny_10

    sunny_10 BANNED BANNED

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    Ampere electric bike company

    AMPERE Vehicles | Electric Bikes | Electric Cycles Manufacturers in India

    Ampere Vehicles Pvt Ltd designs and manufactures a wide range of reliable, cost effective and quality Electric Vehicles (EV) for providing economical, comfortable, stylish and well performing electric mobility solutions for all categories of people and businesses in Asia and beyond.

    Ampere Vehicles Pvt Ltd is a wholly owned subsidiary of Ampere Vehicles Pte Ltd, Singapore. Ampere has its state of the art assembly line in its manufacturing facility at Sulur, Coimbatore, Tamil Nadu, India. Within a short period of time the company has established a wide network of partners and associates all over the state.
    What is in a name?

    AMPERE VEHICLES - is named after the famous scientist André-Marie Ampère whose theory became fundamental for 19th century developments in electricity and magnetism. World over, the term “Amp” or “Ampere” is used to denote the base measuring unit of current, in remembrance of him.
    Our Vision

    Ampere’s vision is to enhance and empower the lives of people through affordable mobility solutions, world-wide.
    Team Ampere

    Ampere’s dynamic and agile team with an enlarged vision and focused mission is all set to be a dominant player of the Electric Vehicles Industry in India and expand its wings into the global markets as well. The Ampere team is a proper mix of committed employees with relevant experience, education and industry specific knowledge.

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    AMPERE Vehicles | Electric Bikes | Electric Cycles Manufacturers in India
     
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  7. sunny_10

    sunny_10 BANNED BANNED

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    STUDDS is arguably the world’s largest manufacturer of helmets.

    A state-of-the-art manufacturing plant churns out over a million helmets every year. The range of helmets and two-wheeler accessories is the largest in the segment, and it keeps evolving with every passing year.

    The driving force behind the DNA of innovation is the urge to constantly upgrade our portfolio, and provide world-class options to our customers.

    At the heart of this Endeavour is our Research & Development Cell that spearheads innovations in both design and technology, and creates a constant stream of ideas, concepts and breakthroughs.

    STUDDS has emerged as India’s leading helmet and bike accessory brand that sets benchmarks in the industry, and leads the way with a network of dealerships across the country. And a global footprint across 35 countries in North and Latin America, Europe, Africa, Middle and the Far East.


    Studds Accessories Ltd.



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  8. sunny_10

    sunny_10 BANNED BANNED

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    Avasarala Technologie

    It was in the year 1985 that we set foot on the engineering arena, predominantly in the field of high technology engineering. A thirst for excellence and an eye for innovation saw us diversify into vastly different areas of Nuclear Power, Factory Automation, Engineering Construction, Space and Healthcare. It was only a matter of time before we consolidated our position across India and overseas. Delivering optimal technological solutions in critical areas with our comprehensive capabilities, our mission is to continue contributing towards engineering excellence... We are Avasarala Technologies.

    Avasarala Technologies Limited


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    Healthcare

    Avasarala provides state of the art medical technologies and services that are shaping a new way to patient care. Our expertise in Critical Care and Operating Theatre segments are helping clinicians to perform efficiently in patient's care.

    Avasaralas’ Healthcare initially started with a joint venture with Ulco Medical of Australia in 2003 to provide world class health care equipment.The Product range currently comprises Anaesthesia Machines, Anaesthesia Ventilators, Emergency/Transport Ventilators, Anaesthesia Vaporizer and Surgical OT Table.

    As a successfull Quality solutions provider, Avasarala has established a lead position in the Healthcare sector for manufacture and distribution of products and services in the Critical Care and Operating Theatre (OT) segments.

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    Avasarala Technologies Limited

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  9. sunny_10

    sunny_10 BANNED BANNED

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    The World of Competitiveness 2012

    IMD, a top-ranked global business school based in Switzerland, today announced the findings of its annual World Competitiveness Yearbook (WCY). The WCY rankings measure how well countries manage their economic and human resources to increase their prosperity.

    The most competitive of the 59 ranked economies in 2012 are Hong Kong, the US and Switzerland. Despite all its setbacks, the US remains at the center of world competitiveness because of its unique economic power, the dynamism of its enterprises and its capacity for innovation.

    Top Ranks - The World Competitiveness Scoreboard
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    The World Competitiveness Scoreboard presents the overall rankings for the 58 economies covered by the WCY. The economies are ranked from the most to the least competitive and the results from the previous year's scoreboard are shown in brackets.

    For further ranks and to view the official IMD press release dated May 31, 2012

    Business in Switzerland**|**AmCham Switzerland
     
  10. INDIAN NATIONALIST

    INDIAN NATIONALIST Major SENIOR MEMBER

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    Lack of innovation per capita has many culprits in India, and I would trace it to problems in population control, nutrition, education, sanitation, &c.
    However, lack of innovative thinking even among students in IIT &c., those that tend to have access to all of the above, reflects an issue fundamentally with culture.
    India is still very conservative and traditional.

    India has an ancient culture that can be a source of wisdom and a boon to development. But tradition should not be the primary mode of thinking. India needs to find a way to encourage rationalism and scientific thinking above tradition.

    Most Indians are still country bumpkins. They don't think deeply about their world; they are raised to behave a certain way and conform to a certain standard. And conformity is sometimes important, but conforming to the right things; the things that benefit national interest.

    India is a representative republic. The PRC fears some of its citizens thinking outside of the box because they will demand greater freedoms. But here's a perfect institutional competitive advantage we have against the Chinese; India's democracy works best when everyone does think creatively and critically about the world. Yet we are failing to encourage this rationalism over traditionalism that can provide us this edge.

    We need an India where people do not default to tradition when making decisions but think critically and deeply on all matters. India needs a cultural revolution, an Indian counterpart to the Enlightenment, that replaces tradition and conservatism with critical, scientific thinking about the deepest aspects of our life and existence and ultimately, national interest. We should weave rationalism into our cultural heritage to produce novel and valuable and characteristically Indian creative works and innovation.
     
    Last edited: Dec 30, 2013
  11. sunny_10

    sunny_10 BANNED BANNED

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    here we have the Industrial Production Growth Rate of India during last decade, as below :tup:

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    India - Industrial production growth rate - Historical Data Graphs per Year


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    here, we hope India might have got the 5th place by 2012 in this regard :tup: :india:

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    => We have data's to 2009 as below, listing the total manufacturing output by countries till 2009 :coffee:

    ; Manufacturing output statistics - countries compared - Nation Master
     
    Last edited: Dec 30, 2013
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  12. sunny_10

    sunny_10 BANNED BANNED

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    improving systems of India, making it stronger and "effective", is one of the prime concerns of my threads. modernisation of Systems of India, to link them with each others to achieve combined national goals, which are to be as effective that it won't get handicapped by corruption/ politics, is a major issue of my participation in politics. im running a whole thread while concerning this issue as below. you are most welcomed to contribute in the thread as below too :tup:

    there is one more thread where I'm trying to mobilize the whole world against India, as below :tup:

    => http://www.indiandefence.com/forums/national-politics/18272-consequences-high-population-4.html


    => http://www.indiandefence.com/forums/social-current-affairs/25226-homeland-security-india-4.html

     
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  13. sunny_10

    sunny_10 BANNED BANNED

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    Outward FDI Exceed Inward Flows
    NEW DELHI, MAY 22

    India’s overseas investments reached close to 27 billion dollars, exceeding the inflows on equity account of Foreign Direct Investment (FDI) in fiscal 2012-13, ASSOCHAM findings revealed here today.

    The study said India’s overseas investment, comprising loans, equity and loans guaranteed aggregated to 26.83 billion dollars in financial year 2012-13, with maximum outflows taking place in October-January. However, the maximum outflow took place in June touching 3.53 billion dollars, the study said.

    It said overseas investments would exceed the FDI inflows on account of equity capital which totalled nearly 21 billion dollars between April- February of the fiscal 2012-13, the latest period for which data is available. Unlike in March, 2012, when one or two big ticket investments had pushed the monthly figure to a new high, there was no major inflow during March, 2013, the study said. :ranger:

    The study says in so far as the outward investments from India are concerned, they have mostly gone to Singapore, the Netherlands and a significant amount to the tax haven of Cayman Islands. For instance in March, out of the 1.88 billion dollars of total overseas investments, close to one billion dollars went to Cayman Islands.

    The study said although India's overseas investment is higher than the inward inflows, the overall investment climate in most parts of the globe is a dampener. “Risk aversion and lack of investment appetite is seen all through. It is not that only India is losing its position as an investment destination, but there is a demand slowdown and over capacity in many parts of the globe,” according to the findings.

    The study reveals that investment from Indian companies abroad has gone in areas relating to manufacturing, trade, restaurants, agri business and mining businesses. :thumb: On the other hand, recent bullish trends in the global stock markets are seen riding on quantitative easing and printing of money by central banks, mainly in the United States, some European countries and significantly in Japan. UNI

    http://mg.glpublications.in/epaperpdf//2352013//2352013-md-hr-2.pdf

    http://mg.glpublications.in/epaperpdf//2352013//2352013-md-hr-2.pdf
     
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  14. sunny_10

    sunny_10 BANNED BANNED

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    China Ranked Most Competitive Manufacturing Nation in the World:china:

    Over the next five years, 20th-century manufacturing stalwarts like the United States, Germany and Japan will be challenged to maintain their competitive edge to emerging nations such as China, India and Brazil, according to the 2013 Global Manufacturing Competitiveness Index report from Deloitte Touche Tohmatsu Limited’s (DTTL) Global Manufacturing Industry group and the U.S. Council on Competitiveness. :tup:

    The report confirms that the landscape for competitive manufacturing is in the midst of a massive power shift – based on an in-depth analysis of survey responses from more than 550 chief executive officers (CEOs) and senior leaders at manufacturing companies around the world.

    (India too looks good as below???? :india:)

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    The 2013 Global Manufacturing Competitiveness Index once again ranks China as the most competitive manufacturing nation in the world both today, and five years from now. Germany and the United States round out the top three competitive manufacturing nations, but, according to the survey, both fall five years from now, with Germany ranking fourth and the United States ranking fifth, only slightly ahead of the Republic of Korea. The two other developed nations currently in the top 10 are also expected to be less competitive in five years: Canada slides from seventh to eighth place and Japan drops out of the top 10 entirely, falling to 12th place.

    (we hope to see India on 2nd place soon, as below :tup:)
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    The report found that access to talented workers is the top indicator of a country’s competitiveness – followed by a country’s trade, financial and tax system, and then the cost of labor and materials. Enhancing and growing an effective talent base remains core to competitiveness among the traditional manufacturing leaders – and increasingly among emerging market challengers as well.

    Manufacturing still matters a great deal for the economic prosperity of 20th century powerhouses – and these nations continue to have enough going for them to stay in the game and even thrive.

    China Ranked Most Competitive Manufacturing Nation in the World - arabiangazette.com
     
    Last edited: Dec 30, 2013
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  15. sunny_10

    sunny_10 BANNED BANNED

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    Will India Match China's Manufacturing Might?

    When C. Northcote Parkinson -- economist, historian and humorist -- wrote "East and West" in 1963, the book's basic theme was that one day, India and China would combine to take on the West. At the time, the Sino-Indian war had just ended, and the book didn't make many waves. Over the past few years, however, things have changed; everyone has been talking about the powerful combination of India's expertise in software and services and China's capabilities in manufacturing. Today, there's a new twist. China has been upping its strength in the former and India has a newfound confidence in its might in the latter.

    This is not confined to the IT arena. "India will emerge as a strong manufacturing base," predicts Janat Shah, a professor of production and operations management at the Indian Institute of Management, Bangalore (IIMB) and founder-chairperson of its Center for Supply Chain Management. Jagdish Sheth, marketing professor at Emory University's Goizueta Business School in Atlanta, adds that India will become "a second sourcing destination" for the world economy.

    The numbers have already started signaling this development. In March, a new United Nations Industrial Development Organization report put India as one of the top 10 manufacturers in 2010. "India tops developing countries (China excluded) in production of textiles, chemical products, basic metals, general machinery and equipment, and electrical machinery," the report noted. In motor vehicle production, the country has overtaken Brazil and is behind only Mexico among developing countries. India's manufacturing value added has grown by over 10%, compared to 3.4% for the industrialized countries. The share of China, India and Brazil in world manufacturing output is now 32%, up from 20% a decade ago.

    Examples of this manufacturing story are everywhere. In March, General Motors India announced that the company wants to become an outsourced vendor of car engines made at the newly-opened Maharashtra plant. The firm also wants to ship the parts to GM's joint ventures in China. GM India's strategy is to find customers for the excess capacity at its US$220 million engine manufacturing plant at Talegaon near Pune. The plant can make 300,000 engines a year, but GM India doesn't need them all immediately. Last year, the company sold 110,000 Chevrolet cars in India, and expects to hit 300,000 only in 2013. "If I need to sell 300,000 engines [annually] domestically, then I need to start filling the gap," GM India president and managing director Karl Slym told business daily Business Standard.

    Pharmaceutical company AstraZeneca sources active pharma ingredients (APIs) from India for use in its global operations, according to James Chelliah, CFO for branded generics operations at AstraZeneca India. "Over the years [sourcing from India] has been increasing year on year by around 100%," he says. "Of course, it's on a small base.... China is big for us from a market perspective. Our China business will be almost US$1 billion this year. But from a sourcing perspective, India is ahead of China."

    Through a partnership between Suzuki and Nissan, Indian subsidiary Maruti Suzuki manufactures the Pixo model compact car for sale in Europe, according to Mayank Pareek, Maruti Suzuki India's managing executive officer for marketing & sales. The Indian auto major is likely to start making vehicles for Volkswagen soon; in 2009, the German carmaker bought a 19.9% stake in Suzuki for US$4.5 billion. "The scope of the tie-up is under discussion between Suzuki and Volkswagen," adds Pareek. :tup:

    At Pfizer India, Thomas Lobo, director of global external supply, says there has been a significant increase in sourcing activity from India with an average annual growth of 35 to 50%. "We source drug formulations, APIs and drug intermediates. India is a leading country in drug product-formulation outsourcing, although we are starting to see competition from other markets, including China."

    The First Awakening

    The potential of Indian manufacturing was first highlighted in a 2005 Confederation of Indian Industry (CII)-McKinsey report titled, "Made in India." According to the report, "In the past, India did not tap into its manufacturing exports potential to the fullest. Going forward, however, Made in India could become the next big manufacturing exports story." Chelliah of Astra Zeneca agrees with that prediction. "India would be much better off in anything that has value-add and needs precision, because of its technical capabilities and qualified manpower," he notes.

    The McKinsey report predicted that the global trend to manufacture and source products in low-cost countries is likely to gain strength over the next decade, "particularly in the skill-intensive industries where India has a significant competitive advantage. If India were to take advantage of this trend, manufacturing exports could increase from US$40 billion in 2002 to approximately US$300 billion by 2015, leading to a share of approximately 3.5% in world manufacturing trade."

    But the report warned that in order to be successful, Indian companies needed to "adopt a global mindset to build scale and achieve cost excellence; acquire market access rapidly, including using inorganic routes such as acquisitions where required; strengthen design and innovation skills; build a global or regional operating footprint, and master the ability to manage a world-class talent pool and organization." :coffee:

    Indian companies are now preparing to go the extra mile. A Capgemini-IDG research report titled, "Manufacturing in 2020," found that Indian companies "claim they will lead the pack in customer collaboration in 2020, a position they already say they hold. All the responding Indian companies say they already collaborate with customers at the R&D level. This could reflect the historical lack of manufacturing in India, and a strong national desire to 'catch up.'"

    India's rise in the manufacturing arena has to come at somebody's cost -- namely, China's, experts say. China has built its economic fortunes over the past three decades with large-scale, low-cost outsourced manufacturing for global markets. But economists have long predicted that China will cede its outsourced manufacturing base to other developing countries as its working-age population declines in the coming decades. The country has periodically battled threats to its status as a low-cost manufacturing hub -- a designation that has been helped by massive investments in infrastructure, education and training, and state incentives.


    The China Factor

    Are China's problems a passing phase? "This is not a flash in the pan," says Marshall Meyer, a Wharton professor of management and sociology. "Efficient and younger-age factory workers have been in short supply." In addition, factory wages have risen around 50% in the country's southern provinces like Guangdong that lead the export juggernaut.

    According to Meyer, the Chinese central bank's efforts to contain inflation by limiting liquidity aren't working as intended. "Inevitably there is leakage," he says, adding that money supply has risen 52% in the past two years. "This creates a very powerful inflationary force. One way or another, goods coming out of China will cost more ... [and business] will go where costs are lower." China's "weak spots" are in low-margin manufacturing such as garments, toys, pharmaceuticals and foods, some of which could head to Vietnam, Indonesia and Sri Lanka, he notes.

    Lower costs alone will not tilt the scales, however. Many Western companies head to India for outsourcing manufactured parts and sub-assemblies because China lacks the required expertise. "We have been seeing increased activity in sourcing from India, primarily in components requiring some degree of complexity," says Ketan Chandarana, a partner at Synergy, a Bangalore-based consulting firm. Synergy advises mostly multinational firms in outsourced manufacturing. His clients prefer India also in cases that call for "sensitivity" to intellectual property rights and manufacturing in low-to-medium volumes with high degrees of variation in products.

    Among Synergy's clients is a Canadian maker of high voltage electrical equipment that two years ago needed a wide variety of components but in volumes ranging from a few hundred pieces to tens of thousands. "They tried to source from China, but were not able to get the quality levels and attention to detail," Chandarana notes. The company now sources brass components from Gujarat and Karnataka.

    India has traditionally had an edge in high-end manufacturing with lower volumes relative to China and design-intensiveness, according to Shah of IIMB. "India's problems are in low-end manufacturing, where wage costs play a role. Higher-end manufacturing is not that sensitive to wage costs.":truestory:" India will enhance its overall manufacturing competitiveness in the next five years, according to a June 2010 Deloitte study that gives China a current score of 10 in that area and 8.15 to India. Five years from now, however, the study projects India advancing to a score of 9, with China staying at 10. In addition to India and China, Korea, the U.S. and Brazil were ranked as Deloitte's top five countries in manufacturing competitiveness. :coffee:


    Investing in India

    Global companies attracted to India's markets also realize they need to invest in local manufacturing for maximum advantage, according to Prabhudev Konana, a professor of business at the McCombs School of Business in the University of Texas at Austin. "You cannot tap a growing market by being outside. You want to be inside, closer to the market." All the major global automobile manufacturers, including General Motors, Ford, Nissan and Hyundai have invested in manufacturing in India with an eye on exports to third-country markets, he adds. It also helps that the Indian market "is very similar to a lot of Asian countries and Africa.... Roads are not wide and not designed for big vehicles."

    Chinese companies are not sitting quiet as their outsourcing clients get restive. "Chinese companies and the state, [which are] often hard to separate from each other, are aware of the pressures on their competitiveness, most immediately from rising wages," says Tarun Khanna, a Harvard University professor and author of the 2007 book, "Billions of Entrepreneurs," which tracks entrepreneurship trends in China and India. China has responded with two "structural" solutions, Khanna adds. "The first is to encourage a 'Go West' policy to tap into the still incredibly-large labor pools available in the western part of the country, a process now underway for some time. The second is to compel foreign investors to disseminate technology to domestic companies, so that the local entities can begin to compete on non-price dimensions and move up the proverbial value chain."

    Those new controls should be "serious food for thought" for multinationals entering China these days, according to Khanna. He also noted an increasing fear that foreign investors "will not be allowed to achieve critical scale in China." If MNCs get too big for comfort in China, the government could extend preferential treatment to local companies "to contain over-reliance on outside investors," Khanna says, a new approach that contrasts with China's pampering of foreign investors with tax and other incentives since seeking them out in 1980. China started phasing out incentives five years ago.

    India's reluctance in earlier years to welcome foreign investments brought unintended benefits in grooming local manufacturing, according to a 2003 paper titled, "Can India Overtake China," written by Khanna and Sloan School of Business professor Yasheng Huang. They wrote that as the Chinese economy took off in the past two decades, "Few local firms have followed, leaving the country's private sector with no world-class companies to rival the big multinationals." By contrast, India "took a dim view of Indians who had gone abroad, and of foreign investment generally, and instead provided a more nurturing environment for domestic entrepreneurs. In the process, India has managed to spawn a number of companies that now compete internationally with the best that Europe and the U.S. have to offer."

    A Second Sourcing Destination

    Emory's Sheth offers four reasons for India becoming a second sourcing destination. For one, India's large market for everything from cars to cell phones will attract investments in capacities that will be used also to supply West Asia and Africa. Secondly, as China grows, it will "selectively divest low-end manufacturing to other parts of the world to protect its own resources." Third, by using modern manufacturing techniques to tap into its vast agricultural and industrial resources, India can lower costs and improve its competitiveness. His fourth reason: "India is becoming a strategic alliance partner with America," the world's largest market. He sees India and China sharing a common destiny along with America as partners. :coffee:

    Some of initiatives currently underway, including a plan to implement a uniform goods and sales tax and a direct tax code, could help boost India's manufacturing competitiveness, Shah of IIMB notes. Dedicated freight corridors along eastern and western India totaling 2,762-kilometer (1,716 miles) would increase freight movement capacity, although they are set to open no earlier than 2017. India's latest budget also allocates Rs. 500 crore (US$110 million) for the government's National Skills Development Fund, which has a target of providing job training to 500 million people by 2022. The University of Texas' Konana would like to see that implemented with missionary zeal. "For China, it is an obsession; they are training large numbers of people with passion. One CEO told me they are teaching English in stadiums in China."

    China's latest challenges do not translate into automatic wins for India, warns Khanna. "Can India benefit from this re-calibration? In a sense, yes, but probably no more than before." The primary deterrent to investment in India "will be internal to India," he notes, listing "good infrastructure" and "low-hassle processes" as the chief inducements. Investors are also wont to make politically correct noises about the need for democratic institutions and transparent processes, but they sometimes ring hollow, says Konana. "Most U.S. companies love China because it provides stability. That is where I see the hypocrisy. India is a democracy but they don't like the uncertainty [that goes with the territory]."

    Will India Match China's Manufacturing Might? - India Knowledge@Wharton
     
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