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Made in India, Industries of India

Discussion in 'World Economy' started by santosh, Mar 30, 2014.

  1. santosh

    santosh Major SENIOR MEMBER

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    The Indian Advantage: Asia’s Next Manufacturing Juggernaut
    August 18, 2014
    By Shawn Greene

    According to Deloitte’s Global Manufacturing Competitiveness Index, India is currently the fourth most competitive manufacturing destination worldwide and is forecast to become second only to China by 2018. Although India’s appeal as a manufacturing and sourcing jurisdiction comes primarily from its labor cost advantage, the country’s poor infrastructure and complex regulatory environment have hindered manufacturing sector growth in recent years. With Narendra Modi’s BJP now in control of the country’s first majority government in three decades, India will soon be poised to undermine China’s manufacturing edge through the introduction of policy and labor reforms, investment incentives, and improvements to the country’s outdated transportation and power supply networks.

    Infrastructure and regulatory obstacles aside, India features nearly all of the key ingredients necessary to transform its economy into a manufacturing juggernaut: a demographic dividend, attractive domestic market, comparative advantage in shipping and labor costs, an inexpensive currency relative to the dollar, and low political risk. As the BJP mulls an overhaul of India’s antiquated labor laws and the introduction of China-style manufacturing incentives to the country’s FY2015 budget, India’s competitiveness as a manufacturing and sourcing jurisdiction is set to increase substantially in the near to medium-term.

    The Indian manufacturing sector is commonly divided into organized and unorganized segments that correspond with what economists traditionally refer to as “formal” and “informal” sectors in developing economies. Organized manufacturing refers to activities carried out by businesses that are officially registered with the government, while unorganized manufacturing is conducted by smaller, unlicensed enterprises and often features low wages, unstable and irregular employment, and weak or nonexistent government protection for laborers.

    Despite recent progress towards modernization, India’s unorganized sector still accounts for around 80 percent of all employment in manufacturing—emblematic of many developing economies which typically feature around 90 percent of all workers in the informal sector. It is India’s organized manufacturing sector, however, that is of primary interest to foreign investors and which—despite employing significantly fewer laborers—generates over two-thirds of the country’s total manufacturing output.

    Accounting for 15 percent of India’s total GDP, the manufacturing sector has grown steadily in recent years as rising costs in China and elsewhere have led foreign firms to seek out alternative locations for manufacturing and sourcing operations. Between 2006 and 2011, India’s manufacturing sector sustained a compound annual growth rate (CAGR) of 17.1 percent, principally in textile goods, engineering goods, automobiles, and chemicals. At the current growth rate, the McKinsey Global Institute projects that by 2025, the sector will reach a value of US$1 trillion, account for 25-30 percent of the country’s overall GDP, and generate up to 90 million new domestic jobs.

    [​IMG]

    India’s Edge: Labor Costs

    India’s labor costs consistently rank among the lowest worldwide and are often cited as the country’s principal advantage as a manufacturing base. According to the Bureau of Labor Statistics, average labor compensation (including pay, benefits, social insurance, and taxes) in India’s organized manufacturing sector have only increased marginally in recent years, from US$0.68 per hour in 1999 to around US$1.50 per hour today, and from US$0.53 to US$1.00 among production workers over the same period.

    When compared with an average compensation of US$3.00 per hour in China’s manufacturing sector (a 20 percent year-on-year increase fueled by an annual 13 percent rise in China’s minimum wage), India’s labor cost advantage places the country in more direct competition with emerging manufacturing jurisdictions such as the Philippines and Vietnam over now-declining China, Thailand, and Malaysia.

    [​IMG]

    In addition to being extremely cost competitive, India’s nearly 500 million strong labor force offers manufacturers access to not only a substantial population of unskilled workers, but also a rich talent pool of English-speaking scientists, researchers, and engineers capable of lending cost-effective research and development support to manufacturing operations. After more than 37 million workers chose to leave India’s agricultural sector for better-paying manufacturing jobs between 2005 and 2012, a slowdown in manufacturing activity last year (a 0.7 percent contraction) stranded a large segment of the population in low-wage, rural employment. Partly as a result of this contraction, the demand for manufacturing-based employment has never been higher, and pressure has begun mounting for the Indian government to take concrete steps to foster the creation of enough manufacturing jobs (roughly 12 million per year) to absorb the country’s impending demographic dividend.

    Future Prospects

    Over the next decade, two key policy areas—labor reform and retrospective taxation—are likely to determine the future appeal of India’s manufacturing sector to foreign investors. Initially created to enhance worker welfare, India’s outdated labor laws have often had the opposite effect by encouraging manufacturers to stay small and operate primarily in the unorganized sector to circumvent legal regulation. India’s terms of work, hiring and firing, and working conditions are stipulated by the Industrial Dispute Act of 1947, Factories Act of 1948, and Contract Labor Act of 1970. These are among several prominent labor laws that continue to drive up costs for midsized firms and typically lead to the hiring of unskilled contract workers in informal sector operations.

    Fostering a stable and transparent economic climate for foreign investment—partly through the abandonment of India’s controversial retrospective taxation policies—has been identified as a key area for reform by the Modi administration. With several multi-million dollar tax disputes still in limbo, standardizing India’s fiscal, tax, and policy regimes alongside the timely resolution of these disputes could deliver the business confidence needed to expedite the migration of manufacturing operations to India.

    As Narendra Modi settles into office, foreign investors are optimistic that the BJP’s rare parliamentary majority will provide respite from the coalition deadlock that has obstructed tangible policy reform for more than three decades. If the BJP’s promised labor and FDI reforms come to fruition, the meteoric growth of India’s domestic market, combined with US$1 trillion in planned infrastructure investment and an ambitious National Manufacturing Policy (NMP), is set to reap significant dividends for the manufacturing sector later this year. Aiming to increase the sector’s share of GDP to 25 percent by 2020, the NMP outlines a roadmap for streamlining investment and taxation policies while improving core infrastructure such as railways, roads, and ports. With growth in India’s manufacturing sector outpacing China’s in June and reaching its highest rate of expansion since February 2013, it is more than possible that India’s rise has already commenced.

    This article is an excerpt from the July 2014 edition of Asia Briefing Magazine, titled “Manufacturing Hubs Across Emerging Asia.” In this issue, we explore several of the region’s most competitive and promising manufacturing locales including India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam. Exploring a wide variety of factors such as key industries, investment regulations, and labor, shipping, and operational costs, we delineate the cost competitiveness and ease of investment in each while highlighting Indonesia, Vietnam and India’s exceptional potential as the manufacturing leaders of the future.

    The Indian Advantage: Asia’s Next Manufacturing Juggernaut - India Briefing News

    The Indian Advantage: Asia’s Next Manufacturing Juggernaut - India Briefing News
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  2. santosh

    santosh Major SENIOR MEMBER

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    self deleted
     
  3. santosh

    santosh Major SENIOR MEMBER

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    View attachment 811

    Styles may be short lived, but for well over seven decades Arvind has been defining and shaping many a collection and trendsetting styles across the ramps and retail outlets of the fashion capitals of the world. Arvind is today synonymous with a vast range of lifestyles products - be it fabrics or brands. Time and again we have been called to produce some of the finest fabrics and exacting dresses for some of the world's most quality conscious brands - while evolving our own extensive brand portfolio.

    Arvind Limited

    [​IMG]

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    Arvind Limited (formerly Arvind Mills) is a textile manufacturer and the flagship company of the Lalbhai Group. Its headquarters is in Ahmedabad, Gujarat, India. It manufactures cotton shirting, denim, knits and bottomweights (Khakis) fabrics. It is India's largest denim manufacturer [3] apart from being world’s fourth-largest producer and exporter of denim. :tup:

    Sanjaybhai Lalbhai is the Chairman & Managing Director of Arvind & Lalbhai Group. In the early 1980s, Sanjay Lalbhai led the 'Reno-vision' whereby the company brought denim into the domestic market, thus starting the jeans revolution in India.[4] Today it retails its own brands like Flying Machine, Newport and Excalibur and licensed international brands like Arrow, Lee, Wrangler and Tommy Hilfiger, through its nationwide retail network. Arvind also runs a value retail chain, Megamart, which stocks company brands.[5][6]

    Arvind Limited - Wikipedia, the free encyclopedia


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    Arvind Cotsyn (I) Ltd. Yarn spinning mills in india spinning mills in maharashtra indian spinning mills


    Arvind Limited

    Arvind Limited
     
  4. santosh

    santosh Major SENIOR MEMBER

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  5. santosh

    santosh Major SENIOR MEMBER

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    Luxury carmaker does profit U-turn

    [​IMG]
    The Range Rover Evoque is the latest in the luxury brand's line-up, and goes on sale in Australia later this year.

    In one of the greatest industrial turnarounds in British corporate history, Jaguar Land Rover, the luxury carmaker so troubled during the depths of the recession that there were fears it could go bankrupt, has reported a profit of more than £1 billion ($1.54bn). :cheers:

    Tata, the Indian parent of the British manufacturer, reported that JLR made a profit after tax of £1.043 billion ($1.6 billion) in the financial year to March 31, compared to £32 million ($49.3 million) the previous year. :india:

    The rebirth of the carmaker comes courtesy of the strong overseas demand for Jaguars, Range Rovers and Land Rovers which has made the company one of the UK's most important exporters.

    Last year, more than 77 percent of JLR's output of about 240,000 cars were bound for shipment, with China for instance now making up a fast-expanding 10 per cent of its market.

    JLR is also Britain's single largest automotive employer, with nearly 20,000 staff.

    Carl-Peter Forster, chief executive of Tata Motors, the Indian company which bought JLR from Ford for €2.3 billion ($3 billion), said, "Jaguar Land Rover is now a strong, profitable and innovative competitor in the premium car industry and will deliver even more attractive models and technologies to customers worldwide."

    The new baby Range Rover, the Evoque, is being launched in the US this northern summer and the company has also committed to the construction of a limited edition hybrid electric-powered supercar, the Jaguar C-X75.

    Cookies must be enabled. | The Australian
     
  6. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    Disadvantages labor productivity 15% of US productivity. So it still cost 8 times as much labor or $11.46 an hour to produce what the USA does an hour.
     
  7. INDIAN NATIONALIST

    INDIAN NATIONALIST Major SENIOR MEMBER

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    India can't afford to assume that as wages rise in China, manufacturing must be outsourced to India instead.

    Firstly because businesses already have established relations with Chinese manufacturers and there is some additional cost to switching to another base.

    Secondly, even if overhead cost of labor becomes high enough with development in China to mitigate that advantage, Chinese are already investing in automation to replace labor force.

    There's only a finite amount of time before automation replaces unskilled labor worldwide, which means at some point manufacturing will stop being outsourced altogether, and that's not a strategy developing nations can depend upon for investment.

    If India sits back and waits for the rest of the world to empower it, then it should expect to be disappointed at some point.

    One positive aspect of India's path to economic development is that it has embraced development of its tech servicess sector disproportionate to other developing economies, which makes sense because Indian culture and being multilingual / understanding English provides Indians a slight advantage here; service sector jobs requiring less skill can still be replaced say by primitive AI, but jobs requiring a degree of creativity can not be replaced as easily as unskilled labor can be replaced by robots that do menial tasks far more efficiently than humans, even at minimum livable wages.

    Still, as a superpower, India will need to produce and maintain an extremely diverse base of manufacturing infrastructure and human capital, large enough to secure all of India's domestic demand and fuel its own supply line while remaining internationally competitive to standards of other modern economies if necessary. While not inconceivable, that's a tall order, and it's not going to be a reliable strategy to wait for jobs to be outsourced to India.

    Perhaps this can be resolved if India adopts high-tech manufacturing and labor automation early in its development, in order that as China embraces automation, India will already have developed some significant competence here, instead of forcing as much government investment into developing manufacturing job opportunities for unskilled laborers simply in an effort to pre-empt all demand outsourced away from China. India can also continue to focus government investment disproportionately on its competitive advantage of training for outsourced tech service-sector positions to absorb its large labor force looking for better employment.

    That, and protectionism + family planning. We may be able to rely on investment into positions for basic laborers today, but in the intermediate future, having a large population of unskilled laborers isn't going to generate any wealth for any nation, and will only be a liability.

    Now, maybe it turns out that , India will be able to absorb all that demand after China. That is still a possibility; but India must be weary and prepared.
     
    Last edited: Mar 31, 2015
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  8. santosh

    santosh Major SENIOR MEMBER

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  9. santosh

    santosh Major SENIOR MEMBER

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    double post
     
  10. santosh

    santosh Major SENIOR MEMBER

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    Rs 51.46 lakh cr to be allocated for infrastructure during 12th Plan
    September 12, 2012

    The Planning Commission is aiming at a total outlay of Rs 51.46 lakh crore in the infrastructure sector during the 12th Plan (2012-17), short of the earlier projection of $1 trillion (about Rs 55 lakh crore).

    "The total investment during the 12th Plan is projected at Rs 51.46 lakh crore compared to Rs 27.74 lakh crore realised during the 11th Plan", a source privy to the development said.

    While the public investment in the infrastructure sector is expected to decrease to 53.32 per cent in the 12th Plan from about 62.47 per cent in the previous Plan, the share of private sector is projected to increase to 46.68 per cent from 37.53 per cent.

    Sources further said that infrastructure sector investment as percentage of the Gross Domestic Product (GDP) is expected to rise steadily to 10.40 per cent in the terminal year (2016-17) of the 12th Plan. :thumb:

    The average investment in infrastructure sector for the 12th Plan as a whole is likely to be about 9.14 per cent of the GDP :thumb:, as compared to 7.22 per cent during the previous Plan. As per the details, the highest investment is envisaged in power sector at about Rs 15 lakh crore, roads follow at Rs 9.2 lakh crore, telecommunication at Rs 8.84 lakh crore and railways at Rs 4.56 lakh crore.

    These proposals will be placed before the meeting of the Full Planning Commission to be chaired by Prime Minister Manmohan Singh on Saturday.

    Although the Prime Minister in March 2010 had pegged the investment target for infrastructure sector during the 12th Plan at $1 trillion, the figures in dollar terms have to be revised in view of falling value of rupee. :tup:

    Rs 51.46 lakh cr to be allocated for infrastructure during 12th Plan - NDTVProfit.com
     
  11. santosh

    santosh Major SENIOR MEMBER

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    India needs to raise infrastructure spending to 10% of GDP

    India needs to raise infrastructure spending to 10 per cent of GDP to achieve and sustain economic growth target of 9 per cent in the coming years.

    "In order to sustain growth targets, this (investment in infrastructure) would need to increase further to over 10 per cent of GDP by 2017," IDFC Projects Ltd Managing Director Pradeep Singh said in a presentation at the annual meeting of Asian Development Bank here. :coffee:

    India's infrastructure spending is 8 per cent of the Gross Domestic product, as against China's 9 per cent, he said. The country's GDP was $1.4 trillion at the end of March 2011.

    Acknowledging that India has a long way to go in terms of meeting its infrastructure requirements, Singh said the 12th Five Year Plan (2012-17) envisages $1 trillion investment in the sector. :coffee:

    Of the total targeted investment, private sector is expected to invest $500 billion - with around $350 billion through debt and $150 billion of equity over next five years.

    Domestic funding sources, Singh said, will not be sufficient to meet these needs.

    However, during the 11th Plan period ended in March, investment in infrastructure sector fell short of its target of $500 billion. :facepalm:

    Total investments during the past five years was about $425 billion, Singh said.


    Despite the aggressive growth in last five years, India's basic infrastructure ranked 86th in Global Competitive Report-2010 by World Economic Forum, he pointed.

    Projecting India as investment destination, State Bank of India Chairaman Pratip Chaudhuri said, in a separate presentation, that Qualified Foreign Investors were allowed to directly invest in Indian equity market in January.

    Besides, he said, the overall FII investment limit in government securities and corporate bonds has been enhanced to $60 billion.

    Chaudhuri also said India has a well regulated banking system, with 98 per cent of the banks fully computerised.

    India needs to raise infrastructure spending to 10% of GDP: IDFC Projects - timesofindia-economictimes
     
  12. santosh

    santosh Major SENIOR MEMBER

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    @Picdelamirand-oil
    @Averageamerican

    we always have question on the credibility of these news, as below. but it may also have a place here, i think :coffee:

    here, we expect India to ranked higher in future consider hefty investment in infrastructure. i would be more happy to see India to be put in the category of Brazil, Thailand, South Africa :tup:
     
    Last edited: May 11, 2015
  13. santosh

    santosh Major SENIOR MEMBER

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    .
    the listing as below put India on a higher rank at 35th, even if its put among the "lower" income group counties as below.

    too many ways of deriving a formula to measure something, and they do have something in this report, :coffee:

    https://www.ifw-members.ifw-kiel.de...uction-rankings-and-applications/KWP_1929.pdf
    .
     
  14. santosh

    santosh Major SENIOR MEMBER

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    Futron Releases 2012 Space Competitiveness Index

    Futron has released its 2012 Space Competitiveness Index marking the 5th anniversary of the yearly publication. According to the report, the United States remains the overall leader in space competitiveness but is seeing a decline for the 5th year in a row.

    The decline is attributed to enhanced capabilities in other countries while the U.S. is undergoing a transition with "significant" uncertainty.

    New to the index this year are emerging space nations Argentina, Australia, Iran, South Africa and the Ukraine.

    Four distinct tiers have emerged. The first tier has the U.S., Europe, and Russia. The second tier China, Japan, India, and Canada. The third tier South Korea, Israel, and Brazil. And the fourth tier Argentina, Australia, Iran, South Africa and the Ukraine.

    Futron says the top two tiers remain dynamic but have shown some stabilization while the bottom two tiers are subject to intense competition, with very small gaps in the competitive rankings.

    [​IMG]

    China gained the most competitiveness basis points in 2012, followed by Europe, India, and Israel. Japan lost the most basis points, followed by Canada, South Korea, and the United States. When compared against the larger group of 15 nations, Brazil falls to 11th place, just below Australia.

    As has been noted before International collaboration is increasingly taking shape as a concerted space competitiveness strategy, especially among smaller actors.

    Here's a list of some of the findings by country:

    - Argentina is adapting its satellite manufacturing sector for the international marketplace, exploring both commercial and government-to-government deals. It stands to benefit from increased investment in spacecraft subcomponents.

    - After more than a decade of dormancy, Australia is back. The government is refreshing its national space policy segment-by-segment, focusing on space not only a driver of innovation and expertise, but also for its benefits to Australian society.

    - Brazil has begun to re-examine its national space priorities, increased funding, expanded its partnerships, and laid plans for a new launch vehicle. It remains to be seen whether these steps will keep Brazil ahead of regional counterparts that are also emerging onto the space scene.

    - Canada retains a skilled space workforce, but delays in space policy refresh and implementation are significantly offsetting these competitive advantages.

    - China performed a record number of launches in 2012, surpassing the United States for the first time, while increasing investment in technical education programs and civilian research institutes.

    - Europe's integrated approach is complemented by the rise of new national space agencies across the continent--from the United Kingdom to the Czech Republic to Estonia--as well as more assertive space export financing.

    [​IMG]

    - India is enhancing its space-related technical education, while gradually progressing toward a completely self-reliant set of next generation launch vehicles.

    - Iran has made faster progress than any other newly emergent space nation. The tenor of Iran's space program--civilian or military--will hinge on geopolitics. Other international actors have substantial power to influence the future focus of the Iranian space program.

    - Israel, despite funding increases, remains challenged by its lack of domestic industry scale, and has difficulty sustaining a commercial space presence in global markets.

    - Japan, despite ongoing benefits from its policy reforms, is losing competitive ground relative to most other actors, and can benefit from a greater focus on commercializing its industrial base.

    - Russia's remains the world's launch leader, and promises to retain that role in the near term thanks to its vital role in transporting astronauts and cargo to the International Space Station, as well as the introduction of Soyuz launches from the European spaceport at Kourou. These strengths, however, are offset by weaknesses in retention of human capital talent.

    - South Africa is divided, from a budgetary standpoint, between space investments focused on societal usage of external assets already in space and investments focused on building the country's own space industrial base.

    - South Korea's two failed launch attempts contributed to an organizational shakeup, but have not reduced its determination to become the newest country to achieve independent spaceflight.

    - Ukraine has an enviable space industrial base, but limited domestic demand for its space hardware. It is aggressively seeking partners overseas, but has not yet engaged with key emerging markets.

    Futron Releases 2012 Space Competitiveness Index - Commercial Space Watch
     
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  15. santosh

    santosh Major SENIOR MEMBER

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    India Gains on China in Asia's Space Race :cheers:

    Asia's space race just got a whole lot tighter: India's successful launch on Wednesday of its first moon mission, the unmanned Chandrayaan-I, marked a dramatic step forward in its race with China to put a man on the moon. China had stolen a march in 2003 by becoming only the third nation to fly a man into space (after the U.S. and the old Soviet Union), but when, ten days from now, Chandrayaan-I drops a probe bearing India's flag onto the moon, India will become only the fourth country to plant its colors on the lunar landscape — after the Americans, the Russians, and Japan. :india: The mood in the control room was of jubilation as stern-faced scientists relaxed and broke into applause when all the separation processes were completed smoothly. With space capability deemed to translate into greater technological standing and strategic clout, the moon mission has been a giant ego-boost for India. "It is a proud moment for us," Science and Technology Minister Kapil Sibal said after the countdown began on Monday.

    India Gains on China in Asia's Space Race - TIME
     
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