Why make in India can't compete with make in China, economists found the gap formation of 7 big factors:- www.deekpay.com

Title : Why Make in India can't compete with Make in China, economists find 7 factors that create the gap

As the global economy continues to grow, manufacturing has become an important area of competition among countries. China and India, as populous countries, have always been in the spotlight when it comes to manufacturing. However, over the past few decades, while Made in China has been consolidating its position in the global market, Made in India has never been able to compete with it. Through in-depth research, economists have identified 7 major factors why Make in India can't compete with Make in China.

I. Poor infrastructure

India's infrastructure development is relatively backward, with serious deficiencies in transport, communications, energy and other infrastructure. This leads to higher production costs in the Indian manufacturing industry and low operational efficiency of enterprises. China, on the other hand, has a clear advantage in this regard, with perfect infrastructure, providing a favourable environment for enterprises to develop.

II. Lack of labour cost advantage

Despite its large population, India does not have a significant labour cost advantage. India's labour market is heavily segmented, with a large proportion of the informal sector, which makes the quality of the labour force uneven. China's manufacturing sector, on the other hand, has a higher quality labour force and relatively lower costs, which gives Chinese manufacturing a competitive advantage in the international market.

III. Incomplete industrial chain

India's manufacturing industry chain is relatively incomplete, and many key components and raw materials are dependent on imports. This makes the Indian manufacturing industry production costs are high, and vulnerable to the impact of international market fluctuations. China's manufacturing industry chain is complete, with a strong anti-risk ability.

IV. Insufficient policy support

The Indian government's support for the manufacturing industry is relatively insufficient and the policy environment is not friendly enough. There are many problems in tax policy, land policy and other aspects, resulting in high operating costs for enterprises. The Chinese government, on the other hand, has given strong support in the process of manufacturing development, creating a favourable policy environment for enterprises.

V. Inadequate technological innovation capacity

India's manufacturing sector is relatively weak in technological innovation and lacks core competencies. This makes it difficult for Indian manufacturing to compete with other countries in the international market. In contrast, China's manufacturing industry has achieved remarkable results in technological innovation and continues to improve its competitiveness.

VI. High market access thresholds

India has high market access thresholds and more restrictions on foreign firms. This makes it difficult for foreign enterprises to enter the Indian market, limiting the development of the Indian manufacturing industry. While China's market access threshold is lower, attracting a large number of foreign enterprises to invest, promoting the rapid development of the manufacturing industry.

VII. Cultural differences

China and India are culturally different, which also affects the development of the manufacturing industry to a certain extent. China's manufacturing industry focuses on teamwork and orderly internal management, while India's manufacturing industry focuses more on individualism and relatively chaotic internal management.

In short, the reasons why India's manufacturing cannot compete with China's manufacturing are manifold. To change this status quo, the Indian government and enterprises need to start from the infrastructure construction, labour quality improvement, industrial chain improvement, policy support, technological innovation, market access and cultural differences, and strive to enhance the competitiveness of India's manufacturing industry.