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Monday, April 27, 2009
Lessons that India can learn from China.
Since in most of the issues India is compared with China, lets discuss in what areas India needs improvement n what all stuff it can learn from China so that it gets ahead in race.
India & China two big economies by size from asian subcontinent, and these two nations are considered as future Global drivers replacing US, EU & Japan. China is considered as Manufacturing hub, it manufactures wide range of products at affordable prices. Please dont consider that Chinese products are low cost with short life span, actually their manufacturing strategy and therefore quality differes for various customers, they provide good quality products to US and on the other hand inferior quality products to underdeveloped nations. China is considering IT industry as a new low cost industry they are competing directly with India. Low costing and therefore global market share is the result of their systematic approach, Working attitude & their Industrial Policies.
Industrial Policies- Our Industrial Policy is some what less Industrial Friendly, every where there is Politics, take the examples of TATA NANO, Videocons SEZ at Navi-Mumbai, Reliances SEZ at Ratnagiri etc. all are coupled with politics, leading to increased Project duration & cost factor multiplication. Chinas Biggest SEZ is equivalent to Indias all SEZs. Its required to take Industrial orientated policies without hampering agricultural Industry.
Systematic approach/Solution is there with us but the problem is of systematic implementation we need to learn this from them, please look at their assembly line layouts which are very precisely designed leading to reduced lead time.
Working Attitude & Environment- We have nice Labour policy, but in our organisation especially Govt. organisations there is no definite Responsibilty structure, its required to develop definite structure.
we have to explore the political, financial, technological & social fronts of both the countries. Where India has multiparty system, china has prominent bi-party political system. Today per capita income of china is double that of India. Chinese economy has heavy weight on manufacturing industry, where India has services industry on high. Manufacturing industry produces more jobs for internal population reducing unemployment. Our labour laws, which protect existing employment but at the cost of creating new jobs, have created a bias in favour of capital-intensive investments. While providing attention to economical development china has attended social front also. One child policy controlled the population of china. Creation of the giant Three Gorges Dam, maglev trains provides a strong outlook on infrastructure improvements of china. These are some of the plus points of china which India should consider.
though India & China are considered as the next global drivers we can learn a lot from China. Firstly why does China get 60 billion dollars approx and India less than 6. India though provides political stability, human capital & the size of the market China on the other hand has continued to take strategic policy initiatives, has opened up its economy & has made many structural changes.
Though i don't agree with Tushar when he said "China provides good quality products to US and on the other hand inferior quality products to underdeveloped nations."
Most of the products they export to the U.S is the same they export everywhere. The difference is the laws placed by the U.S. not to allow import of goods produced by China that can harm people or children in any way. For eg. few of the toys produced by China which had high Lead content in it was banned by the U.S. but the same are still in India and there are many people who buy it in spite of knowing that it can harm their children.
India & China two big economies by size from asian subcontinent, and these two nations are considered as future Global drivers replacing US, EU & Japan.
ReplyDeleteChina is considered as Manufacturing hub, it manufactures wide range of products at affordable prices. Please dont consider that Chinese products are low cost with short life span, actually their manufacturing strategy and therefore quality differes for various customers, they provide good quality products to US and on the other hand inferior quality products to underdeveloped nations. China is considering IT industry as a new low cost industry they are competing directly with India.
Low costing and therefore global market share is the result of their systematic approach, Working attitude & their Industrial Policies.
Industrial Policies- Our Industrial Policy is some what less Industrial Friendly, every where there is Politics, take the examples of TATA NANO, Videocons SEZ at Navi-Mumbai, Reliances SEZ at Ratnagiri etc. all are coupled with politics, leading to increased Project duration & cost factor multiplication. Chinas Biggest SEZ is equivalent to Indias all SEZs. Its required to take Industrial orientated policies without hampering agricultural Industry.
Systematic approach/Solution is there with us but the problem is of systematic implementation we need to learn this from them, please look at their assembly line layouts which are very precisely designed leading to reduced lead time.
Working Attitude & Environment- We have nice Labour policy, but in our organisation especially Govt. organisations there is no definite Responsibilty structure, its required to develop definite structure.
we have to explore the political, financial, technological & social fronts of both the countries. Where India has multiparty system, china has prominent bi-party political system. Today per capita income of china is double that of India. Chinese economy has heavy weight on manufacturing industry, where India has services industry on high. Manufacturing industry produces more jobs for internal population reducing unemployment. Our labour laws, which protect existing employment but at the cost of creating new jobs, have created a bias in favour of capital-intensive investments. While providing attention to economical development china has attended social front also. One child policy controlled the population of china. Creation of the giant Three Gorges Dam, maglev trains provides a strong outlook on infrastructure improvements of china. These are some of the plus points of china which India should consider.
ReplyDeletethough India & China are considered as the next global drivers we can learn a lot from China. Firstly why does China get 60 billion dollars approx and India less than 6. India though provides political stability, human capital & the size of the market China on the other hand has continued to take strategic policy initiatives, has opened up its economy & has made many structural changes.
ReplyDeleteThough i don't agree with Tushar when he said "China provides good quality products to US and on the other hand inferior quality products to underdeveloped nations."
Most of the products they export to the U.S is the same they export everywhere. The difference is the laws placed by the U.S. not to allow import of goods produced by China that can harm people or children in any way.
For eg. few of the toys produced by China which had high Lead content in it was banned by the U.S. but the same are still in India and there are many people who buy it in spite of knowing that it can harm their children.