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Sep29
Manufacturing: India vs China
India is coming out to capture a big share in manufacturing industry in the coming days. Though China is still leading in manufacturing sector in the world, it seems that India wants to throw a big challenge to China in near future. Recently a survey was done on 340 global companies where it has been seen that more than half of the companies are interested to conduct their business in India. The main reason of such move in global market is the ever increasing high cost in China compared to the cheap cost in India.

 

The Economic Times reported:
“Some of the main manufacturing locations in China are becoming too expensive relative to other countries in the region, which includes India,” according to the findings from the study.
China’s problems start with the quality of its infrastructure. Most of the manufacturing is centred around the major cities of Shanghai and Beijing. The clustering of manufacturing centres around the major eastern coastal regions in China led to a surge in labour and real estate costs.
No doubt, cheap labor is a big advantage for India to win a big share of manufacturing industry. However, India also has to develop its infrastructure if they really want to be a major country in manufacturing industry.

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