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Should India adopt Growth Model of China

Karan Madan Click to edit Master subtitle style

5/5/12

About China (Reasons for Success)

Labour Cost Advantage. Vertically Integrated Domestic Suppliers or their own suppliers. Access to Raw Material. Talent and Experience of Chinese Contractors.
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Rise of Chinese Multinationals

Shanghai Zhenhua Heavy Industry World largest manufacture of heavy machinery Three Gorges Dam World Largest Hydro Shanghai Electric Group 3rd Electric Equip Chint Group Largest Low voltage Transmission and distribution (1st) And like wise many more 35 companies compared to 19 companies of India

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Europe To Develop Infrastructure

Money, Labour, Expertise

Indonesia To develop Infrastructure

Import Raw Material, Remit Money

Sell & Export


World Manufacturing Hub

Africa, Afghanistan and Parts of Middle East To develop Infrastructure (90%) 5/5/12

Money, Labour, Expertise

Australia To Develop Infrastructure

China Now Inventing

In 2009, about 300,000 applications for utility patents were filed in China, roughly equal to its total of invention patents, which have been growing slightly faster than utility filings in recent years.

But even if just half of Chinas total filings in 2015 are for invention patents, the national plan calls for a huge leap, to one million, by 2015. 5/5/12

Manufacturing Comparison
Manufacturing In India India Due to China rapid Is penetration into plagued by; Industrial Laws Draconian Manufacturing Inefficient market. Infrastructure Facilities. Backed by Capital Land Acquisition intensive & High Problems Technology Regulatory Hurdles Industries.

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Can We EVEN Grow Like China

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Real Reasons For Growth

Most important, while capital investment is crucial to growth, it becomes even more potent when accompanied by market-oriented reforms that introduce profit incentives to rural enterprises and small private businesses.

By encouraging the growth of rural enterprises and not focusing exclusively on the urban industrial sector, China has successfully moved millions of workers off farms and into factories without creating an urban crisis. 5/5/12 (Underemployed in Agriculture)

Replication Beginning

Indian government is mulling creation of manufacturing hubs, in line with the model adopted by China to boost its manufacturing sector, by fast tracking the National Manufacturing and Investment Zones (NMIZs). Tax incentives, Single-window policy and Flexible labor laws. clearance

These NMIZs are envisaged as bigger than SEZs, covering states and even groups of 5/5/12

Flaws in Strategies

Corrupt Political India: Can Afford Aging Population. China:Cannot Afford Scenario Birth Control Reduce Labour Excessive Population. Hording Money (Not Secure) Lower Level of Literacy and Democracy poor R & D levels. Rebellion among Population

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India Vs World

The Competition is not with china, but with the Global Challengers.

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