India has always maintained an ambitious attitude towards high-end manufacturing, hoping to attract more high-end manufacturing companies to set up production bases in the country. In order to achieve this goal, India has taken various measures to attract world-renowned companies such as Apple and Boeing to encourage them to set up factories in India. These companies believe that products produced in India can reduce the risk, and they see the huge market potential and low labor costs in India. However, these companies have encountered many problems after setting up factories in India, and although the Indian market has great potential, the manufacturing environment in India is not perfect. These problems are not only related to the identification of product quality and production lines, but also include the imperfect local management regulations and the lack of a mature industrial chain in India. This unexpectedly increases the cost of setting up a factory in India, contrary to India's promise of low labor costs and the vision of a global manufacturing hub. Therefore, it can be said that the shortcomings of India's manufacturing industry are gradually being exposed, and India's manufacturing ambitions are facing challenges.
1. Product quality problems
Taking Apple mobile phones as an example, half of the mobile phones produced at the Tamil Nadu factory in India were identified as non-conforming. This shows that India has problems in product quality control and cannot meet Apple's requirements. Not only that, but every problem on the production line requires Apple to spend more time to solve, resulting in an increase in product costs. This goes far beyond the benefits of low labor costs that India claims to have.
2. The management regulations are not perfect
In the process of cooperating with India, some companies have found that India's regulations are not perfect, and implementation has been delayed. This has brought various inconveniences to the production and operation of enterprises, and also limited the space for their development.
3. The industrial chain is not perfect
In the past, there were almost no local companies involved in the upstream of the industrial chain, and they needed to build a cluster industrial chain of high-end manufacturing from scratch. Due to the imperfection of the industrial chain, many parts still need to rely on imports, which increases costs. At the same time, India also needs to increase its own scientific and technological innovation capabilities in order to form competitiveness in high-end manufacturing.
The shortcomings of India's manufacturing industry have been exposed, making the trend of high-end manufacturing returning to other countries gradually emerging. More and more companies are choosing to relocate some of their production capacity to countries like Vietnam, Thailand and India. Although we cannot stop the relocation of companies, they will still return to the Chinese market as the advantages of Chinese manufacturing become more and more prominent. Compared with Vietnam and other countries, China has great advantages in terms of market size, industrial support and human capital. At the same time, the intensity of cooperation between China and the United States is increasing, and some companies are more inclined to return to the Chinese market after comprehensive consideration. Therefore, as markets such as India expose their shortcomings, we see this as an opportunity for Chinese capital to repatriate. The return of high-end manufacturing will be conducive to the development of China's comprehensive environment and improve China's position in international competition.
India's efforts and ambitions in developing its manufacturing industry are undeniable, however, the issue of its manufacturing environment cannot be ignored either. Despite India's huge labor and consumer demand, India's manufacturing industry is still in its infancy, with an imperfect industrial chain and many parts and components that rely on imports, which leads to rising costs and loses its original low cost advantage. In contrast, China's manufacturing industry has formed a relatively complete industrial chain and independent innovation capabilities, and has obvious advantages in market scale and ** chain. Therefore, I believe that China's manufacturing industry will continue to maintain its leading position in the competition.
From this perspective, India's manufacturing woes provide a rare opportunity for China to attract capital repatriation and the return of high-end manufacturing. I believe that China needs to continue to work hard in increasing scientific and technological innovation and upgrading the industrial chain to further consolidate its competitive advantage. At the same time, I also hope that India can solve its own problems in the development of the manufacturing industry and achieve sustainable economic development.