Question

china redused its cost of prodution due to low wages can this types of revolution happen in india

Answer 1

Yes, the kind of revolution that China achieved due to low wages can also happen in India. However, for that to happen, India needs to develop more manufacturing industries. Manufacturing industries can then provide employment to even semi-educated workers whose productivity can then increase significantly.

For manufacturing to increase, the government needs to make it easier to start industries. Right now, the process of starting an industry in India is slow compared to China. This is due to various regulations and a slow and unresponsive bureaucracy. If India can remove these hurdles, then it can also take advantage of its low wages and unleash an economic revolution like China.

Answer 2

The competitive pressure on China's manufacturing sector from India is perhaps much bigger than China imagined. China's actual salary has grown 10.6 percent since 2008, while India has seen a salary growth of just 0.2 percent during the same period, the Times of India reported recently, citing a report from the Hay Group.

The report comes after the news that some Chinese smartphone vendors, Huawei Technologies Co included, would soon start manufacturing handsets in the South Asian country and as India's low labor cost advantage forces China to make more efforts to maintain its competitive edge in the global manufacturing landscape.


Hope it will help you