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  • Category: Miscellaneous

    What is the logic behind shifting business from China to India?


    What are the possible reasons for some countries suddenly deciding to set up their business in India and not in China as earlier planned? Join in this interesting discussion to know the possible logic behind the reason for shifting business units and services from China to Indian shores.



    Indian newspapers are reporting that some nations are thinking about shifting their business from China to India but if we observe carefully which is the most affected nation out of these two of this pandemic? By seeing the statistics we can know that India is the most affected nation of the two. So why is it that some countries are shifting their manufacturing business from China to India? Perhaps they want to take the rivalry or grudge against China, but India is also not wholly safe for shifting their manufacturing units. What is the logic behind it?
  • #697062
    If any one goes through the pandemic course of action which our country went through, there are always appreciation and applauds. Even today given the huge population of our country, positive patients were very less and what was expected was very very high, and even the deaths occurred are also very very low. In fact there was no positive cases in many districts across the country and the lock down pan India was imposed as the precaution measure but not affected. Therefore the companies need not fear about the virus and its after effects. Whereas the real figure of positive cases and deaths were fudged by China and that irked many countries including US and we are very transparent in revealing the real happening. So India is more secure and better placed than other countries in the world to chose next business hub for any country.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #697063
    The Indian labour is less costly and there are many youths who can take up the job and perform better. Many nations are believing that China has created this Corona Virus problem by doing trails for creating a bio war. The same is expressed by the USA president also. Many of the countries want to stop their dealings with China. Then the question comes who is the alternative. Many developed countries never believe in producing certain items in their countries keeping the pollution problem. Presently many of such products are being supplied by China. But now if India can manufacture those products the world may purchase from India. They also think of coming here and start manufacturing here and exporting to their country. That way your manufacturing sector will get a boost, more jobs will be created and more people will bet employment. We will earn a huge foreign exchange by exporting them to other countries.
    drrao
    always confident

  • #697066
    What is my question and what is your answer? The question is the most affected Coronavirus out of these two countries is India. How did these nation manufacturing units think (who wants shifting the business) are safe in India? By the way, the Indian inexperience manufactures cannot compete with China at all.
    Probability a theory based on Assumptions and Negativity(Elimination). It is used in the evolution of atomic theory.--- Bhushan

  • #697077
    Most of the people are talking and hoping that the countries which are not happy with China, due to whatever reasons, would shift their factories to India. What is the exact logic behind that is not known but when anyway they want to pull out from China then India might look to them as alternate choice.
    Thoughts exchanged is knowledge gained.

  • #697083
    Whether the shifting of manufacturing units from China to India happens or not we don't know. But the thought of shifting is arising because of disbelief and non-transparency, the world nations are thinking about China. They are not thinking about who is more affected by the Coronavirus because almost every country is affected by it. Experience comes over a period of time. Initially China might have faced the same problem when the shifting happened to China from the Western world.

    By the way the thought of shifting manufacturing units did not come now. It came long back when India had far less cases when compared to China. But the thought of raising this thread came only after Indian Covid-19 cases crossed the so called China cases.

  • #697084
    I understood your question. The situation of shifting focus from China to India will be after the Corona Virus 19 pandemic. The whole world is thinking that this situation is created by China and they have no more confidence in China. The shifting is not thought keeping the deaths happened in the country but the way in which they acted to control the issue. The whole world also knows that China has not declared its actual numbers and hidden many. But they know that India has come out with correct figures, which gave them more confidence in the country.
    Anyhow all these are theories and beliefs. But what exactly will happen is not known to us. We may have to wait and see what will happen.

    drrao
    always confident

  • #697085
    #697083 As this question arises now itself. Now also Indian media and Indian prime minister, other ministers are talking about shifting the business from China to India. First of all, India should stop the spread of Coronavirus without doing that they are talking free land and other aspects? Do you think is it not make satisfying the Indian public with these statements?
    Probability a theory based on Assumptions and Negativity(Elimination). It is used in the evolution of atomic theory.--- Bhushan

  • #697087
    There is nothing wrong while trying to control Coronavirus on one side and grabbing an opportunity on the other side. There is no hard and fast rule that we have to do this first then only do that.

  • #697091
    #697087 Our priority should be given to stop the virus, people deaths, and starvation in this situation without doing that telling Kakambul stories and spicy news will not feed for the Poor or any others.
    Probability a theory based on Assumptions and Negativity(Elimination). It is used in the evolution of atomic theory.--- Bhushan

  • #697095
    The multinational big business and manufacturing giants started operating in China as they found a place to invest money and get good gains from them. China has cheap labour and an authoritarian regime. In order to attract ofreign capital they made many infrastructural facilities. As there were no employee dissensions, etc.and the labour was cheap the foreign investors and manufacturers started earning lot. Thus 'made in China' goods permeated to all nooks and corners.

    Slowly China's hidden agenda started becoming visible to the foreign investors and multi-national corporates. China started putting blocks and controls on anything coming from other countries, but they flooded other countries with China-made goods. They did not allow Google, Amazone Facebook, Whats app etc. Thus business became one sided.
    Slowly China started procuring equity of the foregn multinational companies and started becoming the dominat controlling stakes holder.

    This play became more evident duringthe Corona crisis. Suddenly Western nations felt cheated and taken for a ride. They felt that China is posing a risk to their economy and sustenance.Then they thought of alternatives. Naturally India is the next choice in terms of logistics for change and shift.

    Even India felt China's hegemonic tendencies of controling economy. Many big business names in India too were bought by China's business houses. But India initiated some mitigating measures.

    India being a large market, a functional democracy and a peace loving nation and trusted nation the big business may be slowly establishing in India either by shifting from China or by starting new here.

  • #697102
    If India has real worth first they need to stop the spreading of viruses and make everything functional in this country. Without doing this beating our own drum like the second choice is India after China. Telling or repeating this thousand times or lakh times will not yield any fruitful results. On the one hand, we are telling that we have to live with the virus and not able to stop the virus or unable to invent a vaccine, on the other hand, we are telling that the second alternative choice to China. Is there any logic behind it?. People are suffering and dying with this pandemic situation without bothering that some intellectuals are worrying about shifting the Manufacture units from China to India.
    Probability a theory based on Assumptions and Negativity(Elimination). It is used in the evolution of atomic theory.--- Bhushan

  • #697104
    Even the Lockdown is taken a leaf out of China's book. if this situation starts in India we are in a blank situation. China will be "the world factory" with its low production costs, huge labor pool, vast talent base, and business ecosystem.
    Probability a theory based on Assumptions and Negativity(Elimination). It is used in the evolution of atomic theory.--- Bhushan

  • #697106
    China has many strengths under its sleeves and there is no doubt or confusion on that. They are technologically also very much advanced. Their policy of expansion is also helping them in enhancing the military power and collection of deadly arsenals. They want to be numero uno in the world in many aspects. Unfortunately the leakage of the virus from the Chinese laboratory has put questions on the integrity of China and many countries now want to teach it a lesson in some way and the simplest of them is to shift their industrial activities from the low labour cost China to other low labour countries like India, Bangla Desh, Nepal etc. Out of these options, India deserves a better chance. How far this is going to happen that only the coming times would be able to depict but the fact of the matter is that India has to come up to those standards of quality and discipline which these industries expect and Govt should not advertise these things in a louder voice and first ascertain that our grassroot facilities and manpower are up to that standard of workmanship.
    Knowledge is power.

  • #697142
    #697106 Unfortunately the leakage of the virus from the Chinese laboratory has put questions on the integrity of China is a wrong statement.

    Even the American Secret agencies or US Intelligence Agencies told that the creation of Coronavirus is not a Human-made or genetically modified and it is not leaked from Chinese Laboratory refer to the Indian papers you might miss that news. For sometime say your argument is correct "Why the Neigboring country Vietnam not affected by this Coronavirus? ".

    Probability a theory based on Assumptions and Negativity(Elimination). It is used in the evolution of atomic theory.--- Bhushan

  • #697163
    We need to understand that it is not only about shifting business but of trust and long term relationship. We only got it highlighted about the shifts in business location in the recent times but talks were going on from more than a year. When we compare the two nation, we know that China do have a upper hand in terms of technology, labor and cost of production which they have really used it well to top the international market. It is well known to the world that China can produce anything at a cheaper rate than any other country in the world due to their technology and work force but what about trust and mutual understanding between nation. India has being able to improve the internations relationship and links worldwide and has created a space for India in the international market. India is also one of the largetst consumer in the world as we have more poppulation. If India is able to provide better working environment, land, work-force and help use of technology, India too stand a chance to give a tough fight to the top gaint China. Internation market is not loking only Corona as a factor but other hidden agendas that we miss or is kept below the liones from people. Hope it helps India and its common people in the long runs.
    “The most important thing in life is to learn how to give out love, and to let it come in." — Morrie Schwartz

  • #697245
    #697163 India has so many issues with neighboring countries Now Nepal joins in the club the prime minister of Nepal announced in parliament that India has only spread the virus in Nepal.
    Probability a theory based on Assumptions and Negativity(Elimination). It is used in the evolution of atomic theory.--- Bhushan

  • #697246
    Now China is creating border problem for India and Nepal has also joined the race to claim some land which they cannot prove or substantiate. And the US is very angry with China for its disturbing behavior with India and thus we have a very good friend in US which is guarding us from far during the overtures of China and other enemies bordering India. All these things are once again proving that India is far better choice for many manufacturers to shift and the Modi government would create all the best possible facilities for the smooth transition of manufacturing facilities from China to India
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #697253
    #697246 There is no China hand in this. If China PM provokes will Nepal PM act according to China? India wants to construct a road for Lipulekh Nepalese to believe that it is their land so there begins the clash between India and Nepal. Nepal is a pure Hindu country and it is also revolting against India.
    Probability a theory based on Assumptions and Negativity(Elimination). It is used in the evolution of atomic theory.--- Bhushan

  • #697293
    Bhushan,
    In a lighter vein, what is Kakambul stories in your response #697091? I have seen you using the same phrase in other threads also. Is it a combination of "Kakamma Kathalu" in Telugu and "Cock-and-Bull Stories" in English?

  • #697310
    Yes, Bhuvan I know you are Telugu person that is why I used that phrase.
    Probability a theory based on Assumptions and Negativity(Elimination). It is used in the evolution of atomic theory.--- Bhushan

  • #697338
    The ideas of setting up an industry in India is that we have built good social contacts between nations. The cost of overhead expenses is less when compared to other countries for the industries choose. The human resources is cost effective. The raw materials can be organised in plenty. Good will is built over a period of time by India which provides a shelter to new industries.
    Lead the leader

  • #697340

    #697142
    Bhushan:
    The leakage theory whether it was intentional or accidental is not proved so far so we cannot rely on that but many countries are having some grudge against China on this account. On the virus front the whole world is against China except a few to whom it is giving loans and other industrial support. It is not easy to start a war with other country on every matter but many of the world countries would be happy if the manufacturing facilities of multinational companies are shifted from there to elsewhere. When it comes to find out what are those elsewhere places then of course we cannot say that it would be India but a few of them might land here especially those whose owners have a long time experience of working in India. So, let us see how the things move but you are absolutely right that these things would be beneficial only in the aftermath of the virus threat and till that time our priority is already very clear and that is to fight and contain the threat looming on our heads at present.


    Knowledge is power.

  • #697371
    As there is a renowned Telugu poet Gurrajada Apparao says "Desamante mati kadhoye Desamante Manushuloya" meaning of this Country means not the soil or land country means the People.So first prioritize the people safety later we see on underthings.
    Probability a theory based on Assumptions and Negativity(Elimination). It is used in the evolution of atomic theory.--- Bhushan


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