How to reduce dependence on Chinese products
There was a poll by the circle manager recently about why we buy Chinese goods. The main reason why we import a lot of things from China is that we do not have good equivalent India-made products. Unless we as a large nation, develop manufacturing capacity we can never become truly independent. Government should initiate a few steps in this direction before people can exercise the option not to buy Chinese goods. Based on my several decades of experience in large Industries, I am listing a few steps to help develop capacity for many commonly used products. I hope this post reaches those in government who are concerned about India's future who can initiate actions along these lines.
1. Identify specific products for fulfilling basic needs in all possible fields.
2. Commission design teams from government labs to design prototypes.
3. Successful public/professional private sector companies must be given the responsibility for prototype manufacturing, evaluation, improvement and mass manufacture preferably in greenfield factories.
4. Set up medium scale ancillary industries within manufacturing parks, which would be the key to providing jobs close to the manufacturing centre and arrange for supply of quality raw materials to these industries.
5. Identify banks for capital financing and working capital loans for the ancillaries. Provide mechanism for individual small investors to participate in specific medium scale industries as part owners (limited to 5%) who will participate financially without going through the highly volatile stock market and the speculation that goes with it.
6. Provide support for these medium scale industries in Incorporation, financial management, setting up production and quality systems, accounting practices, compliance machinery and standardised IT assets through qualified professionals and various institutes of management / engineering.
7. Ensure administrative support to ward of undesirables like self-styled labour leaders by banning union activities.
8. Set up a mechanism to ensure prompt payments for supplies made (because many medium industries die due to fund flow constraints caused by delay in payments for products supplied).
9. Set up these industrial/tech parks in less developed areas to provide employment for nearby communities while at the same time developing infrastructure to support them (skill training, power, roads, water, communication). This will have the benefit of reducing migration from rural areas to cities.
10. Prevent all political and official interference for private gains in the affairs of these medium scale industries including forced political donations.
Hope we act before things reach a dangerous downward spiral. more
1. Identify specific products for fulfilling basic needs in all possible fields.
2. Commission design teams from government labs to design prototypes.
3. Successful public/professional private sector companies must be given the responsibility for prototype manufacturing, evaluation, improvement and mass manufacture preferably in greenfield factories.
4. Set up medium scale ancillary industries within manufacturing parks, which would be the key to providing jobs close to the manufacturing centre and arrange for supply of quality raw materials to these industries.
5. Identify banks for capital financing and working capital loans for the ancillaries. Provide mechanism for individual small investors to participate in specific medium scale industries as part owners (limited to 5%) who will participate financially without going through the highly volatile stock market and the speculation that goes with it.
6. Provide support for these medium scale industries in Incorporation, financial management, setting up production and quality systems, accounting practices, compliance machinery and standardised IT assets through qualified professionals and various institutes of management / engineering.
7. Ensure administrative support to ward of undesirables like self-styled labour leaders by banning union activities.
8. Set up a mechanism to ensure prompt payments for supplies made (because many medium industries die due to fund flow constraints caused by delay in payments for products supplied).
9. Set up these industrial/tech parks in less developed areas to provide employment for nearby communities while at the same time developing infrastructure to support them (skill training, power, roads, water, communication). This will have the benefit of reducing migration from rural areas to cities.
10. Prevent all political and official interference for private gains in the affairs of these medium scale industries including forced political donations.
Hope we act before things reach a dangerous downward spiral. more
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Vengefulness is one aspect, but practicality also matters. When trading Chinese products provides employment and fulfils a need then the market may decide, as many consequences are left for future to decide. Even products made from kits being aplenty when Western countries decide assembling components in the Orient because of the favourable demographics and psychographics provided by China. Buying a product from America, like a laptop - Macbook Pro, an entirely American origin invention, too could be "Assembled in China". So what gives! more
Dec 08
@Satya Pal Ratti: Main export of India to China is Iron Ore (around 55%). Just like the British did, they import raw materials and export back finished products to us. Europe and USA offloaded all their manufacturing to China to reduce their pollution and also to use low cost labour. It has come back to bite them because that made their workforce largely redundant and their economies (particularly EU) are in a downward spiral. No wonder they want to bring back manufacturing but it is not going to be easy. But given their low population they can still survive. On the other hand, India's large and growing population requires more jobs and that can come only through manufacturing. White collar jobs, low-skill IT/ITES jobs and financial services centered around stock market (and now cryptos) gambling cannot bring prosperity to the general populace. Neither trading of goods by buying cheap from China and selling them here at an unconscionable profit. It is immaterial whether China is our enemy or not. We need to create jobs through Industry for our very survival. more
Dec 07
Let's be practical, folks! One can analyse and philosophise as much as one wants to. Reality is that if there's need for a plastic bucket in the house, no one is going to question the seller about "made in ......". But yes, over fifty years ago countries of the so-called "developed world" shifted most of their manufacturing into China because it was cheaper. Now, suddenly, there's antipathy towards China (for whatever reasons). The desired "shift" will not be able to tone down those fifty years into fifty weeks. We need to build up "alternatives". At the same time, it's not just India buying from China. China too buys our products. Would be accept China putting the shutters down on buying Indian goods all of a sudden? India also needs foreign exchange, as it is called. more
Dec 06
Main export of India to China is Iron Ore (around 55%). Just like the British did, they import raw materials and export back finished products to us.
Europe and USA offloaded all their manufacturing to China to reduce their pollution and also to use low cost labour. It has come back to bite them because that made their workforce largely redundant and their economies (particularly EU) are in a downward spiral. No wonder they want to bring back manufacturing but it is not going to be easy. But given their low population they can still survive.
On the other hand, India's large and growing population requires more jobs and that can come only through manufacturing. White collar jobs, low-skill IT/ITES jobs and financial services centered around stock market (and now cryptos) gambling cannot bring prosperity to the general populace. Neither trading of goods by buying cheap from China and selling them here at an unconscionable profit.
It is immaterial whether China is our enemy or not. We need to create jobs through Industry for our very survival. more
Europe and USA offloaded all their manufacturing to China to reduce their pollution and also to use low cost labour. It has come back to bite them because that made their workforce largely redundant and their economies (particularly EU) are in a downward spiral. No wonder they want to bring back manufacturing but it is not going to be easy. But given their low population they can still survive.
On the other hand, India's large and growing population requires more jobs and that can come only through manufacturing. White collar jobs, low-skill IT/ITES jobs and financial services centered around stock market (and now cryptos) gambling cannot bring prosperity to the general populace. Neither trading of goods by buying cheap from China and selling them here at an unconscionable profit.
It is immaterial whether China is our enemy or not. We need to create jobs through Industry for our very survival. more
Dec 07
We have a foreign goods syndrome which is very difficult for the general Public to avoid. Even the Government is not bothered but some remedial actions initiated. Every individual and Indian should avoid things from China. We can make it. more
Dec 01
