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Sunil Kilaru – How India can get cash in on with its mutual cooperation with Chinese manufacturers?

India must look forward to the fact that it won’t be that simple to oust a worldwide financial superpower like China from the economical map. Despite the fact that India conveys its very own rundown of disadvantages, it got an added advantage due to its cheap labor costs. This is where India and china both needs to come up as a mutual partner in the global electronics market in the coming future.

We can co-relate the emergence of the Samsung factory in the Indian electronics market with the same case scenario of Suzuki into the automobile Industry in the early 90s.It was only after the introduction of Suzuki along with the associated modern technology it brought alongside to give a boost to the overall automobile industry.

If we put a look through to India’s labor cost in 2015, it descended as $1.72/hour in contrast with $37.96/hour for US while still having it double in comparison to china. Then government has presented certain manufacturing programs so as to shift the manufacturing of electronics from semi-knocked down (SKD) to complete knocked down (CKD) units. This, thus, would energize the import of semi-assembled parts and offer better opportunities of employment to the nearby individuals in the meantime. Still it very well may be cited that moving the SKD to CKD alone would not help alone for the bigger cause. Manufacturing industry in India should be encouraged and this ought to be done while keeping all the worldwide markets in mind. All the big manufacturing giants along with the related government authorities must look into the same while adding some extra incentives for the exported goods market. Once more, this would prompt a steadier environment for the worldwide organizations and pull in more FDI into the nation from global electronics manufacturers while bringing better employment opportunities for the masses around.
If we look at the overall cost of the road transportation in India, 1tonne of freight over 1km cost about Rs.2.28 and same goes to Rs 1.41by rail and Rs 1.19 for waterways.
This is where India comes with a better geographical location while having a good number of commercial ports around and as we understand that water transportation comes at a batter cost, India can surely capitalize on the same in the times to come.

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