The resounding failure that is Indian policy
Consider the following points gathered from various sources:
- No country has scaled economic heights without a robust manufacturing base.
- Power deficit: Modern factories run mainly on electricity and China has a robust power grid as compared to India’s blackout-plagued grid.
- Land deficit: Land acquisition is a major pain in India but a breeze in China. This gives scale to manufacturers, and enables cluster industrial development.
- Labour deficit: The average chinese labourer’s wages are 4 times that of the average Indian. Still, theChinese have a cost advantage due to higher productivity due to better power supply, lesser power cost, better machinery due to better funds availability, bigger scale due to better land acquisition, a cluster development model for industries (all allied industries in the same area).
- Automation deficit: Chinese are now the biggest consumers and soon to be producers of industrial robots, to replace their ageing workforce. They will just not let down on their productivity.
- Tech deficit: India is still reliant on foreign technology and weapons for defence, losing billions in forex every year.
This all translates to a policy deficit. The Indian laws, rules, regulations, the legal system, the bureaucracy — all have conspired to damn India to economic hell.
If India boycotts Chinese goods, China will lose only 2.2% of its exports, which it can transfer to other markets through the OBOR. But if China boycotts Indian materials (which are basically raw materials), India will lose 5% of its exports!
And now the spectre of war with China!!
Being an Indian has never caused me so much worry.
But one does not abandon one’s mother simply because she’s old or decrepit. One rejuvenates her.
Let’s see what one can do to make India great again. Vande mataram.