India's exports are almost stagnant since last three years at $310-320 billion levels. The then opposition blamed the UPA government for this. Can the NDA govt. now significantly boost the exports in view of the fact that there is a fall in demand due to weak economies of USA and European countries and we cannot boost demand in these countries. Significant incentives already exist since last few years, to diversify into other markets like Latin America, Africa etc, but they are also not strong in demand. Any ideas?
Like it on Facebook, Tweet it or share this topic on other bookmarking websites.
The government is giving all incentives for export. These are entirely tax free. Duty drawback is also given as an incentives. If overall imports by certain countries are reduced, we can do nothing. But we need to see whether we compete well with other exporters. For example, India and China both export shoes. we should be able to compete.
G. K. Ajmani Tax consultant http://gkajmani-mystraythoughts.blogspot.com/
The comparative advantage of China is its abundant cheap labour employed in large volume capacity industries. They produce cheaply but in mega volumes ,earn low profits but make up in numbers. It is not going to be easy to beat the Chinese in manufacturing. Question is what out of box thinking can the new govt do to boost exports as they were very critical of the outgoing govt. New areas need to be explored. Any suggestions?
If a system is applicable to China, it should be applicable to India also. Because India too has got that population advantage. Regarding cheap labor, India too has that advantage. Only thing we need is a result oriented export plans.
There is no doubt about the importance of increasing exports on a substantial level as we are still net importers. The relevant question is how to go about achieving it. For the last couple of years we have seen how policy paralysis can severely impact our economic prospects. Let us how things shape up under the new government.
If a system is applicable to China, it should be applicable to India also. Because India too has got that population advantage. Regarding cheap labor, India too has that advantage. Only thing we need is a result oriented export plans.
Indian labour is also cheap but productivity is low because they are not provided with equivalent infrastructure. China has got perhaps today the cheapest but highly productive labour force which produces mind boggling outputs. They assemble more than 90% of the world's mobile sets for example. China has complimented its abundant cheap labour by allowing infusion of foreign capital in huge quantities. Together they have made China a manufacturing hub. One fear which the Chinese did not have was that FDI would wipe out local enterprises, for they just did not have them when they were truly Communist. Today they are not even pseudo Communists. India has to tread the invitation to FDI carefully so as not to hurt local industry. But the local industrialists do not think world scale andthus difficult to compete with cheap but quality Chinese products.
If a system is applicable to China, it should be applicable to India also. Because India too has got that population advantage. Regarding cheap labor, India too has that advantage. Only thing we need is a result oriented export plans.
Indian labour is also cheap but productivity is low because they are not provided with equivalent infrastructure. China has got perhaps today the cheapest but highly productive labour force which produces mind boggling outputs. They assemble more than 90% of the world's mobile sets for example. China has complimented its abundant cheap labour by allowing infusion of foreign capital in huge quantities. Together they have made China a manufacturing hub. One fear which the Chinese did not have was that FDI would wipe out local enterprises, for they just did not have them when they were truly Communist. Today they are not even pseudo Communists. India has to tread the invitation to FDI carefully so as not to hurt local industry. But the local industrialists do not think world scale andthus difficult to compete with cheap but quality Chinese products.
One cannot have the cake and eat it too. If you want to compete with China, provide what they were provided with. In the absence of this be satisfied with what you have. Wishful thinking will not yield results.
If a system is applicable to China, it should be applicable to India also. Because India too has got that population advantage. Regarding cheap labor, India too has that advantage. Only thing we need is a result oriented export plans.
Indian labour is also cheap but productivity is low because they are not provided with equivalent infrastructure. China has got perhaps today the cheapest but highly productive labour force which produces mind boggling outputs. They assemble more than 90% of the world's mobile sets for example. China has complimented its abundant cheap labour by allowing infusion of foreign capital in huge quantities. Together they have made China a manufacturing hub. One fear which the Chinese did not have was that FDI would wipe out local enterprises, for they just did not have them when they were truly Communist. Today they are not even pseudo Communists. India has to tread the invitation to FDI carefully so as not to hurt local industry. But the local industrialists do not think world scale andthus difficult to compete with cheap but quality Chinese products.
One cannot have the cake and eat it too. If you want to compete with China, provide what they were provided with. In the absence of this be satisfied with what you have. Wishful thinking will not yield results.
In that case India and Indians have to give up democracy and become a one party state and a regimented society like in China. Are we prepared - I think not at all. Less growth rate with freedom of our human rights is acceptable to high growth rate and no personal freedom.
If a system is applicable to China, it should be applicable to India also. Because India too has got that population advantage. Regarding cheap labor, India too has that advantage. Only thing we need is a result oriented export plans.
Indian labour is also cheap but productivity is low because they are not provided with equivalent infrastructure. China has got perhaps today the cheapest but highly productive labour force which produces mind boggling outputs. They assemble more than 90% of the world's mobile sets for example. China has complimented its abundant cheap labour by allowing infusion of foreign capital in huge quantities. Together they have made China a manufacturing hub. One fear which the Chinese did not have was that FDI would wipe out local enterprises, for they just did not have them when they were truly Communist. Today they are not even pseudo Communists. India has to tread the invitation to FDI carefully so as not to hurt local industry. But the local industrialists do not think world scale andthus difficult to compete with cheap but quality Chinese products.
One cannot have the cake and eat it too. If you want to compete with China, provide what they were provided with. In the absence of this be satisfied with what you have. Wishful thinking will not yield results.
In that case India and Indians have to give up democracy and become a one party state and a regimented society like in China. Are we prepared - I think not at all. Less growth rate with freedom of our human rights is acceptable to high growth rate and no personal freedom.
I want result oriented system be it democracy or otherwise. What the democracy has done to the nation?
If a system is applicable to China, it should be applicable to India also. Because India too has got that population advantage. Regarding cheap labor, India too has that advantage. Only thing we need is a result oriented export plans.
Indian labour is also cheap but productivity is low because they are not provided with equivalent infrastructure. China has got perhaps today the cheapest but highly productive labour force which produces mind boggling outputs. They assemble more than 90% of the world's mobile sets for example. China has complimented its abundant cheap labour by allowing infusion of foreign capital in huge quantities. Together they have made China a manufacturing hub. One fear which the Chinese did not have was that FDI would wipe out local enterprises, for they just did not have them when they were truly Communist. Today they are not even pseudo Communists. India has to tread the invitation to FDI carefully so as not to hurt local industry. But the local industrialists do not think world scale andthus difficult to compete with cheap but quality Chinese products.
One cannot have the cake and eat it too. If you want to compete with China, provide what they were provided with. In the absence of this be satisfied with what you have. Wishful thinking will not yield results.
In that case India and Indians have to give up democracy and become a one party state and a regimented society like in China. Are we prepared - I think not at all. Less growth rate with freedom of our human rights is acceptable to high growth rate and no personal freedom.
I want result oriented system be it democracy or otherwise. What the democracy has done to the nation?
If a system is applicable to China, it should be applicable to India also. Because India too has got that population advantage. Regarding cheap labor, India too has that advantage. Only thing we need is a result oriented export plans.
Indian labour is also cheap but productivity is low because they are not provided with equivalent infrastructure. China has got perhaps today the cheapest but highly productive labour force which produces mind boggling outputs. They assemble more than 90% of the world's mobile sets for example. China has complimented its abundant cheap labour by allowing infusion of foreign capital in huge quantities. Together they have made China a manufacturing hub. One fear which the Chinese did not have was that FDI would wipe out local enterprises, for they just did not have them when they were truly Communist. Today they are not even pseudo Communists. India has to tread the invitation to FDI carefully so as not to hurt local industry. But the local industrialists do not think world scale andthus difficult to compete with cheap but quality Chinese products.
One cannot have the cake and eat it too. If you want to compete with China, provide what they were provided with. In the absence of this be satisfied with what you have. Wishful thinking will not yield results.
In that case India and Indians have to give up democracy and become a one party state and a regimented society like in China. Are we prepared - I think not at all. Less growth rate with freedom of our human rights is acceptable to high growth rate and no personal freedom.
I want result oriented system be it democracy or otherwise. What the democracy has done to the nation?
Kept it united without force.
A unity with a plethora of diversities. This is not real unity .rather a pseudo unity.
