India as a Newly Industrialized EconomyWhy do you think India has been successful as an NIE?
& What do you think the future of the electronics industry will be like for India?
Write your comments and post a comment on any ONE of your friend's response.
Labels: A Study of a Newly Industrialized Economy
30 Comments:
India has been successful as an NIE because it has a government which provides incentives and tax rebates to foreigners who invest and build their company in india.
The future of the electronics industry in india will be good but not that good because it will lose out to china in the coming years as the leader in the electronics industry.But india will at least have a significant share of the electronics manufacturing sector with more businesses investing in locally-based global and indian manufacturing companies.
Therefore, in the coming decade, the world's economy will be dominated by both china and india, rather than the USA.
Hi Douglas
i agree with you about India's future, esp with the rise of China.
Good thoughts :)
Sorry douglas but i disagree with what u posted as I feel that india is a more succesful NIE than china and will be the leader in the electronic instead of china .China may be a good place to set up a electronic company rather than india due to the cheaper labor (with considerable experience) than india but however India proves to be a better place of investment .Both countries are on par in terms of natural resources availability but in terms of transport india proves to be making more progress than china .The living conditions of china is much worst than India due to the custom of china . China also experience most of the world greatest natural disater that post a threat to the companies that are station there which means that when a natural disaster occurs the companies have to shut off the business for that day which results in the lost of millions which contributes to the revenue China earns . India on the other hand experience very few natural disaster and this disaster do not mainly occur anywhere near the industries . Hence i feel that india will be the leader in the electronic industry in future
NIEs are countries whose economies have not yet reached First World status but have outpaced their developing counterparts.
India is successful as an NIE because it had successfully attracted many investments from all around the world, boosting its own economy, thus raising the people's standard of living. Also, industries account for 28.2% of the GDP of India. However, despite capitalizing on its large numbers of well-educated people skilled in English language to become a major exporter of software services and workers, more than half of the population still depends on agriculture for their livelihood.
The future of electronics industry looks bright. Many jobs will be created and huge amount of profits is to be earned for India. However, there is a clear imbalance between the demand and supply of IT professionals. There are too many uneducated people in India for India to cope with the demands of the electronics products required.
I do not agree with douglas's comment. China may be a good place to set up companies, but its citizens are too uneducated to be employed and the level of poverty in China is too high. India's people are more educated and are well-spoken in English as compared to China. Moreover, more people in India will buy the products as they are richer. Thus, more TNCs will set up their companies in India rather than China.
India has been successful as a NIE due to many factors.Firstly the government have been encouraging investors from overseas to come over to India and set up factories here particularly in the field of electronics by offering incentives and tax rebate. Also the work force here is well educated and alot cheaper compared to hiring workers with the same qualification from other countries. Also this skilled workers are able to effectively converse in English and many Transnational Corparations are located in english speaking countries.
With the rapid growth of the electronic industry in India, India and China are both leading NIEs and are bound to overtake USA in the years to come as the worlds richest country.
I disagree with what douglas say as i personally believe that India will be a more successful NIE compared to China. While China have a bigger population compared to India. Its workforce is not as educated as the workers in India. Many workers in China come from villages and have no education. Also the workers in China are mostly unable to communicate well in fluent english.
Therefore i feel that India will be a better NIE compared to China
India has been successful as an NIE due to many reasons; these reasons include the Government's support, Land and The availability of Cheap and Skilled labour. India, whom provides Land, Skilled labour, Government Incentives and Tax Rebates are able to attract TNCs compared to many other countries in the region. Investments from TNCs would boost the economy of India, Resulting in a rise in the Standard of living of the people.
The Future of the Electronics Industry is expected to grow to even greater heights even tough India faces a few challenges like competition from other countries (especially China)
I would disagree with Douglas’s comment on how China would win against India. Indeed, China would stand out in terms of the amount of labour available. However, India would be much stronger in terms of the Literacy level of the labour and Transport. However, India also faces a challenge whereby they lack a significant amount of IT Professionals. I would agree with Douglas that the world's economy would soon be dominated by China and India.
I think India's way of attracting TNCs is wonderful. Firstly, TNCs are the ones who boost the name of India as an NIE. With all the land set aside for IT developments, skilled labour at low cost, government's policy and improved market accessibilty(cultural, transportation, etc.),foreign investors flock into the country and boost the economy greatly.
India will definately excel in its electronics economy and with all this TNCs, India may even become the IT hub of the world. However, there are competitions from other countries for example China who offers much the same of even better conditions for foreign investors and TNCs. Therefore, the Indian economy may decline but not to a huge extend as China too has its flaws for instance, protectionism which discourages foreign investors and TNCs from setting up business in the country.
I totally agree with Nick's idea of India winning China. China has labour, so what? Their labour are very much less educated that those in India. Therefore, the productivity will be lesser than India. Therefore, China lose out in this case. Douglas' prediction of the both countries dominating the world's economy is really true and we can even see the effects at this instance.
Chao Xiang
I think India has been successful as an NIE because it is a global manufacturing hub, with the largest number of companies shifting their manufacturing base there. Moreover, India's government has issued the new Consolidated Foreign Direct Investment (FDI) policy document, which would be setting up National Manufacturing and Investment Zones (NMIZs). These NMIZs aim to increase the sectoral share of manufacturing in GDP to 22 percent in 2022 and to double the current employment in the sector.
I think India would be made a country hub for both domestic and international markets. Consequently, India's economy would boost. When India becomes wealthier, the government would be able to improve the welfare and standard of living for the Indians.
I agree with Zhe Xian's comment on the quality of China's workforce. With an uneducated workforce, it'll slow down the efficiency. This would reduce the profit as well as the quality of the product. To sum up, i feel that India would be a better workforce than China in due time.
India will definitly be sucessful as a NIE but it will depend on the goverment. If the goverment is stable and they welcome foreign investments and offer incentives like they do so now and do so in many years to come, success will follow. However, even after saying that, India will always be behind China in terms of rate of growth or number of shares in the electronic industry as China started developing its economy earlier than India thus having a edge over them. Furthermore, China has a bigger market than india for investors to tap on. i agree with douglas with the world economy dominated by China and India but disagree with henson perception. YEs, China do experience one of the worst natural disater in the world but they came back strong after that, they learn. However india does not have much natural disater hitting them so if one fine day a earthquake hit them, they do not know how to react and their economy might just fall. i disagree with kai shen as so what if India has more people knowing english? English became the international laguage because of USA being the superpower of our mordern day world. If China has the potential, investors would invest regarless of that and who knows, one day our international language might be mandarin.
Cavier
This comment has been removed by the author.
This comment has been removed by the author.
I believe that India will be the IT hub of the world due to the present of lands and skilled labour in India. These factors are already enough to make India prosper. The result could be seen from the survey taken in 2006 which shows that India has rose to Asia's fourth largest economy by 2006.
I agree with many saying that people in India which has a higher education than people in China will definitely help in the productivity in India.
However, I does not agree with Henson saying that the conditions in China will affect the companies that are stationed in China. China is a big country and not most of the places/cities in China will be affected by the natural disaster. Therefore, I believe that foreign investors will not station their companies in the areas where disasters are likely to occur.
Kai Xin
India has been successful as an NIE as it had attracted a lot of foreign investors. Big names in the markets have come and set up companies in India. Enough land for foreign investors, skilled labour at low cost, government's policy and market accessibility is an advantage for India and had attracted a lot of TNCs. This will definitely boost the economy of India.
India will stand out as an IT/electronic hub of the world in the future. Competition would be face in this path, China, the largest competitors of India has provided others with the same conditions for foreign investors or even better and have been said that they are dominance and are superior to India in this area. I do not agreed with that, as people in China are not as educated as the people in India. I agreed with Nick that India would win China. I also agreed to what Chaoxiang had said, China will lose out to India for the amount of productivity. Thus, I can conclude that India electronics industry will be prosperous in the future.
India has been enjoying a fast industrial growth, a successful NIE having accelerated economy growth.
According to statistics, the electronics industry for India currently is worth US$32 billion and may reach US$150 billion in 2010. The Indian market for electronic products is over US$25Billion alone.
In the near future, India would reap the benefits of developments and expansion of the India market, possibly becoming a manufacturing hub for global markets.
Though India is a small player in the global electronics hardware industry, with only ~US$12 Billion over the global industry size of over US$1.3 trillion, with the rest accounted for by Chinese EMS companies and State Owned Enterprises, many believes that India could possibly overtake China in lead for electronics industry.
However, India's economy is still behind that of China's. For the past 2 decades, China has been growing at an astounding 9.5% a year, and India by 6%. China stays dominant in mass manufacturing, and is one of the few nations building mulit-biliion-dollar electronics and heavy industrial plants. India, on the other hand is a rising power in software, design, services and precision industry. This could raise a provocative question: What if the two nations merge into one giant "Chindia"? Of course, it would be made impossible due to rival political and economic ambitions, but if they do, they could take over the world technology industry. But true enough, India has the potential to take over China, but not in the near future.
Though I would agree with Douglas that both India and China will be dominant in electronics and industry market, it would be too early to say that India and China will dominate the whole of the world's economy.
I feel that India would be successful as an NIE as it has almost all the factors that attracts transnational corporations to set up their manufacturing plants there such as cheap cost of labour, tansportation infrastructures and also the knowledge of the people in IT products.
In the long term, India should witness growth in the demand of manufacturing and they would have to develop new skills in order to keep up with the trend of technology.
Compared to China, India would still lose out as an NIE as China also has all the attracting factor and also at a higer degree. However, China's workforce still lose out to india in terms of education but this would not affect China too greatly as China students are now studying overseas to attain degrees that are much more acknowledged such as degrees in Nanyang Technological University, Singapore and eventually returning back to China to work in a btetter-paid postion such as managers.
I do agree with eustacia's opinions that India would have a higer standard of living as the manufacturing plants would generate more GDP and earnings form exports which would increase the real per capita income in India
Kah Keng
This comment has been removed by the author.
India has been able to achieve higher growth in the manufacturing sector due to three main factors. These factors are abundant availability of manpower and the
support from government.
Most of the workers in India are equipped with the IT communications skills which are largely required in the manufacturing sector. As the government of India has been constantly improving its industries, it had led to rapid growth in India's economy. With an improvement in the industries, foreign investors would be attracted to invest and set up businesses in India, contributing to the growth of India's economy.
I disagree with the opinion that Henson had commented. China does experience natural disaster. But India have also been affected by tsunami in the year 2004. In addition, Japan often experiences earthquake but their economy is the third largest in the world. Experiencing frequent natural disaster does not necessary meant that businesses in the manufacturing sector will not flourish.
I agree with Zhexian's views on China workers being lowly-educated and thus will lose out. But do not patronize the lowly-educated workers of China as they are picking up English lesson recently. India may have the talent but their economy status is not as strong as China's. If India become complacent as they think that India's workers are way better than China, it would not be surprising if China surpass India someday.
Sarah Huang
India is successful as an NIE because it attracted a large number of investors to set up factories there. This boost India's economy and raises the people's standards of living. Some of the factors that led to India becoming successful as an NIE is due to the skilled labour and support from government.
I agree with Douglas about the future of the electronics industry of India. Kaishen mentioned that India's people are more educated and speak better English than the China people. However, recently, people in China are learning and picking up English. With the people ready to learn, China might not lose out to India. Though India will not overtake China in the coming years as the leader of the manufacturing sector, it will at least have a significant share of the electronics manufacturing sector with more businesses investing in locally-based global and Indian manufacturing companies.
In conclusion, I predict that the world's economy will be dominated by China and India.
India has been successful as an NIE due to the following reasons; these reasons include the Government's support, avaliable Land and Cheap and Skilled labour. India provides Land, Skilled labour, Government Incentives and Tax Rebates to attract TNCs to developed in India and it is alot cheaper than other countries due to the avaliabilty of land which is much more than countries like Singapore. Investments from TNCs would boost the economy of India, resulting in a rise in the Standard of living of the people and also the increase of per capita income.
The Future of the Electronics Industry is expected to grow faster India faces competitive with China which is developing faster than India and also other challenges.
I do agree with Kah Keng's opinion that China still lose out as an NIE compared to China. However, i think that in terms of education, India will not lose out to China even though China are now studying overseas to attain degrees but in India, people are more skillful and the cheaper labour compared to China will decrease the overall production cost and attract more TNCs to develop in India and improves its economy.
Jun Kai
Its true that india experience fewer disaster than china however as learn in chapter five of last year , there is technology available that can minimise the effects of earthquake which the industrial buildings india have inplanted in the buildings themselves . India also faced the fact that its economy was disrupted in the 2004 Tsunami but it doesnt mean that the tsunami will occur ever year . Also India has also equip with itself the technology of tsunami warning systems which means that the damage will be minimised and not that badly affected . India has also placed more money as report in its disaster funds in case that a Tsunami or other natural disaster should occur again .only New Industrial buildings in china has being equip with the earthquake technology . Its true that with the new plans that china is going to implemented to boost its economy may help but India who is china main competitor is not going to sit around and do nothing . India may have started picking up english earlier than china but it doesnt mean that india is going to stop just after learning english . The people in india are also picking up other languages which china on the other hand is currently only picking up english .
India, as a NIE, has enjoyed successful progress compared to their developing counterparts.
India being the eleventh largest economy by nominal GDP and having the forth largest purchasing power parity will only stand to move up the charts of the world's biggest economy. In year 2001, according to World Development Indicators,India's GDP was only $477.4 billion. Today, in year 2011, India's GDP is $1.3 trillion. These astonishing growth are probably due to some key factors. For example, India's young and rapidly growing working age population, growth of manufacturing sector due to strong engineering skills, rising levels of education and sustained growth of consumer market due to rapidly growing middle class population.
However, these are only statistics. There are many evidences to prove that India is prospering. Such as American companies setting up their headquarters or branch in India. This in turn boosts India's economy by providing jobs for the locals.
I agree with Kai Shen's comment, such that China's citizens are less educated when compared to citizens of India. In addition, Bangalore, a state in India, is known as Silicon Valley of India because of its position as the nation's leading IT exporter. Therefore, investors would first look towards India as a place to run their business or simply, invest in.
As mentioned, investors would sure to be keened to invest in the fastest growing major metropolis in India as it looks to be the one filled with the most potential in reaping profits. With such money invested, India would stand a chance to further develop in other aspects such as building on their culture or strengthening their military. And, who knows, India may edge out USA in the charts of GDP. The future is bright for India.
India has been successful as an NIE as India has factors that attract transnational corporations such as Skilled and cheap labour, efficient transport and the land available. with these factors, it has attracted big companies such as Microsoft.
I believe that India will be an IT hub in the future and attracts more big investors to come.
I agree with Jun Kai that India will be facing competitive with China because China is also developing and faster than India
Chun Yee
India has been successful as a NIE as it has managed to attract many big companies to set up their headquaters in India. Even most of the big companies like HP and Motorola have already had their names in India. This shows how capable India is.
India have attractive factors like land, skilled and large labour(India has the world's second largest labour force, with 467 million people.), government support and market. All these definitely are the factors that companies are looking for to set up their factories in India. India have been trying its best to attract foreign TNCs that its economic growth has averaged 7.5% a year. It is no surprise that India is successful as a NIE.
It is hard to predict what will happen to the electronic industry in India. However, based on what India has achieved today, it will continue to prosper in the years to come. Though it will not probably surpass China to be the leading NIE, its success as a NIE will bring an economy boost to its country and improve the standard of the country.
I disagree with what Zhexian has commented. It is true that India's workers are more English-educated compared to China. However, in the industry workforce, skills are mostly what people are looking for. If there's a need to be fluent in English for their job, they would definitely brush up their English. They wouldn't let their ability in English deter them from success. Though some may not be as educated, but their skills will ensure their efficiency. Thus, I don't think that their low-education will affect the country in terms of industry workforce. As long as the country tries their best to maintain and improve their economy, it doesn't matter whether India win China or vice versa as both country are already successful.
Minhui
India has been successful as an NIE because of its market.
India has a huge domestic market solely for electronic products that has been constantly developing and growing successfully, due to India's large population of more than 1.1 billion. For example, the ELCINA estimated that approximately 2 million mobile phone users were added each month. The accessibility to markets is crucial for a TNC to set up companies, thus TNCs were exceptionally interested in tapping into India's huge market.
India had not being successful as a NIE because poverty still exists and some parts of India is not industrialized yet. In addition the illiteracy rate in India is also high and there is a huge percentage of Indian still working in primary industries. Although, India had managed to attract many transnational companies (TNC) and bolster its trade, the uneven growth of wealth and high population growth offset the gains.
I predict that the India’s electronics industries will grow as American TNC are also attracted to set up in India. I think that it might one day complete with China a few years down the road as the growth rate of industries is quite high.
I disagree with Chun Yee. India is growing at a very fast rate which is undeniable. On the other hand, this uneven grow of wealth result in widening the financial gap between the poor and the rich. This made the living conditions of the poor worse and many is starved to death due it.
Rong Yu
I have similar sentiments as Min Hui.
In the industrial world, being skillful is the most important thing for an industry to be successful. It is true that being fluent in languages is important, but the top priority of the success of an industry is still for the workers to be skillful and better-equipped for jobs.
In my opinion, India will prosper in the future. Not because of how fluent in English the workers are, but because India has an abundance of skilled labour, available at lower costs compared to other countries.
For example, according to the governing body of Tamil Nadu in 2007, the state consisted of over 250 engineering colleges, 230 polytechnics, including the Indian Institute of Technology which provided students with a higher technological education. Each year, Tamil Nadu produces about 43000 engineering graduates and 61000 diploma holders.
Thus, with all the statistics as presented above, it is no doubt that India will become one of the most successful TNC, or electronics/manufacturing industry in the near future.
Hi everyone, i am impressed by the comments you have left so far. It shows deep thought and effort. The discussion going on is thought provoking. Good job! :)
Firstly, India has been classified as a NIE is due to its rapid development in the past few years. India provides low cost labour and great domestic market which attracts other countries like USA to invest in India.
I agree with Junkai that in the future, India will face huge competitiveness with China as both countries are great at mamufacturing and is one of the popular destination visited by the world today. From my side of view, I think that having competitiveness is a good thing as it will push te country to improve itself.
India has been a successful NIE because it has a supportive government that implemented tax rebates and incentives to encourage foreigners invest their companies in India, setting up bases and headquarters.
The future of the electronics industry in India will be very optimistic althrough China is the leading leader of the electronics industry. India at the very least have a steady rise of electronics manufacturing industries and it is shifting away from agricultural sector.
In summary, the economy in India have a slight chance to dominate the world's economy due to the fact that China and India share the same characteristics like labour costs, education and rising demand of products.
Post a Comment
<< Home