Why is there a shift of labour-intensive industries from China to South and South-East Asia? Discuss the advantages and challenges for India in this context. (Answer in 250 words)
Introduction
Ever since the opening up of the economy in the 1960s, China has achieved great height in manufacturing production. However due to economic and geo-political reason the labour intensive industries have been pushing out of China recently.
37 words
Main Body
Supply chain issues led in China facing companies to move out. Supply Chain resilience initiation by U.S & Japan. Cost advantage in South & S.E Asia. Vietnam as an alternative for cheap textiles. Labour curse and justice in China. Labour strikes in iPhone manufacturing plant in China. Pricing initiative over by South and South-East Asian nations. India's PLI scheme attracting smartphone in manufacturers. US-China trade war with raising of tariffs forcing manufacturers to move out. Diversification and economic slowdown in China compared to faster growing economies like India.
Advantages for India: Attracting labour intensive sector to address unemployment problem. Cost advantage in including...
Advantages for India: Attracting labour intensive sector to address unemployment problem. Cost advantage in including labour and technological cost lowered. Pricing initiative over by South and Southeast Asian nations. India's PLI scheme attracting smartphone in manufacturers. Increased gross or improving manufacturing output. Ranchipuram emerging as manufacturing hub. Pricing stability if initiates the Code on Wages 2019.
Challenges for India: Ease of doing business close compared to ASEAN nations. Free trade agreements like KEEP for ASEAN nations. Brain drain of educated talent. Difficulty in global leader positioning like Singapore.
Conclusion
Hence India needs to align its policy and legal setup to take the 'China + 1' and out of China opportunity.
21 words
Diagram
Box showing 'China to South and South-East Asia - Factors' with numbered points
- Good introduction contextualizing China's rise
- Comprehensive listing of factors driving relocation
- Mentions specific schemes like PLI
- Discusses US-China trade war implications
- Addresses India's positioning
Aditya Narayan
International Relations and Trade
Global Value Chains and Manufacturing Shift
Relocation of labour-intensive industries from China to South/Southeast Asia
249
Total words
2
Paragraphs
informative, structured
Tone