Question 16GS3GS1
Why is there a shift of labour-intensive industries from China to South and Southeast Asia? Discuss the advantages and challenges for India in this context. (Answer in 250 words)
Introduction
The process of de-localization and de-industrialisation of labour-intensive industries from China to South and Southeast Asia is a result of wage arbitrage in southern Asian countries and the Corporate strategy.
30 words
Main Body
Causes of shift
1High availability of cheap labour - In textiles and garments industry in Bangladesh has lower labour costs (exports of garments from Bangladesh)
2Wage Arbitrage in south Asian countries like India
3Ease of payage - In china abandoned baggage in south Asian and ASEAN countries speak English - better communication
4Dominance of china in manufacturing - wages power wary at china's growth - China's strategy to deindusrialize from china
Examples: Samsung factory opened in India, Usha Hindustan has for Apple producers and eco labour intensive like Lego manufacturing
Advantages:
1Creation of employment - high employment elasticity of manufacturing sector
1Growth of GDP - China 8 9 trillion by 2030 - Increased export potential - 8 7 trillion by 2027
Challenges:
2Poor skill capacity - only (Six) employable
2Challenges of Gaze of Doing business
3Environmental concern - pollution India must de-regulated to reap benefits of shift with sustained development of ecology in mind
163 words7 paragraphs
Diagram
Map of South Asia showing India, Bangladesh, Thailand, Vietnam, Cambodia with labels
Topper
Ishitha Anand
AIR 50
Subject & Paper
GS3GS1
Topic
Distribution of Key Natural Resources across the world
Location of primary, secondary, and tertiary sector industries
Writing Stats
193
Total words
7
Paragraphs
analytical and structured
Tone