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)

Reasons for this shift: (A) Push factors (away from China) - (1) slow down of Chinese economy especially after COVID-19 ranking sector basis (2) Declining fertility rate of China (2.1.0-1.3) - shortage of labour supply in future. (3) Candidates and State Control over industry - offensive policies. (B) Pull factors (towards South and Southeast Asia) like Vietnam, Thailand etc. - (1) Affordable policies like lower tariff, FTA - carry important raw materials. (2) Abundance of labour - highest labour force in India. (3) Future hubs of growth - Vietnam has emerged as major export hubs.

Advantages for India - (1) Expansion of manufacturing base - take it to 25% of GDP ([illegible] Apple; phone factories in Tamil Nadu [illegible]). (2) Slone agricultural risks - taking displaced labour out of agriculture. (3) Skill development of labour force. (4) attract foreign investment ([illegible]) FDI base to 21 billion USD in FY 25. (5) link Indian supply chain to global value chain ([illegible]) automobile manufacturing. (B) Challenges for India - (1) Tough environment to do business - lack of land reforms - expensive, inflexible labour laws. (2) tariff regime of India - high tariff deters companies to invest - only 5% of skilled workers labour are formally skilled - high logistics. (3) Infrastructure gaps - high logistics - lacking workers - labour is formally skilled. (4) Internal security - insuring in North east.

Skill development of labour force. (4) attract foreign investment ([illegible]) FDI base to 21 billion USD in FY 25. (5) link Indian supply chain to global value chain ([illegible]) automobile manufacturing. (B) Challenges for India - (1) Tough environment to do business - lack of land reforms - expensive inflexible labour laws. (2) tariff regime of India - high tariff deters companies to invest - only 5% of skilled workers labour are formally skilled - high logistics. (3) Infrastructure gaps - high logistics - lacking workers - labour is formally skilled. (4) Internal security - insuring in North east. This decamping of labour intensive industry law help India achieve vibrant Bharat goal by 2049.