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)
Main Body
Rapid industrialization in China, led by Deng Xiaoping's policies made it as "Factory of the world".
These industries included:
Footwear
Toys
Textiles
Leather
Shift of these industries to South & Southeast Asia
1Economic factors - decline in labour costs in countries such as Vietnam, Thailand
2Geopolitical Desking - companies following China's strategic to relocate enterprises to South & Southeast Asia - to reduce overdependence on China
3Political backlash - Communist party's backlash on private sector, opaque norms, anti-democratic policies
4Evolving Trade Dynamics - Tariff war unleashed by Trump, imposition of 160% tariffs on china, has led to relocation of supply chain
to South & Southeast Asia - to reduce overdependence on China.
3Political backlash - Communist party's backlash on private sector, opaque norms, anti-democratic policies
4Evolving Trade Dynamics - Tariff war unleashed by Trump, imposition of 160% tariffs on china, has led to relocation of supply chain
Advantages for India:
1Attract foreign investment - FDI inflows will rise
2Boost domestic manufacturing sector -
3Employment opportunities for unskilled or semi-skilled workers (Garment, Coffee etc)
4Boost exports & GDP growth rate
Challenges for India:
1Regulatory cholesterol - bureaucratic red tape & complex business environment -
2Infrastructure gaps - poor logistics, electricity, water supply -
3Skill deficit - only 4-5% of workers receiving vocational training
4High tariffs - makes inputs uncompetitive -
Schemes like Make in India, PLI & greater deregulation can create opportunities for India.
3Foxconn plant for i-phone manufacturing in T.Nadu.
3Employment opportunities for unskilled or semi-skilled workers (Garment, Coffee etc)
4Boost exports & GDP growth rate
Challenges for India:
1Regulatory cholesterol - bureaucratic red tape & complex business environment -
2Infrastructure gaps - poor logistics, electricity, water supply -
3Skill deficit - only 4-5% of workers receiving vocational training
4High tariffs - makes inputs uncompetitive -
Schemes like Make in India, PLI & greater deregulation can create opportunities for India.
335 words11 paragraphs
- Historical context of China's rise
- Multiple causal factors identified
- Contemporary geopolitical factors included
- Comprehensive analysis of advantages and challenges
- Mentions government schemes like Make in India and PLI
- Identifies specific infrastructure deficits
- Provides concrete example of Foxconn investment
- Solutions-oriented conclusion
Topper
Saurabh Sharma
AIR 146
Subject & Paper
GS3GS1
Topic
India's Economic Policies and Industrial Growth
Shift of Manufacturing Industries to South Asia
China's Industrial Shift, Labour-Intensive Industries, India's Opportunities
Writing Stats
335
Total words
11
Paragraphs