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
Rise of Vietnam, Cambodia due to shift from china is highlighted by IMF report as china share of manufacturing stagnant to CAGR.
Shift from china to south-east Asia:
Push factors:
1Rise in labour cost in china due to high per-capita income & labour regulation
2Zero + CAFTA policy: push counties to do-risk supply chain
3China's USA: trade war call for China + 1
4PPCs crackdown on IPR, technology seen as treat by luxury brands) Good to comprehend
5Aging: china population due to one-child policy: low youth supply
Pull factory:
1High attractive policy for business
Tax incentive → lags (South-east countries)
2Case of Doing Business in countries
Vietnam (Plug and Play model)
3Low-labor-cost, land-cost compact to china
4Potential nation to overcome countries
5FTAs with ASEAN by IPEF lead to low cost for companies
India: advantages:
1Friendshoring: can attract industry to India
Apple iPhone
2MASSIVE CUES (Critical value chain) - Integration of china density on democratic attack
3Leverage Demographic Dividend in labor intensive as) Joy Industry
Pull factory:
1High attractive policy for business
Tax incentive → lags (South-east countries)
2Case of Doing Business in countries
Vietnam (Plug and Play model)
3Low-labor-cost, land-cost compact to china
4Potential nation to overcome countries
5FTAs with ASEAN by IPEF lead to low cost for companies
India: advantages:
1Friendshoring: can attract industry to India
Apple iPhone
2Massive CUES (Custodial value chain) - Integration of china density on democratic attack
3Leverage Demographic Dividend in labor intensive as) Joy Industry
4Reduce china dumping and low cost pressure for msmE
India: disadvantage
1Shift to Vietnam: not India due to structured issue (a) labour reform
2Compete with south-east countries: incentive → tax cuts challenging
3Labor-cost: higher compared to Laos, ASEAN a) minimize max
4Lack of uniform policy unlike communist regime in Vietnam
5PLZ to attract wall leverage
Structural reform: implement labour codes and basic
Skilled: support to msmE
Thus leverage shift is key for Vietnam vs India (s) share of manufacturing in OPEC
4Reduce china dumping and low cost pressure for msmE
India: disadvantages:
1Shift to Vietnam: not India due to structured issue (a) labour reform
2Compete with south-east countries: incentive → tax cuts challenging
3Labor-cost: higher compared to Laos, ASEAN a) minimize max
4Lack of uniform policy unlike communist regime in Vietnam
5PLZ to attract
Wall leverage
Structural reform: implement labour codes and basic
Skilled: support to msmE
Thus leverage shift is key for Vietnam vs India (s) share of manufacturing in OPEC
445 words8 paragraphs9 bullet points
- Cites IMF report for credibility
- Identifies both push and pull factors clearly
- Mentions specific examples (Vietnam, Cambodia, Apple)
- References India's demographic dividend
- Includes policy frameworks (IPEF, CAFTA)
- Clearly presents India's disadvantages
- Mentions structural reforms needed
- Compares India with Vietnam
- Provides concrete policy recommendations (labour codes, MSME support)
- Identifies specific structural barriers
- Recommendations for labour codes
- Comparative analysis with Vietnam
Topper
Aakash Om Trivedi
AIR 732024
Subject & Paper
GS3GS1
Topic
Global Economics and Trade
Shift of Manufacturing Base from China to Asia
India's Position in Global Supply Chain
Writing Stats
445
Total words
8
Paragraphs
9
Bullets