"Why are "Made in China" products cheaper than "Made in India" products, but the salaries in China are much higher than India"?
"Most of the small products bought in India are made in China. Why is India not able to produce such small products"?
These are some of the questions people keep discussing or wondering about. It's true that salaries are certainly higher in China than in India. Therefore, it is a valid question to ask 'Why are "Made in China" products cheaper than "Made in India" products'? or 'Why is India not able to produce small products'?
The answer to these questions can certainly be provided by manufacturing startup entrepreneurs or SMEs (Small and Medium-scale Enterprises). People who are working on the ground can certainly be able to list down the reasons as to why 'Made in China' products are cheaper or why is India not able to produce everyday common household goods.
However, the question then arises is 'are entrepreneurs or SMEs involved in manufacturing policymaking in India'? Did anyone from the policymaking side ask manufacturing entrepreneurs or SMEs about why is India not able to produce small common household goods? No, they did not.
Even the 'Make in India' program does not give focus to small manufacturing entrepreneurs or SMEs. 'Make in India' program simply focuses on large manufacturing companies, especially foreign manufacturers. The policymakers shall notice that these foreign manufacturers will not produce small common household goods. Only an Indian entrepreneur or manufacturing startup or SME can produce these simple common household goods. However, Indian entrepreneurs instead of producing these simple common household goods in India end up buying these goods from China. In other words, Indian entrepreneurs are becoming traders and not manufacturers.
This can be resolved. This can be corrected. India can certainly become a manufacturing hub of these simple common household goods. India can reduce its massive trade deficit of 60+ billion US$ with China. India can create millions of manufacturing jobs.
However, small scale entrepreneurs or SMEs need to be involved in the manufacturing policymaking. Small scale manufacturing startups or SMEs need to be involved in developing the policies for the 'Make in India' program.
These manufacturing startups, or entrepreneurs, or SMEs will be able to list down the reasons for not being able to produce simple common household goods in India. Reasons such as a lack of focus on developing manufacturing technologies in India, a lack of focus on developing the manufacturing processes, a lack of focus on training the workforce, a lack of focus on providing financial support to manufacturing startups, etc. Besides this lack of focus, we must also be able to understand different kinds of manufacturing approaches, especially top-down manufacturing, and bottom-up manufacturing.
Once, we as a country are able to identify the issues, then, we can certainly come up with solutions and start producing simple common household goods in India itself instead of buying these goods from China. However, to identify the issues, we as a country need to involve small scale entrepreneurs in policymaking. Unless we do that, we will continue to buy simple common household goods from China. We will continue to lose out on creating millions of manufacturing jobs in India.
India as a low middle-income country can not afford to lose out on generating millions of manufacturing jobs. India as a low middle-income country can not afford to grow at lower GDP growth. The population is huge and it is imperative to generate millions of jobs. And only the manufacturing sector can generate millions of manufacturing jobs. Therefore, it's time, our policymakers take notice of the fact that without involving manufacturing startup entrepreneurs in the policymaking, we will not be able to produce small common household goods in India.
or
"Most of the small products bought in India are made in China. Why is India not able to produce such small products"?
These are some of the questions people keep discussing or wondering about. It's true that salaries are certainly higher in China than in India. Therefore, it is a valid question to ask 'Why are "Made in China" products cheaper than "Made in India" products'? or 'Why is India not able to produce small products'?
The answer to these questions can certainly be provided by manufacturing startup entrepreneurs or SMEs (Small and Medium-scale Enterprises). People who are working on the ground can certainly be able to list down the reasons as to why 'Made in China' products are cheaper or why is India not able to produce everyday common household goods.
However, the question then arises is 'are entrepreneurs or SMEs involved in manufacturing policymaking in India'? Did anyone from the policymaking side ask manufacturing entrepreneurs or SMEs about why is India not able to produce small common household goods? No, they did not.
Even the 'Make in India' program does not give focus to small manufacturing entrepreneurs or SMEs. 'Make in India' program simply focuses on large manufacturing companies, especially foreign manufacturers. The policymakers shall notice that these foreign manufacturers will not produce small common household goods. Only an Indian entrepreneur or manufacturing startup or SME can produce these simple common household goods. However, Indian entrepreneurs instead of producing these simple common household goods in India end up buying these goods from China. In other words, Indian entrepreneurs are becoming traders and not manufacturers.
This can be resolved. This can be corrected. India can certainly become a manufacturing hub of these simple common household goods. India can reduce its massive trade deficit of 60+ billion US$ with China. India can create millions of manufacturing jobs.
However, small scale entrepreneurs or SMEs need to be involved in the manufacturing policymaking. Small scale manufacturing startups or SMEs need to be involved in developing the policies for the 'Make in India' program.
These manufacturing startups, or entrepreneurs, or SMEs will be able to list down the reasons for not being able to produce simple common household goods in India. Reasons such as a lack of focus on developing manufacturing technologies in India, a lack of focus on developing the manufacturing processes, a lack of focus on training the workforce, a lack of focus on providing financial support to manufacturing startups, etc. Besides this lack of focus, we must also be able to understand different kinds of manufacturing approaches, especially top-down manufacturing, and bottom-up manufacturing.
Once, we as a country are able to identify the issues, then, we can certainly come up with solutions and start producing simple common household goods in India itself instead of buying these goods from China. However, to identify the issues, we as a country need to involve small scale entrepreneurs in policymaking. Unless we do that, we will continue to buy simple common household goods from China. We will continue to lose out on creating millions of manufacturing jobs in India.
India as a low middle-income country can not afford to lose out on generating millions of manufacturing jobs. India as a low middle-income country can not afford to grow at lower GDP growth. The population is huge and it is imperative to generate millions of jobs. And only the manufacturing sector can generate millions of manufacturing jobs. Therefore, it's time, our policymakers take notice of the fact that without involving manufacturing startup entrepreneurs in the policymaking, we will not be able to produce small common household goods in India.
