Every country in today’s era is working hard so as to make their economies strong and thus increase their GDP. This surely gives rise to better job opportunities to flourish, better infrastructure of the countries and also a tourism sector to thrive. India is one of the developing countries and has been able to mark it’s high GDP growth irrespective of its high population rate. But still there are various factors which makes it a bit tough for India to develop completely and cope up as a developed nation. The factor is dependency on other countries for most of the manufacturing technologies and products. India prefers importing most of the goods and services from other countries, and thus lacks its own manufacturing and research technologies. One of the most prominent country from which India is importing is China. China has been one of the most successful countries in exporting most of its products and thus achieving maximum productivity growth as compared to other big nations like the USA and Japan.
India is dependent on Chinese products for most of its cost saving benefits. Most of the products we do acknowledge and bully are Chinese as we do find them more feasible and lying in our budget. But still India is fighting back and stopping the import from China and various other countries and focusing on increasing it’s export to other countries. The mission and scheme as launched by our Prime Minister Mr. Narendra Modi of “Make In India ” has brought up various startups and investment in manufacturing technology and has led to growth of the country’s economy and job opportunities.
But still India does lack production and manufacturing of products at cheaper rates as compared to what China does. There are various things which do affect the cause of same which include:
- Availability of cheap skilled labour: India being 2nd in world’s population, still lacks much of a literacy rate, which is not a case in China and other countries. People in China are much more skilled and educated . So companies do acquire much of these as a resource for their company at cheaper rates and thus reduce their manufacturing cost. While in India we lack much of literacy rate, thus affecting our availability of skilled labour
- High production: Productivity as mentioned above of China is much more as compared to other countries. This reflects that they have an abundance of material which not only can be used for manufacturing products in their own country but also exported to other countries. India lacks much of the raw material required for manufacturing anything, so they do rely on foreign factors for manufacturing.
- Selling products at cheaper rates : Chinese products are well known for their cheap rates. This mostly fascinates people to buy them. This surely leads to reduction in the sales of the other similar product and thus the company faces losses thus the company’s only 2 choices “Either to merge with that Chinese brand or to shut down”. It’s frequently bseen that most businesses and companies get off the business which gives these Chinese products a plus point and they become the lone survivor.And in future times they do raise the prices which market them with huge profits.
- Production of duplicate or matching product: China has been investing more of its money in coping things,since we know for manufacturing of any new or original product, companies invest in it’s research work, qualified labour and number of tests and thus find the best and feasible product. China misses this step and jumps off to the production which saves a lot of money and also the manufacturing cost.
“There are many more reasons which give China and it’s product great power in our country. But we should understand the requirement of not investing our money in those Chinese products and rather bring up products manufactured in our own country so as to keep the countries money within the country. Also more startup ideas must be motivated to flourish and thus growth productivity must be targeted so as to manufacturers and use products made in our country only and rather from buying it from other countries, we must export them . These few efforts would bring out significant change which would lead our country to prosper be one of the developed countries in coming years”.