In India, ‘next great’ industrial story

In India, 'next great' industrial story - International Herald Tribune, April 17, 2006
...Still, India is not the only country gunning for new factories. Southeast Asian nations, including Thailand, Vietnam and Cambodia, are also expected to see a spurt in manufacturing. India lags those countries in infrastructure, but has one big advantage: a home market of more than one billion people.
Indian wages are also relatively low, beginning at about $2 a day for factory jobs. That compares with a minimum of $3.50 to $4.50 a day in Thailand, depending on the area, and the $4 to $8 that some Chinese workers are beginning to command as labor shortages spread.
China is not in any immediate danger of falling behind, however. Its exports exceed India's by several multiples, and the gap keeps widening. In 2005, India's exports were worth about $8 billion a month, and China's, $63 billion, with manufactured goods the bulk of both countries' exports.
Experts say the two countries will occupy different positions in the vast market for offshore manufacturing. The first wave of low-cost manufacturing to be sent overseas - the making of toys, electric kettles and television sets, among other wares - will remain out of India's reach because of the difficulty of running Indian factories as large as Chinese ones. Official paperwork and regulation is still sticky here, and power still costs about twice as much...
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