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India’s $30.71 billion plan to rival China factories to lapse after it disappoints (www.straitstimes.com)

submitted 4 days ago by [email protected] to c/[email protected]

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[–] [email protected] 5 points 2 days ago

India can't rival China's productivity: its culture is too different.

( dad was of India, but Anglo-Indian/British. I've more understanding of India's culture because family talked about it, than most North Americans, but never lived there )

I've been told that India is the ONLY country in the world, where bribery is normal to get the government-official to actually do their job, whereas normally it's to get them to not do their job..

The caste-system's entitlement conditioning, of the upper castes, compared with the abused-all-the-time lower-caste people..

that caste-system is itself the enemy of Indian competitiveness.

You can't just stick makeup on some random animal & claim it's actually some completely-different kind of animal..

The reactions, the instincts are different.

There are books on offshoring work, & the dangers of doing-so, with different cultures..

In Japan there is now a "loud American" job-position: the person there makes certain that the operation doesn't keep quietly accommodating corrupt-management or wrong-strategy, until they're sunk/dead: the loud American's job is to speak what the conforming Japanese want said, but wouldn't ever say, because they aren't gaijin.

India's famous for power-distance: inferiors won't be tolerated to speak truth to superiors, ever.

That is produced by their caste system.

That isn't competitive.

It's deeply cultural.

Modi's Hindutva India isn't likely to lessen that, is it?

_ /\ _

[–] [email protected] 11 points 3 days ago

I’m not sure if this is still true but awhile back, I read that setting up factories in India can be expensive due to lack of energy infrastructure. A lot of factories expect to run 24/7 and the added cost of backup power systems was an issue for investors, especially in low-margin, high volume, competitive industries where every hour of downtime (or fuel costs for backup generators) made a difference.

Those grid capacity issues may have been fixed in the time since I read about it. It was a few years ago and the energy-sector has changed a lot. But if that’s still a problem, it would be a better place to invest government funds, especially now that renewables+battery backup are relatively cheap and don’t have to be imported.

There’s so many reasons India would make an ideal manufacturing hub. If they can fix whatever issues (infrastructure or bureaucracy or whatever), they won’t need a subsidy scheme to attract investment.

[–] [email protected] 6 points 3 days ago

Sad to hear. India desperately needs industry; unemployment in the country is so extremely overwhelming it will have adverse effects on the whole world in many ways if not contained.

The article mostly blames red tape and bureaucracy - while I'm sure it's a problem I highly doubt it's the root cause. The root cause is just that investments everywhere are broadly down in general; there's too much uncertainty in the current world to incite investor confidence.