Topic: India is the new economic leader of global south. And replacement for China?... - page 4. (Read 1405 times)

In fact, when low wages become something that is determined by a country, there will be subsidies from the government that help reduce the burden on people who have low wages, but the issue of low wages has become something that is discussed in many countries, even my own country Indonesia, might be interesting. investment interest but economic growth will be very stagnant.
From my point of view low wages are not much different from modern colonialism, but it is all a decision of the government of each country, because investors may be interested but large social disparities will not be avoided.
However, if the india government wants to compete with China, they must set low wages for workers in their country so that investors are interested.

In fact, when low wages become something that is determined by a country, there will be subsidies from the government that help reduce the burden on people who have low wages, but the issue of low wages has become something that is discussed in many countries, even my own country Indonesia, might be interesting.

China on the other hand has a much more disciplined workforce and they are more technologically advanced, so most manufacturing are done with robots and more efficient labor. 

I don't think the low wage in a country is an advantage their economic growth, because low earnings people is also closely related to their ability to expenditure which means that they are not a good market. Low wages may lead to attract foreign investment, but low-wage workers have limited purchasing power, hindering domestic consumption and stifling demand for any products. The reasons companies or investment come into a country are not only for a good business to start, but also a good market for products to sell. Sustainable economic growth is the main reason for a country to gain power in global.

While other companies have started to do the same, it will still take some time for everything to be materialized. Like you mentioned, probably it would take a minimum of ten (10) years for companies to neutralize its resources and conduct their business outside China.

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1 https://www.pbs.org/newshour/show/why-production-of-apple-iphones-has-been-moving-from-china-to-india#:~:text=Then%20last%20year%2C%20COVID%2D19,more%20business%20outside%20of%20China.

I don't quite see India on it's way to replacing China as the West's new manufacturing powerhouse yet. For now it seems more like a matter of companies hedging their bets, given the fragility of the supply chain that was unveiled by Covid and China's labour cost slowly catching up.

Still, India seems in a far better position then just a decade ago. Give it a few more years and we'll see who comes out on top.

I think it is very much possible, but it will take indian more than a decade to reach the height of china in terms of industrial output.
Look at china's industrial system, and recently they are forming a very strong relationship with Russia who have the raw materials required to take there economy and trades the a different level.
I really do believe that it will take india years to even match their industrial output, but as for now India is not ready yet for such a position now.

India is a big country and it has a huge population because of its high manufacturing volume and some of the world's biggest companies have CEOs from India. The CEO of the world's biggest tech giant Google is Indian.  India is very advanced in terms of technology so India is growing economically. But India has not yet become like China. China is the top exporting country so it is natural that their economic growth will be high.  So India will not be able to become like China very easily in terms of economy

Nope, and it will take a few more decades for India to achieve the manufacturing ability of China.

But Western countries realized it years back and that is why they have been moving their part of manufacturing plants to India since post Covid era. For example, Apple invested and started their manufacturing plants in India so that in the future they won't be trapped under China's monopoly but as of now most of the core level technology is still imported from China to India for example semiconductors and over time things may change.

As if one country is homegenically one single body.
How good and cultured is the common man? How good is education in the rural zones?

That is where a country advances, not those mainstream points of "progress". Scandinavia has a better Rep, than most countries. The Baltic states. .

Being an Indian, I would say that it will be almost impossible for India to overtake China. The success of China can be attributed to the fact that there is minimal government intervention and almost zero regulations. But in India, hardly any importance is given to merit and with each passing year the government intervention is increasing. In the state of Bihar recently the quota in education and jobs for "backward classes" were increased to 75%. That means that 75% of the employees will be selected based on their caste and just 25% will be selected on the basis of their merit. Given this, how can India overtake China?

India is the new leader of the global south .... And a replacement for China ?

China has recently started to openly surrender its position. both politically and economically.
politics is not the place to discuss, but the economy leaves much to be desired. Although it is partly a consequence of politics )

But to the main point - in the "Global South" today there is a situation when yesterday's leader, China, can no longer fulfill this role (although it wants to), and no one can take this place except India, due to many reasons.

At the same time, India looks much more attractive to the "Global West" than China, which has decided to go into a dictatorship inside, and has a rather dubious foreign policy. China has ceased to be a profitable global factory, plus purely political contradictions with the West. It was the outflow of Western investments, and the decline in demand of the Western market for products manufactured in China, that became the catalyst that accelerated the 3 processes:
- Import growth
- Reduced exports.
- And as a consequence, a shrinking trade surplus.

At the same time, a very complicated situation is brewing inside China with a chain of bankruptcies of budget-forming companies. Of course, China will hide it, but as they say "you can't cheat arithmetic, and 2+3 will never be 10". Another problem is the relocation of Western assembly sites from China. Large regional high-tech companies are also leaving Chinese sites - for example, Samsung.

And guess where all this is moving to ? That's right - to INDIA ! Stable, predictable, adopting the Western vector of development, and moving away from contacts with "dubious countries". India does not "beat in hysterics of dedolarization", does not conduct dubious negotiations, and does not support economic terrorism of some other countries against the world economy. India benefits from stability, long-term mutually beneficial relations with the developed world, a well-deserved place in the world economy and financial system, and realization of its regional ambitions, which China is beginning to lose by failing to implement 2 projects:
- "Yuanization" of the BRICS countries
- An attempt to "put the same BRICS club members on the needle" of importing Chinese products.
It was a poorly concealed but absolutely understandable attempt to save the economy, but ...

What about India? A country with a huge territory and great human potential, developed industry, and long-established ties with the Western world. India has a very good education, and not a small middle class, with good education from western educational institutions. In India, stealing Western technology is not part of the economy as it is in China, for example. In terms of logistics to EU and African countries, India is more conveniently located. Plus in India there is no problem of population aging, which started to give itself in China "thanks to" the policy - "one family - one child". It is also worth paying attention to the IT market - it is perfectly developed in India and continues to compete with other markets. Plus - wiser, more balanced and liberal business policy is what China is losing and will not contribute to the free development of the economy.


So the question is - what do you think about India's potential, opportunities and prospects, in light of the idea of India becoming at least the economical "Head of the Global South", and possibly "one of the poles of the world system" ?

So the question is - what do you think about India's potential, opportunities and prospects, in light of the idea of India becoming at least the economical "Head of the Global South", and possibly "one of the poles of the world system"?

Being an Indian, I would say that it will be almost impossible for India to overtake China. The success of China can be attributed to the fact that there is minimal government intervention and almost zero regulations. But in India, hardly any importance is given to merit and with each passing year the government intervention is increasing. In the state of Bihar recently the quota in education and jobs for "backward classes" were increased to 75%. That means that 75% of the employees will be selected based on their caste and just 25% will be selected on the basis of their merit. Given this, how can India overtake China?

I agree with both the points. But at the same time, the conditions that are prevalent in India are existent in other countries as well. Examples are Indonesia, Bangladesh, Myanmar, Pakistan and Vietnam are a few examples. Investors are obviously going to select one country where they will find less amount of bureaucracy and red tape. The main issue with India is that there is a lot of corruption and red tape. International investors, unless they tie up with one of the Indian partners, find it very tough to do business in India.