"Made In India" Is Attractive And Faced With Many Difficulties.

The low cost of labour is the main advantage of India's manufacturing industry.

India has been at the forefront of the world's lowest labor cost countries. According to the Bureau of labor statistics, the labor remuneration (including wages, benefits, social insurance and taxes) in India's manufacturing sector in recent more than 10 years has increased very little, from only 0.68 US dollars per hour in 1999 to 1.5 US dollars per hour now, while the remuneration of workers in the same period increased from US $0.53 per hour to 1 US dollars per hour.

The manufacturing industry has low cost, simple operation technology and strong labor intensity, making India's domestic labor-intensive industries such as textiles,

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Such growth potential is huge.

At the same time, its manufacturing products are closer to the high-end markets in Europe and America in terms of design concepts and sales channels.

In addition, India has a place in the field of high technology.

Thanks to the relative popularity of English and the relative familiarity with the patent system in Europe and America, India has obvious advantages in biology, chemistry, electronics and communication, and the space for international cooperation is larger.

Since the "India manufacturing" plan was put forward, it has attracted some overseas investment.

Foxconn, the world's largest smartphone and electronics manufacturer, said in August 2015 that it will open 10 to 12 factories in Western India by 2020.

In the same period, General Motors announced plans to invest $1 billion in the

Develop new models.

Some of the labor-intensive enterprises originally invested in China, such as Play-Doh, Monopoly, and HASBRO (Hasbro), have turned their investment vision to India because of China's growing labor shortage.

Even some Chinese smartphone manufacturers, HUAWEI, Canada, cool and OPPO, are planning to produce handheld devices in India; Xiaomi is working with Foxconn to assemble cell phones in India; Lenovo plans to cooperate with Flextronics.

In this regard, India's local entrepreneurs are confident about the future development of India's manufacturing industry.

B. Muthuraman, President of Tata Steel Corp, said: "the manufacturing industry in India will also have the leading position in the world like China."

The abundant labor force provides abundant labor resources for India's manufacturing industry, and also provides favorable conditions for the development of India's manufacturing industry. However, to replace the leading position of China's manufacturing industry, the number of labor force alone is far from enough.

At present, India should overcome many problems.

Weak infrastructure is hard work.

Weak infrastructure is a hard job for India's economy and manufacturing.

In China, 20% of GDP is used for infrastructure construction every year, and the perfect infrastructure provides convenient logistics conditions and adequate energy supply for the manufacturing industry.

In India, only 3% of GDP is used for infrastructure every year.

Long term arrears of infrastructure have become the soft spot of India's economy and weakened the potential of India's economic development.

The traffic system is chaotic.

India has never built an efficient and perfect pportation system.

Roads in most areas are in poor condition and can not meet the demand of logistics.

As the seventh largest area in the world, India has only three main ports.

Mumbai, the largest port city in India, has a population of about 12000000, but has only one artery across the north and south.

It usually takes only 2 hours of logistics in China, and it takes at least 4 hours in India.

This forces investors to choose to invest and build factories on the high priced land which is closer to the port and increase the investment cost.

The electricity supply gap is very large.

India has an annual electricity gap of more than 10%, which is one of the lowest per capita electricity consumption countries in the world.

In August 2012, the three major power grids in India were all paralyzed, more than 20 states were blackout on a large scale, more than 600 million people were affected, the state invested less in power plants, the management was chaotic, and the situation of electricity leakage was repeatedly banned. The power system often had problems.

Limited domestic electricity can not meet the normal living needs of residents, let alone meet the daily production needs of the factory.

In order to improve infrastructure, the government of India plans to invest $one trillion in infrastructure construction between 2012 and 2017.

And five five industrial corridors including a large number of highways, railways and Telecommunications hubs.

However, due to the inefficiency of the government, the construction of these projects is still in procrastination.

The system is inefficient and the bureaucratic system is hard to change.

There are many restrictive factors in the current political system of India. No matter what the political leaders want to do, they must go through complicated procedures at the central level, and even need more complicated examination and approval in various countries.

Such a long process of examination and approval has greatly lost its efficiency and is often used as an inert shield.

India's laws and regulations are complicated and bureaucratic system is serious.

In India, for example, there are about 50 central labor laws and 170 local labor laws, which are very strict about the protection of labor.

The labour dispute law, promulgated in 1947, stipulates that enterprises with more than 100 employees must obtain government approval when layoffs are made. When applying to the government to dismiss people, they often have to wait for lengthy and cumbersome approval procedures, and the possibility of government approval is minimal.

In 1970, the labor contract law stipulates that enterprises with more than 20 employees must obtain government approval before hiring contract workers.

In view of the strict restrictions on recruitment and dismissal, most enterprises in India are forced to maintain a smaller scale.

According to a survey by McKinsey, a consultancy, "although the relevant provisions of the labor law are designed to improve workers' welfare, it is contrary to expectation. Most enterprises prefer not to expand their production scale because they are afraid of violating labor laws".

Singapore's late prime minister Li Guangyao once pointed out: "India once launched a national planned economy, and the scope of state control was too wide, which led to the solidification of bureaucratic system and rampant corruption, which wasted decades of development opportunities."

However, it is not easy to change this situation.

The India strike came from the government's emphasis on "decentralization", hoping to reduce administrative interference and consolidate bureaucracy.

In terms of enterprise employment, modi decided to amend the labor law, and suggested that factories with fewer than 300 workers could be laid off without government approval.

But they were opposed by laborers for violating the interests of workers.

The quality of labor force is highly polarized.

Although India has huge labor resources, unlike the compulsory education system in China, India has been pursuing elite education for a long time, resulting in the polarization of its domestic labor force.

Workers who are usually highly educated are unwilling to work in the manufacturing industry with poor working conditions and low salary.

The uneducated labor force is totally short of basic labor quality, and can not meet the requirements of the minimum junior high school cultural level in the industrial pipeline.

According to a United Nations report, illiteracy in India accounts for 1/3 of the world's illiteracy.

The low level of education also makes the workers lack the discipline required by the manufacturing industry.

Failing to work on time will not work overtime according to the production needs of enterprises, resulting in frequent delays.

In this regard, manufacturers are often helpless and unable to cut down the efficiency of workers.

Apart from finding workers with a certain skill, and because of strict labor law restrictions, enterprises can not reduce workers within the contract period from the referee, and they must apply for government approval.

In order to maintain flexibility, manufacturers often sign temporary agreements with workers, who are highly mobile and difficult to upgrade their skills.

This has also become a vicious circle that restricts the long-term development of enterprises and India's manufacturing industry.