CHINA GROWTH STORY

Writing in Times of India ( 03 June, 2012 ), Subodh Varma provides following 

statistics about the city of Chengdu in China :

Ø  Incentives for attracting Industries from all over the Word

*  Electricity  ………………………..      $  0.13  per Kwh

*  Water  ……………………………..       $  0.70  per Cubic Meter

*  Freight  ( to Europe )……………… $  4.0   per Kg (by Air )

*  Rent ( for Workshops )…….       $   2.9  per Sq Meter

*  Rent ( for Software Park )..      $  8.0  per Sq Meter

*  No of Highways connecting..     8

*  No of International Flights….     129  per  day

*  Wages for Unskilled Worker..    $ 145  per  month

*  Wages for High Skilled Worker..$ 580 per  month

Ø  Outcome

·        207 of the Fortune 500 Companies have facilities in Chengdu

·        Every 2^nd laptop and every 5^th PC in the World ,is running on a chip processed in Chengdu

·        Concentration of heavy precision industries

·        Top Nuclear and Missile Research Centres

Ø  Wage Comparison ( for low skilled new entrant )

·        India  …………………………..  $  90  per  month

·        China  ………………………….. $  145  per  month

·        Japan  ………………………….  $  937  per  month

·        France  ………………………..  $  1734  per  month

·        USA  …………………………….. $  1740  per  month

For policy-makers of both, the Eurozone and India , there are here , a lot of lessons to be learned ! They have lived in denial for too long !

With regards

Hemen  Parekh