The Art ( and Science ) of Wooing

Following news appeared today :

Will design blueprint to woo MNCs looking beyond China: Sitharaman 

Highlights :

“I will go back and design in some way whereby I will identify those multinational corporations, American, European or British origin, who are moving out of China or who probably are even contemplating.

I will make a blueprint with which I will approach them and put forward to them as to why India is a far more preferable destination," Sitharaman told reporters in Washington after completing her engagements at the IMF-World Bank annual meeting.

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One does not have to be a genius to conclude that Multinationals are only interested in making profits – huge profits

As a corollary, they would set up shop and manufacture their products in a location , where they can do so at the lowest possible “ cost “

Those costs have following Industrial Inputs :

MANPOWER

RAW MATERIALS / COMPONENTS AVAILABILITY

FINANCE / BANK INTEREST RATES

LAND / LOCATION ( of manufacturing unit )

INDUSTRIAL  POLICY ( Central and State Governments )

MARKET

TECHNOLOGY

TAXATION

INFRASTRUCTURE

COMPETITION

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Madam Sitharamanji,

Now, it is just impossible to come up with a BLUEPRINT, that will overnight make India,

“ A LOW COST ECONOMY “

But, it is certainly possible to gradually and steadfastly, move in that direction by continuously comparing India with what other countries are doing to woo foreign companies

Now , Industrialists / Businessmen , all over the World , will continue to compare the INDUSTRIAL INPUTS existing in their own country with the following BENCHMARKS :

[ Following data is some 3 years old ]

#   Most Business Friendly ................................... Ireland

#   Lowest Corporate Tax...................................... Kuwait ( 0 % )

#   Lowest Hourly Wages ( PPP basis ).................... Bangladesh ( $ 0.25/hr )

#   Highest Working Hours.................................... Mexico ( 42.5 / week )

#   Least Govt mandated paid holidays................... USA     ( Nil )

#   Highest Manpower Productivity......................... Switzerland

#   Lowest Bank Interest Rates.............................  Denmark ( 0.05 % )

#   Demographic Advantage of a Young Population....India 

#   Ease of Introducing unpopular reforms..............  China ( Dictatorship )

 


There is , quite likely , some parameter on which a Country can claim to have distinct advantage over all the other countries

It could have something to do with its Geographical situation / Historical evolution / Political System / Legal Frame-work / Societal Norms etc

It is not possible to replicate advantages of all of these benchmark countries , into any one single country

At the same time , it is very important to keep studying these Benchmarks and ask ourselves :

"  How have these countries managed to reach , where they are ?

   What REFORMS can we introduce in our own system to catch-up ?

   Are there any parameters in which we ourselves are a Benchmark to others ?

   What should we do so that we do not slip-up where we are ourselves , some

   kind of a Benchmark , to the rest of the World ? 

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21  Oct  2019

Rsvp :  hcp@RcruitGuru.com