Following news appeared today :
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.
================================================
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
====================
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 ?
=========================================================
21 Oct 2019
Rsvp :
hcp@RcruitGuru.com
