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A lot of people have talked about the weakness in India, but have forgotten the strengths. Outside China, India is one of the largest single market The long t

A lot of people have talked about the weakness in India, but have forgotten the strengths. Outside China, India is one of the largest single market The long term growth rate is expected to be good There is a countrywide GST (similar to VAT) Uber, Amazon, Google are relatively free to be in the market, this is more liberal than in many EU countries Add to that the younger population, surplus labour, tightening global immigration More over India is a new unwritten partner with US, Japan, Taiwan, South Korea - there is plenty of give and take. India has concluded multi billion dollar defence deals with the US. India has made a huge push in infrastructure investments, and building several industrial corridors India has a strategic location in the ocean India is the only big power in the region that can kick the CCP's ass if it has to, and the Chinese have been testing it out several times Since the coronavirus, the state of UP (200 million population) has relaxed all labour laws that was preventing employment generation and investment, has aggregated government land for new industrial setup, twice the size of Luxembourg.

komocsi 6y ago
> Outside China, India is one of the largest single market Having a large population (without purchasing power) isn't enough to call a region one of the largest single market in the world. China and India have growing middle class but 95% of their population still have no savings, these people only spend on food and household. The largest single market in the world is the European Economic Area, the second largest is the United States (+ Canada and Mexico), all other markets are incomparable from these two developed markets because the difference is so large.
- naruvimama 6y ago
  You are very right. It is true from the value point of view and for now. There are two other actions at play here 1. When you are buying a new car or a house in the developed world it is usually replacing an existing car or house, perhaps with a marginal increase in efficiency. In the case of India you are adding an asset which adds close to 100% value. This also applies to roads, bridges and factories. 2. The number of units sold has a significant value to the company, that is part of the success behind China. That adds economies of scale as well as a ground to innovate for the rest of the world, which is incidentally mostly price sensitive. An iPhone costs more than Rs. 100K, typical budget Android phones are around 5K that is 20x. The investments that foxconn is making is pretty small, includes equipment moved from China to diversify.
- learc83 6y ago
  Calling the European Economic Area a single market is also a stretch. Sure from a regulatory point of view it is, but practically it’s not. Cultural and language differences between countries are often a larger barrier to your product than tariffs and legal hurdles.
- manquer 6y ago
  > China and India have growing middle class but 95% of their population still have no savings You have A source on this ? What OP meant is that these are largest growing markets today and probably in the near future . people are generally interested where the growth is coming from more than where the existing spends are, especially if you are a more traditional business and not planning on disruption of a current market as a business model.
rbar 6y ago
> Since the coronavirus, the state of UP (200 million population) has relaxed all labour laws that was preventing employment generation and investment, has aggregated government land for new industrial setup, twice the size of Luxembourg. Removing laws that protected the employees will only lead to exploitation. Is this the only way to entice investors? Factories with suicide prevention nets is the last thing India needs. https://theprint.in/india/governance/up-suspends-labour-laws-what-stays-what-goes-and-why-it-is-a-step-in-right-direction/417186/ https://theprint.in/india/governance/up-suspends-labour-laws...
- sneak 6y ago
  FWIW the Foxconn factories in China that had the suicide nets had a lower incidence of suicide amongst the population working at the factory as the general population in the province in which the factory was located, even without the nets installed.
- naruvimama 6y ago
  There has always been a great support for strong labour laws, whether it was helping the labourers seems to be forgotten. It was more of a tool for bureaucracy to interfere in the private sector and of course bribery. For instance factories are required by law to provide spittoons, they need to be updated. And the presence of these laws that force a large number of business from employing full time contracted employees. Perhaps upwards of 70% workers would benefit greatly with simplified and reasonable labour laws. Even well meaning employers are hindered from providing proper contracts in the past.
- nine_zeros 6y ago
  In India, laws of supervision/control == means to acquire bribes. The more India liberalizes, the easier it is for businesses to operate without the constant threat of corrupt government or police. By removing old foolish labor laws, the state can build newer laws from scratch. Also more economic activity means more jobs. So even if people tend to lose or be unhappy at current jobs, they can find something else.
xster 6y ago
> the Chinese have been testing it out several times Are you referencing something specific?
- AareyBaba 6y ago
  He is referencing Dokhlam https://en.wikipedia.org/wiki/2017_China%E2%80%93India_border_standoff https://en.wikipedia.org/wiki/2017_China%E2%80%93India_borde... and the current Galwan Valley standoff https://en.wikipedia.org/wiki/2020_China%E2%80%93India_skirmishes https://en.wikipedia.org/wiki/2020_China%E2%80%93India_skirm....
  - xster 6y ago
    How does the Chinese test the Indians by not crossing the LAC https://www.indiatoday.in/programme/news-today/video/pm-narendra-modi-denies-chinese-crossed-lac-what-does-it-mean-1690799-2020-06-19 https://www.indiatoday.in/programme/news-today/video/pm-nare... specifically?
    - deleted 6y ago
      [deleted]
    - naruvimama 6y ago
      The LAC is a buffer zone where the troops patrol but do not setup camps or bring in heavy artillery. The Chinese setup camps, brought in heavy artillery and diverted/dammed the river in the LAC. This is the region that they have been patrolling, so it is still the buffer zone.
      - xster 6y ago
        Do you have a source?
AareyBaba 6y ago
<India is the only big power in the region that can kick the CCP's ass if it has to> Let's be realistic about India's military power. In 1999, India lost 500 men when they were ordered to charge up the Kargil mountains WWII style even though they had complete air superiority and were backed by a Bofors artillery barrage all while facing an enemy whose long supply lines consisted of men and donkeys hauling ammunition and food for miles up steep mountain sides.
- naruvimama 6y ago
  What I meant is that it is the only one in the region big enough to stand up to bullying and sustain a short term war. The Chinese withdrew from the recent conflicts only because they knew that India wouldn't back down and the Chinese would get a heavy bashing. It would of course not have happened without the support of the Indian allies on the east coast of China and the US. In Kargil Pakistani troops had captured all the strategic high locations, and fortified bunkers. There are some answers here, https://qr.ae/pNKfPI https://qr.ae/pNKfPI

komocsi 6y ago

> Outside China, India is one of the largest single market Having a large population (without purchasing power) isn't enough to call a region one of the largest single market in the world. China and India have growing middle class but 95% of their population still have no savings, these people only spend on food and household. The largest single market in the world is the European Economic Area, the second largest is the United States (+ Canada and Mexico), all other markets are incomparable from these two developed markets because the difference is so large.

naruvimama 6y ago
You are very right. It is true from the value point of view and for now. There are two other actions at play here 1. When you are buying a new car or a house in the developed world it is usually replacing an existing car or house, perhaps with a marginal increase in efficiency. In the case of India you are adding an asset which adds close to 100% value. This also applies to roads, bridges and factories. 2. The number of units sold has a significant value to the company, that is part of the success behind China. That adds economies of scale as well as a ground to innovate for the rest of the world, which is incidentally mostly price sensitive. An iPhone costs more than Rs. 100K, typical budget Android phones are around 5K that is 20x. The investments that foxconn is making is pretty small, includes equipment moved from China to diversify.
learc83 6y ago
Calling the European Economic Area a single market is also a stretch. Sure from a regulatory point of view it is, but practically it’s not. Cultural and language differences between countries are often a larger barrier to your product than tariffs and legal hurdles.
manquer 6y ago
> China and India have growing middle class but 95% of their population still have no savings You have A source on this ? What OP meant is that these are largest growing markets today and probably in the near future . people are generally interested where the growth is coming from more than where the existing spends are, especially if you are a more traditional business and not planning on disruption of a current market as a business model.

rbar 6y ago

> Since the coronavirus, the state of UP (200 million population) has relaxed all labour laws that was preventing employment generation and investment, has aggregated government land for new industrial setup, twice the size of Luxembourg. Removing laws that protected the employees will only lead to exploitation. Is this the only way to entice investors? Factories with suicide prevention nets is the last thing India needs. https://theprint.in/india/governance/up-suspends-labour-laws-what-stays-what-goes-and-why-it-is-a-step-in-right-direction/417186/ https://theprint.in/india/governance/up-suspends-labour-laws...

sneak 6y ago
FWIW the Foxconn factories in China that had the suicide nets had a lower incidence of suicide amongst the population working at the factory as the general population in the province in which the factory was located, even without the nets installed.
naruvimama 6y ago
There has always been a great support for strong labour laws, whether it was helping the labourers seems to be forgotten. It was more of a tool for bureaucracy to interfere in the private sector and of course bribery. For instance factories are required by law to provide spittoons, they need to be updated. And the presence of these laws that force a large number of business from employing full time contracted employees. Perhaps upwards of 70% workers would benefit greatly with simplified and reasonable labour laws. Even well meaning employers are hindered from providing proper contracts in the past.
nine_zeros 6y ago
In India, laws of supervision/control == means to acquire bribes. The more India liberalizes, the easier it is for businesses to operate without the constant threat of corrupt government or police. By removing old foolish labor laws, the state can build newer laws from scratch. Also more economic activity means more jobs. So even if people tend to lose or be unhappy at current jobs, they can find something else.

xster 6y ago

> the Chinese have been testing it out several times Are you referencing something specific?

AareyBaba 6y ago
He is referencing Dokhlam https://en.wikipedia.org/wiki/2017_China%E2%80%93India_border_standoff https://en.wikipedia.org/wiki/2017_China%E2%80%93India_borde... and the current Galwan Valley standoff https://en.wikipedia.org/wiki/2020_China%E2%80%93India_skirmishes https://en.wikipedia.org/wiki/2020_China%E2%80%93India_skirm....
- xster 6y ago
  How does the Chinese test the Indians by not crossing the LAC https://www.indiatoday.in/programme/news-today/video/pm-narendra-modi-denies-chinese-crossed-lac-what-does-it-mean-1690799-2020-06-19 https://www.indiatoday.in/programme/news-today/video/pm-nare... specifically?
  - deleted 6y ago
    [deleted]
  - naruvimama 6y ago
    The LAC is a buffer zone where the troops patrol but do not setup camps or bring in heavy artillery. The Chinese setup camps, brought in heavy artillery and diverted/dammed the river in the LAC. This is the region that they have been patrolling, so it is still the buffer zone.
    - xster 6y ago
      Do you have a source?

AareyBaba 6y ago

<India is the only big power in the region that can kick the CCP's ass if it has to> Let's be realistic about India's military power. In 1999, India lost 500 men when they were ordered to charge up the Kargil mountains WWII style even though they had complete air superiority and were backed by a Bofors artillery barrage all while facing an enemy whose long supply lines consisted of men and donkeys hauling ammunition and food for miles up steep mountain sides.

naruvimama 6y ago
What I meant is that it is the only one in the region big enough to stand up to bullying and sustain a short term war. The Chinese withdrew from the recent conflicts only because they knew that India wouldn't back down and the Chinese would get a heavy bashing. It would of course not have happened without the support of the Indian allies on the east coast of China and the US. In Kargil Pakistani troops had captured all the strategic high locations, and fortified bunkers. There are some answers here, https://qr.ae/pNKfPI https://qr.ae/pNKfPI