About 200 US companies seeking to move manufacturing base from China to India: USISPF

[vembuv]

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They say that every cloud has a silver lining..

It is going to be a big opportunity for India.. we should strive to bring major Brands to India.

It may prove a major boost for the 'MAKE IN INDIA' project.

About 200 US companies seeking to move manufacturing base from China to India: USISPF

About 200 American companies are seeking to move their manufacturing base from China to India post the general elections, a top US-based advocacy group has said, observing that there is a fantastic opportunity with firms looking at alternatives to the Communist giant.

The US-India Strategic and Partnership Forum's (USISPF) President Mukesh Aghi said that the companies are talking to them about how to set up an alternative to China by investing in India.

Aghi said that USISPF's recommendation to the new government would be to accelerate the reforms and bring transparency in the decision-making process.

“I think that's critical. We would advise to bring more transparency in the process and to make it more consultative because in the last 12 to ..

Read more at:

About 200 US companies seeking to move manufacturing base from China to India: USISPF

The firms have been making queries on how to set up an alternative to China by investing in India.

economictimes.indiatimes.com

 

[tbs]

hi

somebody's lose is somebody's gain....

 

[prasad1]

Not si fast, talk is cheap.

Why manufacturers are not rushing into India

Out of 56 companies that relocated their production out of China between April 2018 and August 2019, only three went to India and two to Indonesia. This was the finding of a study by Nomura, a Japanese financial group.

Out of the 56 firms, 26 relocated to Vietnam, 11 went to Taiwan and eight to Thailand.

As the ongoing trade dispute between China and the US continues to escalate, tariffs are making exports from China more and more expensive for US importers. Many firms have been doing their sums and looking for new locations to re-site their manufacturing operations.

For many companies, the plan to relocate has already existed for a while. Costs in China were already trending up for some time. However, many hesitated because of the hassle and uncertainty of relocation. What tipped the scales in the last year or so was the additional US tariffs levied on Chinese made goods.
Re-locating manufacturing facilities is not a trivial matter. Besides, overcoming the high initial set-up costs, other factors to consider are infrastructure, communications and connectivity. Having good and cost-effective warehousing, transportation and other logistical support is essential. That is just the start. There is also the challenge of finding the right skilled manpower and thereafter putting the new workers through training specific to their production process. Further considerations include governmental support, a favourable tax regime and legal framework, and the ease and speed of starting a business in a new country.

On the surface, India and Indonesia both have the ideal demographics to be global manufacturing powerhouses to rival China which at the moment makes one-fifth of the world's goods. First of all, they have the second and fourth-largest populations in the world with India's population expected to surpass China's by 2030. They also have a relatively young population. United Nations estimates that India has a median age of 30, whereas Indonesia's median age is 31. By comparison, China's median age is 40.
Furthermore, India's labour cost is half that of China's.

So why are India and Indonesia not receiving their fair share of factories relocating from China?

Why manufacturers are not rushing into India

As the ongoing trade dispute between China and the US continues to escalate, tariffs are making exports from China more and more expensive.India and Indonesia both have the ideal demographics to be global manufacturing powerhouses to rival China which at the moment makes 1/5 of the world's goods

www.livemint.com

 

[prasad1]

Although both India and Indonesia's GDP growth rates are high compared with other major global economies, economists generally agree that they are both performing below their full potential with regards to FDI (Foreign Direct Investment) in manufacturing and hence they are both nicknamed "sleeping giants".

FDI is a good indication of external investor confidence in the success of economic reforms and prospects as they are a sign of how willing foreign corporations are willing to commit to long term investments in a country. FDI is necessary for a developing economy to create jobs, absorb excess labour supply and plug financial gaps. But India today pulls in a miserly 0.6 per cent of GDP in manufacturing FDI. Indonesia is a touch better at one per cent.

The most common reason touted by businesses about why they move to a particular location is the ease of doing business. In the Reuters story referred to earlier, a smartphone executive was quoting as saying that in Vietnam, there is a single point of contact, a person who takes care of everything from the government side.

Taking a leaf out of the book that Thailand and Vietnam use to attract FDI, both India and Indonesia need to further liberalise trade, spend more on infrastructure construction, reform land and labour laws and offer tax breaks for foreign investors. Legal reforms, liberation and favourable taxes are necessary for economies to reach their full potential.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

What is heartening for India is that companies like Samsung and Apple are already making some of their mobile phones in India. Apple which has already been manufacturing iPhone components and older models in India expects to start building the newer iPhone XS and SR in India this year. The Samsung factory in Noida is one of its biggest in the world and 30 per cent of what it makes is exported.

Although there is progress, more has to be done if India aims to achieve PM Modi's aim, first declared in 2014, to increase manufacturing share of GDP to 25 per cent by 2025.

The good news is that both countries are aware of this and making moves in the right direction.

In Indonesia, President Widodo is introducing tax incentive for foreign companies setting up manufacturing facilities in the country and making it easier for businesses to obtain a license.

The recent surprise cut in the corporate tax rate have appeased corporations and has helped put India in a new trajectory for growth. However, India needs to do more. For example, provide more tax incentives for investing in the desired type of manufacturing it hopes to attract - like high tech and electronics manufacturing for export. It must also make it easier to import components so that more of the assembly work can be done in India.

Why manufacturers are not rushing into India

As the ongoing trade dispute between China and the US continues to escalate, tariffs are making exports from China more and more expensive.India and Indonesia both have the ideal demographics to be global manufacturing powerhouses to rival China which at the moment makes 1/5 of the world's goods

www.livemint.com

 

[vembuv]

This one is dated: 27th March....the latest by the very same magazine LIVE MINT which supersedes the OLD news.

iPhone makers plan to shift some manufacturing to India, from China

Many gadget makers are seeking alternatives to China-based production

But it unlikely that China will fully give up its place as the world’s electronics workshop anytime soon

Wistron Corp., one of Apple’s manufacturing partners, said this week half its capacity could reside outside China within a year. The declaration underscored how the Asian assemblers that keep the world supplied with iPhones and other gadgets are shifting to a higher gear after the coronavirus showed the folly of staking everything on one country.

The move in production out of China has been underway since the trade war between Washington and Beijing reached its zenith last year. Now, Covid-19 is expediting that. Decisions by companies like Wistron and other Apple Inc. partners including Hon Hai Precision Industry Co., Inventec Corp. and Pegatron Corp., could re-shape tech supply chains.

Taipei-listed Wistron is targeting India -- where it’s already making some iPhones -- along with Vietnam and Mexico, setting aside $1 billion to fund the expansion this year and next. “We understand from a lot of messages from our customers that they believe this is something we have to do," Chairman Simon Lin said on an earnings call. “They’re happy and appreciate that we can continue to make such a move and they will continue to work with us."

iPhone assembler Pegatron is also diversifying manufacturing sites. Chief Executive Officer Liao Syh-jang said Thursday the company hopes to kick-start manufacturing operations in Vietnam in 2021 after setting up a new plant in Indonesia last year, and it’s further looking at India as a location for new facilities. Apple’s main assembly partner for AirPods, Inventec, said Tuesday it’s preparing to establish a unit in Vietnam.

Read more at:

iPhone makers plan to shift some manufacturing to India, from China

Many gadget makers are seeking alternatives to China-based production.But it unlikely that China will fully give up its place as the world’s electronics workshop anytime soon

www.livemint.com

PS: It is reported that Apple had already started manufacturing iPhone 6S, 7 and 8 in 2017 in their Wistron Plant near Bangalore. Since August 2019, they have also been assembling iPhone XR. It’s not much difficult for Apple to expand to other iPhone or maybe even MacBooks and iPads.

Hopefully many will follow suit.......and this is ground reality....

 

[vembuv]

Some prefer to be always out of touch with ground reality. They are happier to be in their own world of ignorance.

This one is dated: February 25th ...and definitely latest.

US manufacturing supply chain can shift from China to India: Report

CII and USIBC on Tuesday launched the “$500 Billion Roadmap,” a report that provides an assessment of current trends in US-India trade and the policy reforms needed to set business ties on a faster growth trajectory.
The trade tension between the United States and China is seen as an opportune time to give a major fillip to India-US trade relationship as many American companies are actively exploring alternative investment destinations to relocate their manufacturing supply chains and India could be a competitive destination, a report has said.

The report by the Confederation of Indian Industry (CII) in association with US India Business Council (USIBC) has listed out interventions in 13 specific areas which, if resolved, will provide a significant thrust to trade between the two countries by turning challenges into opportunities.

Read more at:

US manufacturing supply chain can shift from China to India: Report

CII and USIBC on Tuesday launched the “$500 Billion Roadmap,” a report that provides an assessment of current trends in US-India trade and the policy reforms needed to set business ties on a faster growth trajectory.

www.hindustantimes.com

 

[prasad1]

Mr. Vembuv or whatever your current avatar is.

Some prefer to be always out of touch with ground reality. They are happier to be in their own world of ignorance.

This one is dated: February 25th ...and definitely latest.

That was totally uncalled for. Your current avatar is new, but your style and snide remarks are old and tired.

You or I do not create the news, I report with source what is reported.

Unlike you, I do not take a personal jibe at others for posting. You think there is a race or competition between you and me. I do not have any such desire. I do not know you and hopefully, it will remain the same.
So you do not have to post for me, or you do not have to write a rejoinder to me in your post. I have no interest in knowing you. Just keep your post for the public and in a civil tone.

 

[vembuv]

Mr. Vembuv or whatever your current avatar is.
That was totally uncalled for. Your current avatar is new, but your style and snide remarks are old and tired.
You or I do not create the news, I report with source what is reported.
Unlike you, I do not take a personal jibe at others for posting. You think there is a race or competition between you and me. I do not have any such desire. I do not know you and hopefully, it will remain the same.
So you do not have to post for me, or you do not have to write a rejoinder to me in your post. I have no interest in knowing you. Just keep your post for the public and in a civil tone.

Mr. Prasad

I don't understand what is your problem.

And I don't accept your observations.

I have no business to request you to soften your stance.

I respect the views of other members.

I love to be an active participant.

Anyway, thanks.

 

[rameshjey]

They say that every cloud has a silver lining..

It is going to be a big opportunity for India.. we should strive to bring major Brands to India.

It may prove a major boost for the 'MAKE IN INDIA' project.

About 200 US companies seeking to move manufacturing base from China to India: USISPF

About 200 American companies are seeking to move their manufacturing base from China to India post the general elections, a top US-based advocacy group has said, observing that there is a fantastic opportunity with firms looking at alternatives to the Communist giant.

The US-India Strategic and Partnership Forum's (USISPF) President Mukesh Aghi said that the companies are talking to them about how to set up an alternative to China by investing in India.

Aghi said that USISPF's recommendation to the new government would be to accelerate the reforms and bring transparency in the decision-making process.

“I think that's critical. We would advise to bring more transparency in the process and to make it more consultative because in the last 12 to ..

Read more at:

About 200 US companies seeking to move manufacturing base from China to India: USISPF

The firms have been making queries on how to set up an alternative to China by investing in India.

economictimes.indiatimes.com

This is jingoism at its best. The US companies have taken decades to do process and technology transfer to outsource from China same way as many US companies have outsourced IT from India. It will require lot of efforts for India to scale up to the level of Chinese efficiency. US has tried Vietnam, Bangladesh, Mexico and and have had mixed success. If cost is the factor they would go to these countries (not India). Indian cost is still high.

China, in turn has developed Vietnamese, Bangladeshi manufacturers at end of supply chain to beat deadline and reduce costs.

For yr info Apple has resumed production from China plants. MY brother is a director with VM ware and he interacts with Shanghai, Beijing and Blore/Pune teams. He says that the Chinese teams productivity is extremely high. Even in US, my son who is with Facebook says that individually Chinese are very dedicated and hard working people. My brother believes that China is way ahead in not only IT but in Biosciences and AI. Pl see the no of patents ,today China is pushing hard to overtake US. Where is India? We need a coordinated effort from Industry heads and Govt to break Chinese monopoly. In fact most of our Industries- Pharma, Auto, Toy , Garment depend on China's raw materials. It may happen in a few decades. We should make a beginning. Let us hope for the best

 

[tbs]

This is jingoism at its best. The US companies have taken decades to do process and technology transfer to outsource from China same way as many US companies have outsourced IT from India. It will require lot of efforts for India to scale up to the level of Chinese efficiency. US has tried Vietnam, Bangladesh, Mexico and and have had mixed success. If cost is the factor they would go to these countries (not India). Indian cost is still high.

China, in turn has developed Vietnamese, Bangladeshi manufacturers at end of supply chain to beat deadline and reduce costs.

For yr info Apple has resumed production from China plants. MY brother is a director with VM ware and he interacts with Shanghai, Beijing and Blore/Pune teams. He says that the Chinese teams productivity is extremely high. Even in US, my son who is with Facebook says that individually Chinese are very dedicated and hard working people. My brother believes that China is way ahead in not only IT but in Biosciences and AI. Pl see the no of patents ,today China is pushing hard to overtake US. Where is India? We need a coordinated effort from Industry heads and Govt to break Chinese monopoly. In fact most of our Industries- Pharma, Auto, Toy , Garment depend on China's raw materials. It may happen in a few decades. We should make a beginning. Let us hope for the best

hi

i agreed with u....even american flags are made in china....cheaper cost and quality...i doubt india's

quality in compare with china...now taiwan/vietnam like some countries far better than ours...

im in the US FOR TWO DECADES....USA WILL NOT SURVIVE WITHOUT CHINA...TESLA CAR

COMPANY PRODUCES MANY PARTS/ASSENBLY IN CHINA....now even corona pandemic period..

china exports masks/PPE raw material to USA....even during this hard time....china is exporting ventilators

to europian countries...