Is China killing Indian manufacturing sector?

Do you really think we require, China to assist us on this.

We have more than enough indigenous power to SELF DESTRUCT. so why seek external help.

We have already empowered them to take this lead faking responsibility and they are rather quick on the job...After all lack of responsibility travels from top here alone.

Good news for those who fears Dragon.The UNIDO has recently released report informing that India stands 2nd in manufacturing competitiveness and will narrow the gap over the next few years.India;s rich pool of scientists,researchers and engineers as well as its large,well-educated English speaking workforce and democratic regime make it an attractive destination for manufacturers.

its a competitive market for all product. we have to find other ways to increase our capability

A similar question is in my mind ( from another angle ) : Is India killing the world IT/ BPO / ITES sectors ? I

We know the reason that cost of manpower in India in IT/ BPO is less and the knowledge workers  hereare more smart than their counterparts in the globe. Thus "costings & pricings" know no boundaries in this globalized world .

And ... how costs may be minimized in Manufacturing field ... so so many things are to be done in India both from the Cos., the labour force and the Govt.

List is long. But, we are to start now.

We ourselves have so many times said, buy Sasta and killed our own manufacturing sector, nowadays there is no emphasis on quality only on the amount you are paying. We are killing ourselves, we don't need the Chinese to do it. 

offcourse they will not because they have a techonlology

but the dont have that much enough quality to impress the indian market

and i think they concerntrate only at the quantity but not the quality

one more thing is that they made the parts at very cheep rates so we cant say anything abt it

but surely i feel that they will not i am not saying they cant

How we can blame others for our lackings. China has conquered the world market becuase of their proper planning and determination. Can we see any kind of determination and dedication to set a Indian trend globally from our governing body. China reached in that level because of  their governments policies and its apt inplementation. They have proven the strength of their surplus population. 

china is not at all killing or disturbing the indian manufacturing sector......

because output of china is of china and output of india is of india, but there is no such direct relation of indian manufacturing with the chinese manufacturing.......

indian manufacturing industry not keep the manufacturing time line and words. evert time we want to extend the time line . so the project will be delay.

The customs duty and freight on Chinese goods add up more than 40% of the FOB cost and if in spite of this they are cheaper then we have to ask our selves why are we Indians are so expensive.

As long as they are able to give quality products at a competitive price it should be taken as a a challenge and we Indians should strive at producing goods cheaper than the Chinese.  If we are not able to do so then the fault is ours and we need to introspect........

we need to think again and formulate stratagies to be successful. Mainly our companies want to earn overnight. our pricing polacy, production planing and proocess planing has to change. They go n producing for the entire world. they don't limit their production. the parity between the lowest and highset salaries is very small - about 4 times, in India you can't imagine. our overheads are very high. we have to learn to live with mass production and global marketing stratagies. We value our paper degrees, they value knowledge. I have visited several small, medium and large industries and discussed their costing and statagies. we are always depending on governament, they depend on their own capabilities. thee are the main differences.

Let us hope we can change our priorities and stratagies to compete with china. Globally the rawmaterial cost is same only differnce is production cost which has to be looked in to.  

I agree with Vickram we should change our outlook why not associate with them & work together it will help bussiness in both the countries.Rather than seeing it as a threat it can be made an opportunity to utilize the resources  of both the countries.

These are not Chinese companies killing us - rather we are killing ourselves! Agreed that Chinese goods may be of sub standard quality, but they are 'Sasta' - and that is where they are taking away businesses from Indian manufacturers.

May be their quality is bad but how many Indian industries are really trying to beat the competition? As well as how many Indian buyers are really quality conscious? I have learnt from a company in Canada I was associated in the past that they don’t buy Chinese material owing to its poor quality standards. Unless our people and government show such alertness – our business houses will be dying against Chinese competition.!

These are not Chinese companies killing us - rather we are killing ourselves! Agreed that Chinese goods may be of sub standard quality, but they are 'Sasta' - and that is where they are taking away businesses from Indian manufacturers.

May be their quality is bad but how many Indian industries are really trying to beat the competition? As well as how many Indian buyers are really quality conscious? I have learnt from a company in Canada I was associated in the past that they don’t buy Chinese material owing to its poor quality standards. Unless our people and government show such alertness – our business houses will be dying against Chinese competition.!

One or two years back, there were lots of talk about Chinese bikes costing around Rs10,000/- Some people even opened a shop and started booking. But none of the bikes at that rate came to India. Some time back I was talking to a machine tool manufacturer who makes CNC machines. Similar machines were imported from China at 25% cost. But the Chinese will not send an engineer to commission the machine. One or two machines might have come to India but nothing more. Chinese products may be an irritating issue for a short duration. But it can never  pose a threat to our industry. But Chinese are putting lot of barriers for Indian goods for which India is taking required measures.

I don't agree with this argument .In fact we should be thankful to China .If we look back a few years , Indian Manufacturing Industry didn't have a very good reputation as a Quality manufacturer .The onslought of cheap Chinese imports , has served as a rude awakening shock to us .This has forced us to become more competitive in terms of Quality and Cost .No of Deming award wining Indian Industry in recent times is an indicator of the same .Today we are being acknowledged worldwide as a Quality producer .

In today's world , if we have to survive , it can be by being more competitive and not by protection !!!!

I

I am not familiar with India situation, but I think China is not killing any country manufacturing. It is true that Chinese manufacturing industry has grown a lot recently (and it is still growing)but it has great limitations, At the end, this is a long run and only the country with the best infrastructure will survive, not just the biggest one.

The government levies is what is making the products costlier is what I believe in!!

I have enough confidence in our manufacturers understanding that they need a better CP to ensure a quality product going into the market. But the levies of taxes kills the end pricing.

First , can anyone give more information on this :

1.  Is the Indian manufacturing sector pricing itself out of the market because of government taxes , or is its cost of production high ?

2.  We have Chinese toys available in India from Chinese manufacturers , as well as MNCs who have started manufacturing facilities in China. Does this mean China is offering incentives to produce locally or is the production cost inherently lower in China due to cheaper labour , cheaper power etc. ?

What prevents Indian companies from emulating their American counterparts , and set up shop in China ?

The dependence on China for technologies which are locally available is a sad comment on Indian calibre and efficiency , and not just governmental restrictions. I may be wrong , but can someone give data to the contrary ?

Well, Indeed China is giving a stiff competition to Indian manufacturing sector. But it doesn't mean it is killing the sector. Every country's one sector is competition to another country in the same field. From past few years, India is slowly becoming self dependant in its manufacturing sector. Though the speed is slow, but we are becoming self dependant in this sector and very soon this threat from China's side will also go off.