China’s Powerful Economy

One of the ideas I suggested in an earlier article was to boycott Chinese products. However before launching such a campaign let us first analyse how China is able to perform so tremendously in each and every sector: agriculture, construction and manufacturing and service sectors.  China and India have almost a similar territorial size, resources and population. Obviously we are bound to think that the economic prospects of both countries will be similar too. Why then is the reality different? 

BRAIN DRAIN

The major factor I would like to tether to this alarming lag is the amount of brain drain from India. Almost 85% of the educated intelligentsia seek to make out a living in western countries rather than in India. Most of them being scientists, researchers, doctors, engineers. The glaring fact that they are offered better facilities and salaries lead them to greener pastures. A very meagre percentage of youth pursuing higher education return back. The rest of the major strata of outgoing youth prefer to find an abode abroad. This behavioural pattern of the educated community can be attributed to the lack of better and sustainable living conditions, encouragement and incentives from the govt. 

In China’s case it follows the exact opposite strategy. The provincial governments of China exhort its people to return and settle back in China. This helps the nation progress in all spheres through their scientific and technical prowess. China also provides better incentives, veritable living conditions, income support and subsidies to foster entrepreneurship. But this is not the same for uneducated labour, they aren’t treated the same way. China stands third after USA and UK in terms of attracting international students. 

This doesn’t mean that India is at the rock bottom but it should focus on upgrading its institutions infrastructure, providing scholarships and helping them find jobs that is equivalent to what they could find and get paid in other countries. It is the need of the hour for India to take into cognizance that it is only through wooing top talent and help them in innovation in STEM can it realize its economic ambitions. 

WORK HOURS

Labour is a nation’s most abundant resource. In India as per the Factories act of 1948, no labour shall be coerced or even allowed to work more than 9 hours a day. This means that even though India possess tremendous chunk of skilled labour it cannot use such workforce to its fullest potential. This is good for India in a humanitarian point of view but we dally in the economic race. 

On the other hand, there are no such labour laws in China. Therefore an average Chinese puts 12-14 hours of work a day. Though this trend in China is portrayed as serfdom it helps China to export its products to global market at cheaper prices thus boosting the economy. There is no denying, the fact that we agitate and launch trade strikes under the aegis of trade unions for further reduced work hours and increased pay. Indians should question themselves if this is the right attitude? Are we ready to work for longer hours without demanding the state to provide extra incentives? Are we ready to help the nation’s economy grow with such commitment? 

RESOURCE USAGE

China is inured to use its resources like there is no tomorrow. The indigenous heavy industries and machinery demand high amounts of raw materials. This is one of the reasons for the dwindling resources which poses a serious threat to the environment as well. This may seem optimal to suffice the current times. However in the long race, chances are high that China will fail due to the burgeoning pollution and unchecked usage of resources. Here resources are not only material entity but humans too. China spends heavily on upskilling its labour with the intention of turning the mere human entity into human resource. This thus brings a great amount of hitherto untapped amateur labour into China’s skilled workforce. However usage of resources in inhuman ways is not something to adapt.  

INDUSTRY

It is conspicuous that China is the manufacturing hub of the world. Most of the heavy industries are located inside china. China accounts for large amounts of exports involving heavy minerals, finished goods, machinery. Albeit India recently crossed China to become the greatest exporter of steel which is the basic raw material for heavy industries. But it is unable to earn the same exchange as China. This is majorly because China has been exporting finished value added goods while India has been exporting crude steel and importing finished heavy machinery. The initiative of Make-in-India has however given a stimulus to indigenous heavy industry. However in the long run India should encourage heavy industries by providing capital support and incentives for it to flourish the same way as the service industry.

It is evident that, India with such trade imbalance may not be able to completely boycott Chinese goods and this may only lead to chaos. 

SECULARISM

India’s social and secular character is an added advantage in comparison to China’s communism and atheism. I wouldn’t hesitate to draw criticism by asserting that India in the name of secularism is composed wholly of communalists who lead masses on communal lines and communal gains citing religion. After independence India was plunged into communal riots. China has been successful in eliminating communalism while India is struggling to combat radical communal forces. India given its secular character and socialist ideologies if put on the right track eliminating such hostile forces will be able to use and protect state’s resources and use such to the development of nation.

FOREIGN CAPITAL

 “Where foreign capital has sunk in a country, the administration at once becomes the concern of the bondholders”. China is investing billions of dollars encompassing the world through its Belt and Road Initiative, thus projecting its lust for territories across the globe. China does not allow free market and amicable tariff policies. It maintains a protectionist attitude unlike India.

Foreign capital suppresses indigenous capital and makes future growth difficult. China never hesitates to take any means to mitigate foreign capital. India being a sink for foreign capital should scrupulously frame monetary policies, monitor and regulate the FDIs. 

PRELUDE

India has extraordinary youth power and skilled labour. India’s economic growth has been stable over the years unlike the fluctuating economy of China. Focusing on machine making sector, development of indigenous science and technology, sophisticated infrastructure and proper resource management India can overcome China in near time.

As a prelude India will be able to compete with China economically by encouraging entrepreneurship, easing business setup procedures, providing capital support to large scale industries and MSME’s, investing in upskilling labour, checking and containing corruption, supporting secularism, and promoting education! 

India as a nation must strive to resolve its inner conflicts : communal violence, corruption, lack of leadership and accountability; and set its home in order first. Everything is possible if we think together as a country for the country. Hum chale tho hindusthan chale.