abhishreshthaa
Abhijeet S
China's lower prices are not just due to cheaper wages - Indian wages are comparable - but to lower taxes, lower cost of capital, higher productivity of workers and shorter delivery time.
• Productivity of Chinese workers can be 10 to 300% higher than those of Indian workers, depending on the product.
• Chinese shipments reach the US less than a month after they leave the factory gate compared to six to 12 weeks for Indian exports. Delays in India are due to bureaucracy in customs, loading and unloading in ports and long transit times.
• China has attracted £216bn in foreign investment (1980-2000) compared with £120bn in India.
• China's manufacturing sector in the 1990s expanded at a rate of 12% per year, double the increase in India.
• Whilst it is true that many Chinese state-owned companies receive loans from state banks at very low interest rates with long repayment periods, about 70% of China's industrial output comes from the private sector, including multinational companies that have prudent cost accounting.
Lower taxes, import duties and raw material costs are important factors but a competitive environment and a higher level of component manufacturers also help.
• Productivity of Chinese workers can be 10 to 300% higher than those of Indian workers, depending on the product.
• Chinese shipments reach the US less than a month after they leave the factory gate compared to six to 12 weeks for Indian exports. Delays in India are due to bureaucracy in customs, loading and unloading in ports and long transit times.
• China has attracted £216bn in foreign investment (1980-2000) compared with £120bn in India.
• China's manufacturing sector in the 1990s expanded at a rate of 12% per year, double the increase in India.
• Whilst it is true that many Chinese state-owned companies receive loans from state banks at very low interest rates with long repayment periods, about 70% of China's industrial output comes from the private sector, including multinational companies that have prudent cost accounting.
Lower taxes, import duties and raw material costs are important factors but a competitive environment and a higher level of component manufacturers also help.