A cake of Industries

A cake has been left china which has at least 1 k slices which is going to reset the Economy of the world.

It was being prepared for leaving after the trade war between china and us. It started with the tariff slap of US on 6th day of July 2018. It got speed after retaliation of china with increase of tariff on 130 products of US where china experienced reduction of annual foreign investment. (25% in 2009 to 15% in 2018)

But after the spread of COVID-19 where China is being taken as responsible country for outbreak due to irresponsible behavior with the mismanagement of WHO gave the exit pass to this cake. Only 5-10% want to leave to western world about 25% want new stay in somewhere South-East world only.
(Ref: A research of American chambers of commerce)


Cake is delicious so everyone wants to eat it. Even at least everyone tries.
So here in Eastern world Vietnam, Thailand, South Korea, Taiwan, Philippines, Malaysia, Cambodia, Mongolia, Bangladesh, India, Srilanka, Pakistan, Indonesia, Singapore, Japan etc are trying to have maximum slices.
After COVID-19, it seems, they do not want to make another factory of world like they had done in china. so they would spread in numerous places.

Rabobank Published a study on this where it discussed, how can country be selected. It provided four attributed and compare all these countries on these attributes as they are shifting with whole structure and are doing huge investment which can be 10-50 billion dollar.so Attributes comparison especially with India are

• Export- these companies will find the same export system as they had in china like if a approaching country has good export system for textile, textile slice of cake would join this country and so on.
  Here, Vietnam, Thailand, Korea, Taiwan, Philippines and Malaysia are leading
• Cost labor- India has cheap labor in compare to china but still Mongolia, Bangladesh, Srilanka and Cambodia are in those who have cheap labor in compare to India.
• Ease of Doing business- India has 63 ranks among 190 countries and also in top 10 as a country who has improved rank in last three consecutive years.
  but we should know these rankings are on the basis of 2-3 town. If we consider whole country then Singapore, Thailand, South Korea, Taiwan and Malaysia are doing well
• Regulator (Transparency)- Here India is doing well as transparency in RBI is extremely fine in compare to other competent countries. Other countries are also reforming their regulatory system even they are improving.

Thing which effects most India is Labor Laws which is strict in compare to many countries one of them is "hire & fire policy" which is soft in china so countries were choosing china over India. In last some years, we increased Input duty due to which India has less competition.

but we should know companies want to be in any country for export, not for consumption. As India is consuming even after the companies have base in china. To have base on the base of consumption is now a old trend which was being practiced in 2010.
Now there are finding a place where they can import and export easily so the attitude of conservative economy should be left. 

India has around 129 rank in 186 countries in Economic freedom. 

We also observe where government interfere, production becomes reduce.

India seems in dilemma at one hand we want foreign investment as we are approaching to companies i.e. cake of industries and on other hand we are looking Chinese products as suspicious.
Swadeshi Jagran manch is also campaigning against foreign products. We should correct our definition of self reliant. still we use "produce according to our needs" but there should be "produce more and export, earn foreign currency. Import cheap raw material from the entire world then again export extra production"