Indian Prime Minister Narendra Modi, who took office in 2014, shouted out the slogan ' Made in India ' (making in India), hoping to become a manufacturing powerhouse like mainland China, and to reduce the long-term trade deficit caused by the massive imports from the mainland, but more than 3 years later, India's manufacturing sector does not seem to be making much progress. According to Quartz, statistics show that India's exports to the world in 2016 were $264 billion trillion, far behind the mainland's $2.09 trillion. The amount of bilateral trade with the mainland is 4 times times that of India, which is 6 times times more than the commodity. India is now awash with products from the mainland, including consumer goods and LED bulbs, electronic products and smartphones, and almost all of the Hindu deities that have been imported from the mainland. Perhaps Indians don't care whether the statue is local or foreign, but the implication behind this is that although India's labour average hourly rate is only 0.92 dollars, well below the mainland's average of more than $4 trillion, its manufacturing industry has yet to meet basic needs for people's livelihood. Why does the gap between India and China's manufacturing sector and the resulting trade deficit not shrink, but it seems to continue to expand? Some economists believe that the main blame is on the following seven major factors: first, the size of the economy: manufacturing in all sectors of the continent, the economy is generally much larger than India. But the fixed cost of large scale representative unit production will become lower, so it is more competitive in price. Second, productivity: McKinsey, a multinational consultancy, pointed out in its report that the productivity of Indian manufacturing workers, on average, was only about 4 1 or even 5 per 1 of mainland workers. So while mainland workers are more than 4 times times more than Indian workers, mainland manufacturing can still enjoy a greater competitive advantage than India. Third, corruption: India and China are also ranked 79th in the 2016 Global corruption report, but there is still a difference. The study found that corruption in the mainland is concentrated in the upper echelons and will not affect the day-to-day operation of the plant. But India's corruption is from the bottom up, such as if the need for rapid access to electricity is to be bribed, which in many cases will hinder the operation of the factory. Iv. transport costs: High domestic transport costs have been one of the fatal wounds of Indian manufacturers. For example, the distance between Guangzhou and Mumbai is 5 times times that of Delhi to Bombay, but the cost of unit freight is virtually the same. Five, power supply quality: The cost of electricity consumption in India's manufacturing industry is virtually the same as that in mainland China, with a price of about $0.08 per electricity. But mainland manufacturers enjoy a far better supply stability than their rivals in India. Some Indian factories are still being forced to power off for hours every day, less productive than the mainland. Six, bureaucracy: in India to set up or expand the factory, often have to go through a cumbersome and lengthy statutory application procedures, and in the mainland, the approval of similar applications is much faster than India, in which case, Indian manufacturers naturally have to bear more intangible costs. Seven, government subsidies: the Indian government is not providing subsidies to manufacturers, but not in breadth and depth.
