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6.6. PROS OF MAKE IN INDIA CAMPAIGN:
• As Prime Minister Modi emphasized on the development of labour intensive manufacturing sector. So, this campaign will generate a lot of employment opportunities in Manufacturing, number expected to be around 100 million jobs by 2022.
• This campaign will help in achieving objectives of National Manufacturing policy i.e to increase the share of manufacturing sector in GDP from current 15- 16% to 25% till 2022.
• Employment will increase people’s purchasing power which ultimately helps in poverty eradication and expansion of consumer base for companies.
• The model of “look east and link west” policy wills strength the industrial linkages as well as bilateral ties with many countries.
• Export- oriented growth model will improve India’s Balance of Payment and help in accumulating foreign exchange reserves (which is very important given the
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However, FIIs are highly volatile in nature and a sudden exodus of hot money from India can effect a nosedive in the bellwether indices. Make in India will give an unprecedented boost to FDI flows, bringing India back to the global investment radar.
6.7 CONS OF MAKE IN INDIA CAMPAIGN:
• From a theoretical perspective, Make in India will tend violate the theory of comparative advantage. If it is not economically feasible to manufacture a commodity in India, it is best to import the same from a country which enjoys comparative advantage in its production. International trade, after all, is welfare augmenting.
• Reiterating the point made by Dr. Raghuram Rajan, India unlike China, does not have the time advantage as it undertakes a manufacturing spree. The essential question is – Is the world ready for a second China?
• Make in India will lead to an unsustainable focus on export promotion measures. One such measure is artificially undervaluing the rupee. This will have devastating consequences for the import
Moreover, economic interdependence promotes peaceful trade between countries since it is beneficial and avoids war at all cost. For example, “China’s economy is thoroughly integrated in this complex interdependence global economy,” thus it would be suicidal for China to start war (Wong, The Rise of Great Powers, Nov.18). China free trades with the Association of Southeast Asian Nations (ASEAN) and has developed a profitable relationship that led to trade surplus (Kaplan, pg.3). As a result, starting conflicts with the ASEAN will threaten the Chinese economy because it will drastically impact free trade and will cause a downfall in profits. The possibility of war between China and United States is remote because China would rather benefit from resources such as, security, technology, and market that United States provides (Wong, The Rise of Great Powers, Nov.18). Although economic power shifts to China, United States provides security because it has always been the dominant hegemony; therefore, it has a better and powerful economy (Green, pg.34). It is evident that China’s economy is rapidly increasing, but it still has no interest in being the head hegemony and therefore does not challenge United States. That being said, countries choose to avoid conflicts with United States or their trading partners since it will negatively impact their markets and investments.
To sum up, the future trend of the Sino-US relation is to cooperate through competition, which is the “competitive coexistence”. China is growing, which is the reality that the U.S has to accept, and the interdependence between China and the U.S is stronger than ever before both politically and economically. Therefore, just as Robert (2013) pointed out in his article “the explore of a new type of great-power relationship would not only help the most two powerful countries to avoid the Thucydides trap, but also allow the world to become more vibrant and invigorated”. In other words, cooperate bring more benefits to the U.S. rather than compete with the rising China.
Bearing in mind that the threat of China’s dependency on imports of natural resources has the potential to threaten the official ideology of Confucianism, the real threat is to the interests of the state and the Communist Party of China, because the future of the party and stability of the country is dependent on the continued growth of the Chinese economy. Maintaining the flow of raw materials is the main objective of the PRC because without them the economic engine of the China would be at a stand still, which has the potential to be seen by the people of China as a weakness and flaws in the current governing system. China should continue developing trade relations and international connections because the PRC has been remarkably successful in creating a network of countries who will be loyal in business and political reform. China has has a strategic focus on building relations with nations whom America is not keen on. This has also perpetuated the realization the the Chinese system of governance provides a second option to the ‘Western Consensus’, as a viable means for successful economic growth coupled with strict government control. China must operate multilaterally to continue the trajectory of relation and loyalty building in other countries. This will assist china with the key pillar goals of, building a comprehensive national power; advance incrementally in order to consolidate a position of strength, and maintaining stability, and with the objective that China will be in the position to continue imports of raw material to Chinese industry in the event of a sea trade embargo from opposition countries like the United...
At this point in development, China does not feel that it has the resources to be involved in remote...
To achieve full employment, fiscal policy needs to be implemented, which will have the flow on effect of higher aggregate demand due to influenced lower interest rates meaning more consumer spending on goods and services therefore the need for more workers and jobs will become available, and however this can bring a side effect of inflation. Due to
For the past twenty-five years, China has witnessed an overall increase in its domestic growth (Fischler 148). According to the article, “The Rise of China as a Global Power,” by Dr. Rosita Dellios, China “is the world's fourth largest trading nation, rising from 32nd in 1978 to 10th in 1997.” Similarly, China’s GDP is also second to the United States of America, generating 13 percent of the world’s output (Dellios). Since China’s introduction into the World Trade Organization in December 2001, its average tariff dropped from 41 percent in 1992 to 6 percent in 2001, becoming one of the most open economies in the world (Dellios). China is also the world’s fastest developing economy, obtaining an annual growth of 9.5 percent through foreign direct investment, low labor rates, emerging markets, and growth expansion. (Dellios). Therefore, the 21st century has been titled the “Chinese Century”, as China has become the second-largest international economy in the world (Ji-lin 15).
The goal being, to tie Chinese companies and, ultimately, its economy to the international market via countries all along the route – from Central Asia to Europe. China plans to do this through massive infrastructure projects throughout Central and Southeastern Asia, along with Eastern Europe. In effect, this new Sild Road is at the core of China’s blueprint for its financial diplomatic strategy.”
It will offer job opportunities for upcoming generations. There will be increase in national income
Introduction Many countries look to import and export goods or services they produce in their country in order to increase gross domestic product (GDP) or to obtain the product at a cheaper price. The Regional Comprehensive Economic Partnership (RCEP) is a partnership agreement that will expand the free trade region in the major Asian countries and increase the benefits. The Association of Southeast Asian Nations (ASEAN) is the sole carrier of the RCEP, which plans on integrating the “Plus Six”, partners China, Australia, Japan, India, New Zealand and South Korea in order to achieve the expansion of free trade. This free trade agreement plans on bringing together the three largest economies in Asia in hopes of achieving economic activity with China as one of the leaders. It will also create one of the largest trading blocs in the world.
ii. Placed against targets to achieve 65 percent of the international market by 2010, India’s gem and jewellery industry has registered an impressive 21.33 percent growth in exports
The 21st Century has witnessed Asia’s rapid ascent to economic prosperity. As economic gravity shifts from the Western world to the Asian region, the “tyranny of distance [between states, will be] … replaced by the prospects of proximity” in transnational economic, scientific, political, technological, and social develop relationships (Australian Government, 1). Japan and China are the region’s key business exchange partners. Therefore these countries are under obligation to steer the region through the Asian Century by committing to these relationships and as a result create business networks, boost economic performance, and consequently necessitate the adjustment of business processes and resources in order to accommodate each country’s employment relations model (Wiley, Wilkinson, & Young, 2005). Cognizant of the fact that neither Japan nor China has given up on its external (protectionism or parity) adjustment tools, it is posited that they can nonetheless coexist since both “produce different things and in different ways” and as such avoid the cited perilous US and Mexico competition; but due to globalization, the operating environment portends a convergence or divergence of Industrial Relation (ER) strategies between China and Japan (Lipietz, 1997; Zhu & Warner, 2004).
China’s economical strength comes from its international trades as the economy has grown to a rate of 10.3% in 2010. It has become the world’s largest exporter in the global economy. In the area of trade, three major strengths of China are 1) it is the single most important challenge for the European Union (EU) trade policy, 2) China is the second trade partner behind the U.S., and 3) it is the EU’s biggest source of imports by far with the dramatic increase in the EU-China trades over the recent years. The EU exports of goods to China were 113.1 billion Euros and in imports was 281.9 billion Euros in 2010. The service exports were 18 billion Euros and in imports were 13 billion Euros in 2009. China has also established trades with Australia. Recently, the two countries have been cooperating and assisting each other in industries such as agriculture, energy and minerals as they continue their free trade agreements (Jia Qinglin).
Indian leather industry employees 4 million people and has an abundant access to cheap raw material and skilled labour in the domestic market. These are some of the important factors Indian Industry may rely upon to face the competition from International market in near future.
China is one of the main viable candidates as this century’s new world power. Today, it maintains a strong economic stance within the international market, and is expanding at a rapid pace. The United States cannot maintain its position as hegemon for the rest of humanity; just as how ...
Thus, if industrialisation is to be the backbone of the economy, India still has to go a long way to achieve excellence. With the present rise of industries in India, we can say that a more holistic approach is needed to be taken towards an overall industrial development. Foreign and domestic entrepreneurs, big and small, have to be encouraged so that they invest on industrial development in all parts of the country and in all sectors of industries. Once India is successful in doing so, we will be truly able to see “India – the new superpower” within a few decades.