I have a lot of friends who own factories who have moved their factories to border towns in Gujarat like Valsad and Sarigram. But this has more to do with them getting a sweet deal from developers in Maharashtra for their land in MH.
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Rajendra Chola
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Lots of challenges involved. Chip manufacturing needs lakhs of litres of fresh waters per day. I recently learnt they can’t even use desalinated water. And associated infrastructure from existing ecosystem. Gujarat has none.
And existing chip design engineers are based in tech triangle in the south plus Noida. How is the company planning to attract resources to an remote area with almost no life?
19B is an bragging amount. No company is going to invest in a single go. If one reads the fine print it would say, they would invest 19B in 15-20 year timeframe. So Anil Agarwal is playing the politics game in the hope, Foxconn would take care of technological side. Foxconn is ruthless. They hired an ailing company in Calgary, Canada where I worked for an year and a half (they bought it before I joined and sold after I left) and sold it in less than 8 years seeing it is not making money in a way it was supposed to. Lots of IF factor involved and I really hope this investment succeeds.
especially one on display panel and it’s associated fabs. They are dominated by the Koreans as we speak.
Bro i too hope it succeeds
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He brings up some further criticisms...all related to the opportunity cost of the subsidies involved:
Assuming all proceeds relatively well....MH may indeed benefit more long term by having the subsidy density located nearby (in GJ) in that it can take advantage of the jobs and ecosystem spread by way of proximity ....but not shoulder effects of that subsidy burden.
@Jackdaws
He brings up some further criticisms...all related to the opportunity cost of the subsidies involved:
Assuming all proceeds relatively well....MH may indeed benefit more long term by having the subsidy density located nearby (in GJ) in that it can take advantage of the jobs and ecosystem spread by way of proximity ....but not shoulder effects of that subsidy burden.
@Jackdaws
Rajendra Chola
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He brings up some further criticisms...all related to the opportunity cost of the subsidies involved:
Assuming all proceeds relatively well....MH may indeed benefit more long term by having the subsidy density located nearby (in GJ) in that it can take advantage of the jobs and ecosystem spread by way of proximity ....but not shoulder effects of that subsidy burden.
@Jackdaws
The cost of subsidies quoted is blowed out of context. GoI has earmarked 10B subsidy fund under PLI for 5 companies. And the PLI amount will
Be only to the amount of money invested till that point in time to a max of 10B. Don’t think Vedanta and Foxconn is stupid enough to pour 19B in 3 years. My guess is they will invest max of 3-5 B for the next 10 years similar to other companies like IGSS etc.
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Smartphone, semiconductor manufacturers shift from China to India
India is fast emerging as a competitive destination for electronics manufacturers exiting China. Read more at straitstimes.com.
NEW DELHI/BENGALURU - India is fast emerging as a competitive destination for electronics manufacturers exiting China, with the world's largest such manufacturer Foxconn entering a US$19.5 billion (S$27.9 billion) joint venture with India's Vedanta Group to make semiconductors in the western state of Gujarat.
While China remains the global hub for electronics production, companies are looking for alternative locations after the country's strict Covid-19 lockdowns disrupted production.
China's political tensions with the United States have also led businesses to adopt a "China Plus One" strategy of diversifying supply chains from Asia's biggest economy alone to countries such as Vietnam, Mexico and India.
Companies like Apple, Samsung and Google are taking small but firm steps towards India, enticed by new incentives for electronics production as well as the massive domestic smartphone market that is the second-largest in the world.
On Wednesday, the government announced that it would fund 50 per cent of the project costs for a range of semiconductor fabrication plants. It also raised the fiscal support for compound semiconductors, packaging and other semiconductor facilities to 50 per cent, from 30 per cent earlier.
This is on top of 2.3 trillion rupees (S$40.4 billion) of initiatives unveiled in December 2021 to position India as a global hub for electronics system design and manufacturing. This includes a 760-billion-rupee push for a semiconductor and display manufacturing ecosystem.
At a recent press conference, Minister of State for Electronics & Technology Rajeev Chandrasekhar told The Sunday Times that in "the post-Covid-19 world of shifting global value chains" for electronics, companies "look for viable, sustainable bases to manufacture products".
"That is exactly what India delivers," he added.
While home to many semiconductor research and development units owned by top global firms, India lacks large-scale semiconductor manufacturing facilities.
It has, however, seen significant growth in the wider electronic products industry, with its domestic production in electronics increasing from US$29 billion in 2014-15 to US$75 billion now.
Conglomerates such as the Reliance and Tata groups are keen to corner a greater share of this growing market as well as export electronic products through joint ventures with foreign partners.
India's vast supply of reasonably cheap labour and its diversified industrial base are also attractive to global companies.
The Vedanta-Foxconn semiconductor and integrated display fabrication plants that will be set up over the next two years in Gujarat's Ahmedabad district will employ 100,000 people. Oil and mining conglomerate Vedanta has a 60 per cent stake in the pact with the Taiwanese electronics giant announced mid-September.
Backed by government incentives, mobile phone production more than doubled in value from April 2021 to March 2022, propelling India to become the world's second-largest manufacturer with a total production worth more than 52.77 billion rupees.
Apple is expanding its iPhone production in India, where Taiwan's Foxconn, Wistron and Pegatron are expected to contract manufacture 5-7 per cent of all iPhones sold globally in 2022.
This is up from India's 3 per cent contribution in 2021 and under 1.5 per cent in 2020. JP Morgan analysts estimate that Apple could expand this to 25 per cent of all iPhones by 2025.
Over 95 per cent of iPhones sold globally are made in China, but Apple has been reducing this since the pandemic.
Foxconn's existing India units in Chennai began making Apple's flagship iPhone 14 this year just six weeks behind China.
Apple analyst Ming Chi Kuo said in a tweet this indicates that production of the latest iPhones in India could start simultaneously by 2023.
Some 11-12 million iPhones are forecast to be exported from India in 2022, up from 7.5 million in 2021. Local-made iPhones will also meet 85 per cent of domestic demand, against just 10-15 per cent in 2021.
India's biggest conglomerate Tata is said to be in talks with Wistron, which entered the country in 2017, to assemble iPhones. Should it bag the deal, it would be the first Indian company to build iPhones.
Google has solicited bids from Indian producers to assemble between 500,000 and a million units of its Pixel smartphone, which is almost entirely made in China now.
Samsung, which is the world's biggest smartphone seller, set up one of its largest factories in Noida, Uttar Pradesh, in 2018 that makes 120 million units a year.
It had shifted its display manufacturing unit from China to Noida in 2021 and shut the last of its smartphone factories in China in 2019.
Chinese smartphone makers, too, have offshored some of their manufacturing to India, where they dominate almost 80 per cent of the market. Xiaomi - the market leader in India - and its rivals Oppo, Vivo and OnePlus assemble a number of their handsets in the country.
Amazon's Fire TV digital media players are produced in Chennai by a Foxconn subsidiary.
India plans to expand domestic electronics manufacturing from US$75 billion now to US$300 billion by 2026. The government also has an ambitious target of ramping up its annual electronics exports from the current US$16 billion to US$120 billion by 2026.
India, however, must compete with more experienced players like Vietnam that exported US$100 billion electronic products in 2021.
Dr Deepak Mishra, director and chief executive of the Indian Council for Research on International Economic Relations (ICRIER), told The Straits Times that Vietnam's success in electronics manufacturing is a reflection of its wider success at industrialising despite global headwinds.
Vietnam had embraced trade liberalisation "with gusto", he said, carrying out domestic reforms through deregulation, lowering the cost of doing business, and investing heavily in people and infrastructure.
The Indian government's strong desire to produce as many vital electronics components domestically as possible continues to hobble manufacturing, which is reliant on the import of cheap components from abroad, especially China.
The country has lagged behind nations such as Vietnam in developing a strong manufacturing base for electronics due to its regulatory red tape, unpredictable policy turns, high cost of production and taxes, poor infrastructure and logistics, as well as a dearth of skilled labour and lack of financial support.
While India's trade policy has been "rather mixed", marked by the signing of free trade agreements while simultaneously increasing in custom duties across a wide range of products, Dr Mishra said the overall results have been positive, with the production and exports of electronics on a steady rise.
Mr Pankaj Mohindroo, chairman of the India Cellular & Electronics Association, said the significant jump in mobile phone manufacturing is a "vindication of things working out well".
But he added that India has to sharpen its future strategy. "It's not the game of squash or a game of tennis - you are playing a game of golf, which is a long haul.
"Chip away at your disabilities, make the environment more inviting, make sure that the global value chains are well settled here and expanding, build Indian global champion companies and the supply chain."
'First globalise, then localise'
An Indian Council for Research on International Economic Relations report released in August suggested India take a leaf out of Vietnam's book and rewire its strategy to boost electronics exports.Simultaneous attempts to export at scale and increase the share of domestic value addition are unlikely to succeed without a competitive domestic ecosystem of ancillary suppliers in India.
The country relies on cheap imports of components, especially from China, but the government's attempts to reduce dependence on its rival as well as increase its revenue by raising import tariffs on these items have curtailed exports of finished electronics goods.
Proposing a "first globalise, then localise" approach, the report suggested the country temporarily suspend requirements that force manufacturers to source components domestically, and remove duties on intermediate items.
It also suggested accelerating economic integration through free trade agreements, to enable electronics manufacturers in India to source the cheapest inputs from anywhere in the world.
Once global scale is achieved, the focus can then shift to encouraging greater use of local inputs, it added.
The research council also recommended that India should immediately start building up an ecosystem of ancillary suppliers through helping with technology transfer and improving the business climate, among other long-term measures.
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How is the logistics infrastucture in India?Smartphone, semiconductor manufacturers shift from China to India
India is fast emerging as a competitive destination for electronics manufacturers exiting China. Read more at straitstimes.com.www.straitstimes.com
NEW DELHI/BENGALURU - India is fast emerging as a competitive destination for electronics manufacturers exiting China, with the world's largest such manufacturer Foxconn entering a US$19.5 billion (S$27.9 billion) joint venture with India's Vedanta Group to make semiconductors in the western state of Gujarat.
While China remains the global hub for electronics production, companies are looking for alternative locations after the country's strict Covid-19 lockdowns disrupted production.
China's political tensions with the United States have also led businesses to adopt a "China Plus One" strategy of diversifying supply chains from Asia's biggest economy alone to countries such as Vietnam, Mexico and India.
Companies like Apple, Samsung and Google are taking small but firm steps towards India, enticed by new incentives for electronics production as well as the massive domestic smartphone market that is the second-largest in the world.
On Wednesday, the government announced that it would fund 50 per cent of the project costs for a range of semiconductor fabrication plants. It also raised the fiscal support for compound semiconductors, packaging and other semiconductor facilities to 50 per cent, from 30 per cent earlier.
This is on top of 2.3 trillion rupees (S$40.4 billion) of initiatives unveiled in December 2021 to position India as a global hub for electronics system design and manufacturing. This includes a 760-billion-rupee push for a semiconductor and display manufacturing ecosystem.
At a recent press conference, Minister of State for Electronics & Technology Rajeev Chandrasekhar told The Sunday Times that in "the post-Covid-19 world of shifting global value chains" for electronics, companies "look for viable, sustainable bases to manufacture products".
"That is exactly what India delivers," he added.
While home to many semiconductor research and development units owned by top global firms, India lacks large-scale semiconductor manufacturing facilities.
It has, however, seen significant growth in the wider electronic products industry, with its domestic production in electronics increasing from US$29 billion in 2014-15 to US$75 billion now.
Conglomerates such as the Reliance and Tata groups are keen to corner a greater share of this growing market as well as export electronic products through joint ventures with foreign partners.
India's vast supply of reasonably cheap labour and its diversified industrial base are also attractive to global companies.
The Vedanta-Foxconn semiconductor and integrated display fabrication plants that will be set up over the next two years in Gujarat's Ahmedabad district will employ 100,000 people. Oil and mining conglomerate Vedanta has a 60 per cent stake in the pact with the Taiwanese electronics giant announced mid-September.
Backed by government incentives, mobile phone production more than doubled in value from April 2021 to March 2022, propelling India to become the world's second-largest manufacturer with a total production worth more than 52.77 billion rupees.
Apple is expanding its iPhone production in India, where Taiwan's Foxconn, Wistron and Pegatron are expected to contract manufacture 5-7 per cent of all iPhones sold globally in 2022.
This is up from India's 3 per cent contribution in 2021 and under 1.5 per cent in 2020. JP Morgan analysts estimate that Apple could expand this to 25 per cent of all iPhones by 2025.
Over 95 per cent of iPhones sold globally are made in China, but Apple has been reducing this since the pandemic.
Foxconn's existing India units in Chennai began making Apple's flagship iPhone 14 this year just six weeks behind China.
Apple analyst Ming Chi Kuo said in a tweet this indicates that production of the latest iPhones in India could start simultaneously by 2023.
Some 11-12 million iPhones are forecast to be exported from India in 2022, up from 7.5 million in 2021. Local-made iPhones will also meet 85 per cent of domestic demand, against just 10-15 per cent in 2021.
India's biggest conglomerate Tata is said to be in talks with Wistron, which entered the country in 2017, to assemble iPhones. Should it bag the deal, it would be the first Indian company to build iPhones.
Google has solicited bids from Indian producers to assemble between 500,000 and a million units of its Pixel smartphone, which is almost entirely made in China now.
Samsung, which is the world's biggest smartphone seller, set up one of its largest factories in Noida, Uttar Pradesh, in 2018 that makes 120 million units a year.
It had shifted its display manufacturing unit from China to Noida in 2021 and shut the last of its smartphone factories in China in 2019.
Chinese smartphone makers, too, have offshored some of their manufacturing to India, where they dominate almost 80 per cent of the market. Xiaomi - the market leader in India - and its rivals Oppo, Vivo and OnePlus assemble a number of their handsets in the country.
Amazon's Fire TV digital media players are produced in Chennai by a Foxconn subsidiary.
India plans to expand domestic electronics manufacturing from US$75 billion now to US$300 billion by 2026. The government also has an ambitious target of ramping up its annual electronics exports from the current US$16 billion to US$120 billion by 2026.
India, however, must compete with more experienced players like Vietnam that exported US$100 billion electronic products in 2021.
Dr Deepak Mishra, director and chief executive of the Indian Council for Research on International Economic Relations (ICRIER), told The Straits Times that Vietnam's success in electronics manufacturing is a reflection of its wider success at industrialising despite global headwinds.
Vietnam had embraced trade liberalisation "with gusto", he said, carrying out domestic reforms through deregulation, lowering the cost of doing business, and investing heavily in people and infrastructure.
The Indian government's strong desire to produce as many vital electronics components domestically as possible continues to hobble manufacturing, which is reliant on the import of cheap components from abroad, especially China.
The country has lagged behind nations such as Vietnam in developing a strong manufacturing base for electronics due to its regulatory red tape, unpredictable policy turns, high cost of production and taxes, poor infrastructure and logistics, as well as a dearth of skilled labour and lack of financial support.
While India's trade policy has been "rather mixed", marked by the signing of free trade agreements while simultaneously increasing in custom duties across a wide range of products, Dr Mishra said the overall results have been positive, with the production and exports of electronics on a steady rise.
Mr Pankaj Mohindroo, chairman of the India Cellular & Electronics Association, said the significant jump in mobile phone manufacturing is a "vindication of things working out well".
But he added that India has to sharpen its future strategy. "It's not the game of squash or a game of tennis - you are playing a game of golf, which is a long haul.
"Chip away at your disabilities, make the environment more inviting, make sure that the global value chains are well settled here and expanding, build Indian global champion companies and the supply chain."
'First globalise, then localise'
An Indian Council for Research on International Economic Relations report released in August suggested India take a leaf out of Vietnam's book and rewire its strategy to boost electronics exports.
Simultaneous attempts to export at scale and increase the share of domestic value addition are unlikely to succeed without a competitive domestic ecosystem of ancillary suppliers in India.
The country relies on cheap imports of components, especially from China, but the government's attempts to reduce dependence on its rival as well as increase its revenue by raising import tariffs on these items have curtailed exports of finished electronics goods.
Proposing a "first globalise, then localise" approach, the report suggested the country temporarily suspend requirements that force manufacturers to source components domestically, and remove duties on intermediate items.
It also suggested accelerating economic integration through free trade agreements, to enable electronics manufacturers in India to source the cheapest inputs from anywhere in the world.
Once global scale is achieved, the focus can then shift to encouraging greater use of local inputs, it added.
The research council also recommended that India should immediately start building up an ecosystem of ancillary suppliers through helping with technology transfer and improving the business climate, among other long-term measures.
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Logistics are better now (than it has been previously) in various cities, ports, industrial zones and larger regions (esp in south + west, coastal areas and also the capital city) and continue to improve there too.... but still a long way to go to having them really reach same way to densely populated areas of north India (which contain a full half of India population or more).
India really is a continent of a country squished into a subcontinental area....but really having high population is same (or even much more) logistical constraint as long distance to build infra (especially in democratic system) as you need to have significant public trust to move people (and their current livelihoods + economic activity esp farming) around to make way for greater good infra etc and the cost to compensate them too.
It has a slightly higher population than the entire Africa (though this will reverse shortly) and sees a similar unequal spread of development like that continent too.
That is the big challenge that faces India in unlocking its full population potentials.
Countries like Vietnam have big advantage naturally on this comparatively speaking as essentially the whole country population is located on coastline already to export and trade etc.
It allows Vietnam to punch above its weight on lot of manufacturing economic sectors and thus it is no surprise that Vietnam is mentioned a number of times in the article. @Viva_vietnamm
The national logistics policy (and creation of a unified logistics interface platform for businesses to use) hopefully will go some way in addressing that this decade (to grow economies of scale in logistics sector) and leverage on reforms already done like GST (though challenges remain on that), unified payment interface (quite big success story so far), dedicated (rail) freight corridor projects, continued highway, road and warehouse expansion etc :
The National Logistics Policy can help India achieve its economic growth vision
By focusing on correcting the multi-modal connectivity mix and digitisation, the policy will help reduce costs in the logistics sector, power the country’s economic growth, and help it achieve its ESG goals
Only when this economy of scale is truly achieved (i.e north indian population has same access to world markets and commerce like counterparts in west+south+capital of country) and more of the labour force becomes activated and globally competitive, can India start to actually attract lot of manufacturing from China for example....rather than nibble away here and there like now (though this is starting to accelerate).
No country-continent of this scale can industrialise by leaving 50%+ of its population behind and largely reliant on agriculture, localised commerce and transient labour.
This decade (and next one) are absolutely the last decades India has to "catch the bus" to a large enough sufficient degree....or be consigned to a pretty bleak future....so fingers crossed.
@Paro @Jackdaws @Zapper @Gessler @Rajendra Chola et al.
Paro
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Logistics greatly improved last 5 years. I see atleast a price drop on 20% from interiors to ports, and competitors have increased too. But the price hike on fuel isn’t helping.Logistics are better now (than it has been previously) in various cities, ports, industrial zones and larger regions (esp in south + west, coastal areas and also the capital city) and continue to improve there too.... but still a long way to go to having them really reach same way to densely populated areas of north India (which contain a full half of India population or more).
India really is a continent of a country squished into a subcontinental area....but really having high population is same (or even much more) logistical constraint as long distance to build infra (especially in democratic system) as you need to have significant public trust to move people (and their current livelihoods + economic activity esp farming) around to make way for greater good infra etc and the cost to compensate them too.
It has a slightly higher population than the entire Africa (though this will reverse shortly) and sees a similar unequal spread of development like that continent too.
That is the big challenge that faces India in unlocking its full population potentials.
Countries like Vietnam have big advantage naturally on this comparatively speaking as essentially the whole country population is located on coastline already to export and trade etc.
It allows Vietnam to punch above its weight on lot of manufacturing economic sectors and thus it is no surprise that Vietnam is mentioned a number of times in the article. @Viva_vietnamm
The national logistics policy (and creation of a unified logistics interface platform for businesses to use) hopefully will go some way in addressing that this decade (to grow economies of scale in logistics sector) and leverage on reforms already done like GST (though challenges remain on that), unified payment interface (quite big success story so far), dedicated (rail) freight corridor projects, continued highway, road and warehouse expansion etc :
The National Logistics Policy can help India achieve its economic growth vision
By focusing on correcting the multi-modal connectivity mix and digitisation, the policy will help reduce costs in the logistics sector, power the country’s economic growth, and help it achieve its ESG goalswww.thehindubusinessline.com
Only when this economy of scale is truly achieved (i.e north indian population has same access to world markets and commerce like counterparts in west+south+capital of country) and more of the labour force becomes activated and globally competitive, can India start to actually attract lot of manufacturing from China for example....rather than nibble away here and there like now (though this is starting to accelerate).
No country-continent of this scale can industrialise by leaving 50%+ of its population behind and largely reliant on agriculture, localised commerce and transient labour.
This decade (and next one) are absolutely the last decades India has to "catch the bus" to a large enough sufficient degree....or be consigned to a pretty bleak future....so fingers crossed.
@Paro @Jackdaws @Zapper @Gessler @Rajendra Chola et al.
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Logistics are better now (than it has been previously) in various cities, ports, industrial zones and larger regions (esp in south + west, coastal areas and also the capital city) and continue to improve there too.... but still a long way to go to having them really reach same way to densely populated areas of north India (which contain a full half of India population or more).
India really is a continent of a country squished into a subcontinental area....but really having high population is same (or even much more) logistical constraint as long distance to build infra (especially in democratic system) as you need to have significant public trust to move people (and their current livelihoods + economic activity esp farming) around to make way for greater good infra etc and the cost to compensate them too.
It has a slightly higher population than the entire Africa (though this will reverse shortly) and sees a similar unequal spread of development like that continent too.
That is the big challenge that faces India in unlocking its full population potentials.
Countries like Vietnam have big advantage naturally on this comparatively speaking as essentially the whole country population is located on coastline already to export and trade etc.
It allows Vietnam to punch above its weight on lot of manufacturing economic sectors and thus it is no surprise that Vietnam is mentioned a number of times in the article. @Viva_vietnamm
The national logistics policy (and creation of a unified logistics interface platform for businesses to use) hopefully will go some way in addressing that this decade (to grow economies of scale in logistics sector) and leverage on reforms already done like GST (though challenges remain on that), unified payment interface (quite big success story so far), dedicated (rail) freight corridor projects, continued highway, road and warehouse expansion etc :
The National Logistics Policy can help India achieve its economic growth vision
By focusing on correcting the multi-modal connectivity mix and digitisation, the policy will help reduce costs in the logistics sector, power the country’s economic growth, and help it achieve its ESG goals
Only when this economy of scale is truly achieved (i.e north indian population has same access to world markets and commerce like counterparts in west+south+capital of country) and more of the labour force becomes activated and globally competitive, can India start to actually attract lot of manufacturing from China for example....rather than nibble away here and there like now (though this is starting to accelerate).
No country-continent of this scale can industrialise by leaving 50%+ of its population behind and largely reliant on agriculture, localised commerce and transient labour.
This decade (and next one) are absolutely the last decades India has to "catch the bus" to a large enough sufficient degree....or be consigned to a pretty bleak future....so fingers crossed.
@Paro @Jackdaws @Zapper @Gessler @Rajendra Chola et al.
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Many high tech companies wanna leave CN now due to trade war, we should try harder to attract more FDI companies , once day, we can replace CN to become smartphone-chip manufacturing hub .Logistics are better now (than it has been previously) in various cities, ports, industrial zones and larger regions (esp in south + west, coastal areas and also the capital city) and continue to improve there too.... but still a long way to go to having them really reach same way to densely populated areas of north India (which contain a full half of India population or more).
India really is a continent of a country squished into a subcontinental area....but really having high population is same (or even much more) logistical constraint as long distance to build infra (especially in democratic system) as you need to have significant public trust to move people (and their current livelihoods + economic activity esp farming) around to make way for greater good infra etc and the cost to compensate them too.
It has a slightly higher population than the entire Africa (though this will reverse shortly) and sees a similar unequal spread of development like that continent too.
That is the big challenge that faces India in unlocking its full population potentials.
Countries like Vietnam have big advantage naturally on this comparatively speaking as essentially the whole country population is located on coastline already to export and trade etc.
It allows Vietnam to punch above its weight on lot of manufacturing economic sectors and thus it is no surprise that Vietnam is mentioned a number of times in the article. @Viva_vietnamm
The national logistics policy (and creation of a unified logistics interface platform for businesses to use) hopefully will go some way in addressing that this decade (to grow economies of scale in logistics sector) and leverage on reforms already done like GST (though challenges remain on that), unified payment interface (quite big success story so far), dedicated (rail) freight corridor projects, continued highway, road and warehouse expansion etc :
The National Logistics Policy can help India achieve its economic growth vision
By focusing on correcting the multi-modal connectivity mix and digitisation, the policy will help reduce costs in the logistics sector, power the country’s economic growth, and help it achieve its ESG goals
Only when this economy of scale is truly achieved (i.e north indian population has same access to world markets and commerce like counterparts in west+south+capital of country) and more of the labour force becomes activated and globally competitive, can India start to actually attract lot of manufacturing from China for example....rather than nibble away here and there like now (though this is starting to accelerate).
No country-continent of this scale can industrialise by leaving 50%+ of its population behind and largely reliant on agriculture, localised commerce and transient labour.
This decade (and next one) are absolutely the last decades India has to "catch the bus" to a large enough sufficient degree....or be consigned to a pretty bleak future....so fingers crossed.
@Paro @Jackdaws @Zapper @Gessler @Rajendra Chola et al.
-------------------
US chip design giant Synopsys to bolster Vietnam activity
By Dat Nguyen August 29, 2022 | 03:27 pm GMT+7
A person installs a central processing unit on a motherboard. Photo by Pixabay
U.S. semiconductor maker Synopsys is set to shift its investment and engineer training to Vietnam as multinationals continue to leave China.
The company, one of the biggest chip design software makers in the world, will train electrical engineers in Vietnam and donate software licenses for a chip design center in the country, Nikkei Asia reported.
Robert Li, Synopsys sales vice president of Taiwan, Southeast Asia and India, said Vietnam could climb the value chain by designing integrated circuits for fridges and air conditioners.
Synopsys has two offices in Ho Chi Minh City and two in Da Nang with more than 400 staffers and plans to add a further 300 to 400.
It is one of many global companies that plan to increase investment in Vietnam, with the other being Apple, Foxconn, Lotte, and Samsung.
Intel has set up its largest assembly and test factory in HCMC with 2,800 employees and an investment of $1.5 billion.
US chip design giant Synopsys to bolster Vietnam activity - VnExpress International
U.S. semiconductor maker Synopsys is set to shift its investment and engineer training to Vietnam as multinationals continue to leave China.
e.vnexpress.net
Huge gap between North and South on various indices.Logistics are better now (than it has been previously) in various cities, ports, industrial zones and larger regions (esp in south + west, coastal areas and also the capital city) and continue to improve there too.... but still a long way to go to having them really reach same way to densely populated areas of north India (which contain a full half of India population or more).
India really is a continent of a country squished into a subcontinental area....but really having high population is same (or even much more) logistical constraint as long distance to build infra (especially in democratic system) as you need to have significant public trust to move people (and their current livelihoods + economic activity esp farming) around to make way for greater good infra etc and the cost to compensate them too.
It has a slightly higher population than the entire Africa (though this will reverse shortly) and sees a similar unequal spread of development like that continent too.
That is the big challenge that faces India in unlocking its full population potentials.
Countries like Vietnam have big advantage naturally on this comparatively speaking as essentially the whole country population is located on coastline already to export and trade etc.
It allows Vietnam to punch above its weight on lot of manufacturing economic sectors and thus it is no surprise that Vietnam is mentioned a number of times in the article. @Viva_vietnamm
The national logistics policy (and creation of a unified logistics interface platform for businesses to use) hopefully will go some way in addressing that this decade (to grow economies of scale in logistics sector) and leverage on reforms already done like GST (though challenges remain on that), unified payment interface (quite big success story so far), dedicated (rail) freight corridor projects, continued highway, road and warehouse expansion etc :
The National Logistics Policy can help India achieve its economic growth vision
By focusing on correcting the multi-modal connectivity mix and digitisation, the policy will help reduce costs in the logistics sector, power the country’s economic growth, and help it achieve its ESG goals
Only when this economy of scale is truly achieved (i.e north indian population has same access to world markets and commerce like counterparts in west+south+capital of country) and more of the labour force becomes activated and globally competitive, can India start to actually attract lot of manufacturing from China for example....rather than nibble away here and there like now (though this is starting to accelerate).
No country-continent of this scale can industrialise by leaving 50%+ of its population behind and largely reliant on agriculture, localised commerce and transient labour.
This decade (and next one) are absolutely the last decades India has to "catch the bus" to a large enough sufficient degree....or be consigned to a pretty bleak future....so fingers crossed.
@Paro @Jackdaws @Zapper @Gessler @Rajendra Chola et al.
Why south India outperforms the north
What are the consequences of southern India outperforming the rest of the country?
www.bbc.com
One line sticks out
"In many of these indicators of health, education and economic opportunities, the difference between the south and the north is as stark as that between Europe and sub-Saharan Africa."
Infra development is utterly useless without change in attitude toward women education, their inclusion in the workspace.
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Huge gap between North and South on various indices.
Why south India outperforms the north
What are the consequences of southern India outperforming the rest of the country?
One line sticks out
"In many of these indicators of health, education and economic opportunities, the difference between the south and the north is as stark as that between Europe and sub-Saharan Africa."
Infra development is utterly useless without change in attitude toward women education, their inclusion in the workspace.
Entirely agree.
However the northern region is not harnessing whats already there (in flawed state) due to lack of lot of basic infra to connect things well (especially to competitive water body for cheap logistics that is the sea)....and that's making things worse than they have to be.
After all west and south had similar development indices too back in the day (to north now) when they started to change economically in the 1990s....because there is geographic advantage that is easier to develop there for what you can operationalise right away.
But you are right that there is a large inertia in north that is now a big issue past the infra solution. Infra is not a complete solution, its just one part to mitigate and hopefully open up avenues to addressing the larger issues in various ways as "what works" starts to show results to lot of people to change their attitude.
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Global Innovation Index: India breaks into top-40 for first time
Showing a substantial improvement in the global innovation index ranking India has been placed in the top 40 countries for the first time in the annual report for 2022 released by the Switzerland-based World Intellectual Property Organisation (WIPO) on Thursday.
Global Innovation Index: India breaks into top-40 for first time
Ranking by Switzerland-based World Intellectual Property Organisation has Switzerland, US, Sweden, UK as world’s most-innovative economies
Tribune News Service
New Delhi, September 29
Showing a substantial improvement in the global innovation index ranking India has been placed in the top 40 countries for the first time in the annual report for 2022 released by the Switzerland-based World Intellectual Property Organisation (WIPO) on Thursday.
The WIPO in its report, a copy of which is with The Tribune, said, “India is the innovation leader in the lower middle-income group. It continues to lead the world in ICT services exports and holds top rankings in other indicators, including venture capital receipt value, finance for startups and scale-ups, graduates in science and engineering, labour productivity growth and domestic industry diversification.”
Switzerland, the United States, Sweden, the United Kingdom and the Netherlands are the world’s most-innovative economies, according to the report.
Emerging economies are showing consistently strong performance, including India and Turkiye, as both of them enter the top 40 for the first time, it said, adding that in the Global Innovation Index 2022, India jumped to the 40th position while Turkiye is placed at the 37th position.
India has made steady progress in its ranking in the global innovation index. India first entered into the top 50 in 2020 and found a place in the top 40 this year, it noted.
==================================================
Turkey also advanced a lot in the index: https://www.dailysabah.com/business...ic-advance-in-global-innovation-index-ranking
The entire report can be found here:
Global Innovation Index 2022 – Which are the most innovative countries
The Global Innovation Index reveals which are the most innovative countries in 2022 and if innovation drives productivity and promote economic growth.
www.wipo.int
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42Global Innovation Index 2022
What follows are highlights of the Global Innovation Index 2022 (GII) ranking. Appendix I provides
details on how to interpret and analyze the results, particularly with regard to any year-on-year
comparison of GII rankings, which requires cautious interpretation. Box 2 describes the process
involved in using the GII to improve an economy’s innovation performance.
The GII 2022 innovation leaders
Only a small number of economies have consistently delivered peak innovation
performance
For a twelfth consecutive year, Switzerland ranks first in the GII (Figure 9). The United States of
America (US) overtakes Sweden to climb to 2nd position, and continues to head the league table of
scoring best in the world on 15 of the 81 GII 2022 innovation indicators (Box 1). Germany reaches
8th position, its highest ranking since 2009, after having entered the top 10 in 2016. Singapore
bounces back to 7th position.
China continues its ascent toward the top 10, reaching 11th position in 2022. China remains the
only middle-income economy within the top 30, keeping its 3rd place within the South East Asia,
East Asia, and Oceania (SEAO) region and staying in 1st place in the upper middle-income group
(see Figure 10 and Table 2). Canada (15th) returns to the top 15 for the first time since 2016 having
dropped out of the top 10 in 2012.
Among the top 25 economies, Estonia (18th) makes notable progress this year, as do the United
Arab Emirates (UAE) (31st) and Poland (38th).
Apart from China, there are only four other middle-income economies among the top 40 economies
for innovation. Bulgaria (35th) and Malaysia (36th) keep the same rank as in 2021. In addition, Türkiye
and India enter the top 40 for the first time, placed 37th and 40th, respectively. India overtakes Viet
Nam (48th) as the top lower middle-income economy for innovation.
Chile (50th) makes it back into the top 50 – its best ranking since 2018 – making it first for
innovation in Latin America and the Caribbean once again. For the first time ever, Brazil (54th) is
among the top 3 for the region, scoring 2nd and displacing Mexico (58th), which drops to 3rd and
losing three ranks in 2022. Costa Rica, in turn, exits the regional top 3, ranking 68th overall in
innovation, down 12 ranks in 2022. Other notable improvers in the global innovation ranking for
the region are Colombia (63rd), Peru (65th), Argentina (69th) and the Dominican Republic (90th). Peru
positions itself as a global leader this year in the indicators availability of Loans from microfinance
institutions (1st), Graduates in science and engineering (18th) and Utility models (22nd).
The Islamic Republic of Iran makes a big leap, reaching the 53rd position; it takes 3rd position
among the lower middle-income group. Indonesia takes a big jump into the top 80 in 2022,
ranking 75. Uzbekistan continues moving ahead and reaches the 82nd position in 2022, placing it
among the top 3 economies for the Central and Southern Asia (CSA) region, having re-entered the
GII only in 2020 due to its better innovation data availability.
Pakistan is a prominent climber in the GII 2022 ranking, entering the top 90 at 87th place.
This year, Indonesia, Uzbekistan and Pakistan entered the group of Innovation Achievers
for the first time by performing above expectation on innovation for their level of economic
development (see Table 3 and Figure 11).
Sixteen out of the 25 economies from Sub-Saharan Africa covered this year improved their
ranking. Botswana took the biggest leap forward, reaching 86th position, and in so doing
overtaking Kenya (88th) among the top 3 for the region. Other notable improvers within the
region are Mauritius (45th), Ghana (95th), Namibia (96th) and Senegal (99th). South Africa remains
unchanged in 61st place – and continuing to fail to improve consistently over time
What follows are highlights of the Global Innovation Index 2022 (GII) ranking. Appendix I provides
details on how to interpret and analyze the results, particularly with regard to any year-on-year
comparison of GII rankings, which requires cautious interpretation. Box 2 describes the process
involved in using the GII to improve an economy’s innovation performance.
The GII 2022 innovation leaders
Only a small number of economies have consistently delivered peak innovation
performance
For a twelfth consecutive year, Switzerland ranks first in the GII (Figure 9). The United States of
America (US) overtakes Sweden to climb to 2nd position, and continues to head the league table of
scoring best in the world on 15 of the 81 GII 2022 innovation indicators (Box 1). Germany reaches
8th position, its highest ranking since 2009, after having entered the top 10 in 2016. Singapore
bounces back to 7th position.
China continues its ascent toward the top 10, reaching 11th position in 2022. China remains the
only middle-income economy within the top 30, keeping its 3rd place within the South East Asia,
East Asia, and Oceania (SEAO) region and staying in 1st place in the upper middle-income group
(see Figure 10 and Table 2). Canada (15th) returns to the top 15 for the first time since 2016 having
dropped out of the top 10 in 2012.
Among the top 25 economies, Estonia (18th) makes notable progress this year, as do the United
Arab Emirates (UAE) (31st) and Poland (38th).
Apart from China, there are only four other middle-income economies among the top 40 economies
for innovation. Bulgaria (35th) and Malaysia (36th) keep the same rank as in 2021. In addition, Türkiye
and India enter the top 40 for the first time, placed 37th and 40th, respectively. India overtakes Viet
Nam (48th) as the top lower middle-income economy for innovation.
Chile (50th) makes it back into the top 50 – its best ranking since 2018 – making it first for
innovation in Latin America and the Caribbean once again. For the first time ever, Brazil (54th) is
among the top 3 for the region, scoring 2nd and displacing Mexico (58th), which drops to 3rd and
losing three ranks in 2022. Costa Rica, in turn, exits the regional top 3, ranking 68th overall in
innovation, down 12 ranks in 2022. Other notable improvers in the global innovation ranking for
the region are Colombia (63rd), Peru (65th), Argentina (69th) and the Dominican Republic (90th). Peru
positions itself as a global leader this year in the indicators availability of Loans from microfinance
institutions (1st), Graduates in science and engineering (18th) and Utility models (22nd).
The Islamic Republic of Iran makes a big leap, reaching the 53rd position; it takes 3rd position
among the lower middle-income group. Indonesia takes a big jump into the top 80 in 2022,
ranking 75. Uzbekistan continues moving ahead and reaches the 82nd position in 2022, placing it
among the top 3 economies for the Central and Southern Asia (CSA) region, having re-entered the
GII only in 2020 due to its better innovation data availability.
Pakistan is a prominent climber in the GII 2022 ranking, entering the top 90 at 87th place.
This year, Indonesia, Uzbekistan and Pakistan entered the group of Innovation Achievers
for the first time by performing above expectation on innovation for their level of economic
development (see Table 3 and Figure 11).
Sixteen out of the 25 economies from Sub-Saharan Africa covered this year improved their
ranking. Botswana took the biggest leap forward, reaching 86th position, and in so doing
overtaking Kenya (88th) among the top 3 for the region. Other notable improvers within the
region are Mauritius (45th), Ghana (95th), Namibia (96th) and Senegal (99th). South Africa remains
unchanged in 61st place – and continuing to fail to improve consistently over time
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I guess we need to come up with more new innovations huh?Global Innovation Index: India breaks into top-40 for first time
Showing a substantial improvement in the global innovation index ranking India has been placed in the top 40 countries for the first time in the annual report for 2022 released by the Switzerland-based World Intellectual Property Organisation (WIPO) on Thursday.www.tribuneindia.com
Global Innovation Index: India breaks into top-40 for first time
Ranking by Switzerland-based World Intellectual Property Organisation has Switzerland, US, Sweden, UK as world’s most-innovative economies
Tribune News Service
New Delhi, September 29
Showing a substantial improvement in the global innovation index ranking India has been placed in the top 40 countries for the first time in the annual report for 2022 released by the Switzerland-based World Intellectual Property Organisation (WIPO) on Thursday.
The WIPO in its report, a copy of which is with The Tribune, said, “India is the innovation leader in the lower middle-income group. It continues to lead the world in ICT services exports and holds top rankings in other indicators, including venture capital receipt value, finance for startups and scale-ups, graduates in science and engineering, labour productivity growth and domestic industry diversification.”
Switzerland, the United States, Sweden, the United Kingdom and the Netherlands are the world’s most-innovative economies, according to the report.
Emerging economies are showing consistently strong performance, including India and Turkiye, as both of them enter the top 40 for the first time, it said, adding that in the Global Innovation Index 2022, India jumped to the 40th position while Turkiye is placed at the 37th position.
India has made steady progress in its ranking in the global innovation index. India first entered into the top 50 in 2020 and found a place in the top 40 this year, it noted.
==================================================
Turkey also advanced a lot in the index: https://www.dailysabah.com/business...ic-advance-in-global-innovation-index-ranking
The entire report can be found here:
Global Innovation Index 2022 – Which are the most innovative countries
The Global Innovation Index reveals which are the most innovative countries in 2022 and if innovation drives productivity and promote economic growth.
India should be a top 10 country,top 20 at least for my country.
Turkey is already doing good ahead of India at rank 37
