Made in China: Millions of Hindu Gods

India – with a young, talented and entrepreneurial workforce and an economy that relies on low wages – could provide formidable competition to China as factory to the world. India’s Prime Minister Narendra Modi has promoted a “Make in India” campaign and likewise expects consumers to buy in India, too. But like consumers everywhere, Indians appreciate a bargain. Even fierce nationalists do not hesitate to snap up low-cost goods made in China from tiny figurines of Hindu deities to smartphones, explains Farok J. Contractor, a professor in the Management and Global Business Department at Rutgers Business School. Despite rising labor costs and long shipping distances, China manages to outcompete India’s producers for all types of goods. Contractor lists seven impediments for Modi’s campaign including burdensome regulations, an unreliable electric grid and pervasive corruption. “Despite the ‘Make in India’ campaign, India’s trade imbalance with China and the world has only worsened,” Contractor concludes. “Eliminating unnecessary bureaucratic interference could help someday turn India into a factory for the world.” – YaleGlobal