Skip to main content

Despite a supply chain extending 7,367 kilometers, and Chinese labor costs that significantly exceed those in India, thousands of Hindu gods are manufactured in China and shipped to the Indian market, outcompeting local producers. This article asks if China subsidizes its exporters, and identifies seven bottlenecks impeding the competitiveness of Indian manufacturers. India has had a more than 2000 year history of entrepreneurship. Yet, it was only in 2014 that the Modi government launched its “Make-In-India” campaign to further Indian manufacturing and exports. The issue is critical because each year around 20 million Indians attain the age of 18, and most look for jobs. The Modi government needs to do something stronger to avoid turning the vaunted “demographic dividend” into a demographic time-bomb. With rising labor rates in China, and a strengthening Yuan, can (or should) India try to take over from China the mantle of “factory of the world”?

Photo: Getty Images/ferrantraite

download full article (pdf)
Farok Contractor

Farok Contractor

Rutgers Business School

Farok Contractor is Distinguished Professor of Management and Global Business at Rutgers Business School, a Fellow of the Academy of International Business (AIB), and author of ten books and over 150 scholarly articles. He holds a Ph.D. (Managerial Science and Applied...

Learn More > Visit Author’s Page at university site >

Related articles

Supply Chain Management

Economy

The Predictive Value of the Logistics Managers’ Index

by Zachary Rogers, Dale Rogers, Steven Carnovale, Jr., Ron Lembke, Rudolf Leuschner, Sengun (Shen) Yeniyurt

The Logistics Managers Index (LMI) is a monthly metric of logistics activity in the United States, as measured by a survey of supply chain professionals.

read more
A shipping yard at sunset

Case

International Business

Marketing

Market Entry in India: The Curious Case of Starbucks

by Dominik Fischer, Kaushik Roy

We examine Starbucks’ entry strategy in India, as well as the antecedents to the entry. Employing Dunning's eclectic paradigm and Ghemawat's AAA framework...

read more
Starbucks logo on a storefront window
Book icon

Print Edition

Learn More
Rutgers University

About Rutgers Business Review

About Us