Question 16GS3GS1
Why is there a shift of labour-intensive industries from China to South and Southeast Asia? Discuss the advantages and challenges for India in this context. (Answer in 250 words)
Introduction
The process of de-localization and de-industrialisation of labour-intensive industries from China to South and Southeast Asia is a result of wage arbitrage in southern Asian countries and the Corporate strategy.
30 words
Main Body
Causes of shift
1High availability of cheap labour - In textiles and garments industry in Bangladesh has lower labour costs (exports of garments from Bangladesh)
2Wage Arbitrage in south Asian countries like India
3Ease of payage - In china abandoned baggage in south Asian and ASEAN countries speak English - better communication
4Dominance of china in manufacturing - wages power wary at china's growth - China's strategy to deindusrialize from china
Examples: Samsung factory opened in India, Usha Hindustan has for Apple producers and eco labour intensive like Lego manufacturing
Advantages:
1Creation of employment - high employment elasticity of manufacturing sector
1Growth of GDP - China 8 9 trillion by 2030 - Increased export potential - 8 7 trillion by 2027
Challenges:
2Poor skill capacity - only (Six) employable
2Challenges of Gaze of Doing business
3Environmental concern - pollution India must de-regulated to reap benefits of shift with sustained development of ecology in mind
— Ishitha Anand · AIR 50
163 words7 paragraphs
Diagram
Map of South Asia showing India, Bangladesh, Thailand, Vietnam, Cambodia with labels
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Topper
Ishitha Anand
AIR 50
Subject & Paper
GS3GS1
Topic
Distribution of Key Natural Resources across the world
Location of primary, secondary, and tertiary sector industries
Writing Stats
193
Total words
7
Paragraphs
analytical and structured
Tone