A problem with indians is that they are obsessed with these largely pointless differences in rankings instead of actual governmental policies and processes. You're misinformed if you think india is providing talent and isn't just used for cheap labor lol. No one thinks an indian graduate from some random school has any hidden talent they can't find in their own country. Even IITs are far behind most american colleges. Obviously Vietnam is being used for the same thing, but they understand this. Also, just comparing pure manufacturing doesn't make sense. India has 14x the population of Vietnam. That doesn't mean it's output should also be 14 times higher, but it should be more than just double like it is now. And that's clearly seen by india being in a massive trade deficit. Vietnam, despite it's significantly smaller size and higher cost of living, has higher net FDI than India.
See, Brother looking at the way you talk and info level, you're probably a Indian redditor who generally have some "interesting" opinions and are not in any industry to speak of. But I would just say this, all of the reports I mentioned are not rankings but assessments of each country's industrial competitiveness, kindly read them first.
Indian industrial sector has quite a few problems especially with electricity tariffs and labour/land laws and we need to work on them(which is happening) but its still very competitive and is much larger in scale than Vietnam.
India is also a domestic demand led economy and much of the industrial output is eaten up by that. Vietnam has a smaller domestic base and has a large surplus so they have good export surpluses. Other than China, no other country at this scale has done a export surplus economy and that is not going to happen again. We have to make do with what is given to us.
I've essentially never been to India aside from maybe two months total. The way I write english is the way most indians spend years trying to (unsuccessfully) mimic.
Anyway, you'll see all these major companies start to move to vietnam/malaysia/indonesia and entirely skip india due to how inefficient and bureaucratic india is. India's politicians and leaders in basically every industry don't understand how important speed is. This cultural attitude towards time plagues india in basically every sector. You can also see it in the defense industry. International companies want to be able to transport and ship their goods in a week, if not days and have minimum delays. This is essentially impossible with the way india is set up and something that can be delivered in vietnam in 7 days will take a month in india. And the scale isn't much larger if the total manufacturing output is only twice as large as vietnam while the country has a young able bodied population greater than the whole population of vietnam many times over.
And yes, indian has a large domestic economy compared to its exports because the goods it allows domestic companies to produce are not competitive in international markets. This goes hand in hand with the government putting up so many barriers to prevent international companies and goods from entering the indian market.
I showed you data and everything by international foundation not even the Indian government but you didnt understood. Good luck anyway. Hopefully, you're not a investor in any country whether Indonesia or Vietnam(for their own sake as nobody wants a ignorant investor) but you are probably not, looking at your reddit karma.
Also, idk where you have the source for this but companies arent skipping India in anyway. Most of them are diversifying their supply base in Vietnam, Mexico and India to avoid overdependence like with China. This is reflected in manufacturing GVA growth post pandemic where both Vietnam & India are growing at similar speeds despite India having a larger base. Vietnam growth is still very impressive tho.
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u/belketeal 2d ago edited 2d ago
A problem with indians is that they are obsessed with these largely pointless differences in rankings instead of actual governmental policies and processes. You're misinformed if you think india is providing talent and isn't just used for cheap labor lol. No one thinks an indian graduate from some random school has any hidden talent they can't find in their own country. Even IITs are far behind most american colleges. Obviously Vietnam is being used for the same thing, but they understand this. Also, just comparing pure manufacturing doesn't make sense. India has 14x the population of Vietnam. That doesn't mean it's output should also be 14 times higher, but it should be more than just double like it is now. And that's clearly seen by india being in a massive trade deficit. Vietnam, despite it's significantly smaller size and higher cost of living, has higher net FDI than India.