India has always a lot to learn from its neighbors. This time it should take recent growth in China’s export success as an example.
Currently, China-US trade is a slightly tense affair. Keeping this in mind, India should take this opportunity to enter the export manufacturing and create well-paid jobs. This sole move can help India to become a 5 trillion-dollar economy, which it had dreamt once.
Similar to China , India is thinking of starting the assemble in India for the world. This can raise its export market share significantly by 3.5% in 2025 and close to 6% in 2030. During this phase, India could create as many as 4+ -crores of well-paid jobs by 2025 and 8 crore similar jobs by 2030.
The US-China trade war is creating tensions across different GVC’s which are looking for an alternative location for the operations. Even before the trade war began, China’s image as a low-cost location for final assembly of industrial products was rapidly changing due to labor shortages and increases in wages.
India’s job market is facing a huge demand-supply mismatch with employment generation falling way behind jobs on offer. At least 12 million new fresh faces enter the labor market every year in India. Hence ‘Assemble in India’ is a good way to stop the unemployment crisis in the country.