Question 16ExplainGS3GS1

Explain the socio-economic transformations resulting from women's migration to metropolitan areas in India. (Answer in 250 words)

Introduction

Rising labour cost and geopolitical conflict with China is pushing labour intensive industry from China to South and Southeast Asia.

20 words

Main Body

Reasons for shifting of labour intensive industries from China to Southeast Asia: (1) Rising labour cost in China due to economic development, leading to lower labour cost in Southeast Asia; (2) China's strategy - MNCs promoting diversified supply chain (e.g. iPhone); (3) Trade wars - China-USA trade wars and high tariff on China, industries shifting to escape tariff; (4) China's focus on advance technology based industries, changing economic base; (5) Friend shoring and Near shoring - Companies promoted to shift to friendly nations by Japan, USA etc.; (6) Incentives - e.g. PLI scheme by India; (7) COVID Disruption - Supply chain impact due to over reliance on China. Advantages for India: (1) Production base - companies establishing manufacturing units in India; (2) Reduce dependence on China and import deficit; (3) Employment - to generate employment, India needs BOHs jobs annually; (4) Integration with supply chain (Textile, RDI, Mobile assembly). Challenges: (1) Intense competition from Vietnam, Thailand etc.; (2) Increase in import of raw material and components by Mobile Phone parts; (3) Low value addition in India; (4) Poor Infrastructure (high logistic cost 13%).

Continuation of measures: (1) Value addition - based incentive, manufacturer ecosystem, improve training to build integration with supply chain (Textile, RDI, Mobile assembly); (2) Improve Infrastructure ecosystem - Port, Roads, Digital connectivity; (3) Training to global skill.

— Jayant Agarwal · AIR 64

220 words1 paragraphs

Conclusion

Movement of industries from China provided opportunity to India to be kind of manufacturing base. Thus multiphrasing strategy and policy stability it required to attract industries.

26 words

Comprehensive coverage of reasons
International context provided
Specific schemes mentioned (PLI)
Balanced presentation of advantages and challenges
Reference to Economic Survey data

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Topper

Jayant Agarwal

AIR 64

Subject & Paper

GS3GS1

Topic

Economy

Industrial Policy and Manufacturing

Shifting of Industries from China to India

Writing Stats

266

Total words

Paragraphs

Linked PYQ

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