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)

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Answer Strengths Gaps Keywords

Main Body

Rapid industrialization in China, led by Deng Xiaoping's policies made it as "Factory of the world".

These industries included:

Footwear

Toys

Textiles

Leather

Shift of these industries to South & Southeast Asia

1Economic factors - decline in labour costs in countries such as Vietnam, Thailand

2Geopolitical Desking - companies following China's strategic to relocate enterprises to South & Southeast Asia - to reduce overdependence on China

3Political backlash - Communist party's backlash on private sector, opaque norms, anti-democratic policies

4Evolving Trade Dynamics - Tariff war unleashed by Trump, imposition of 160% tariffs on china, has led to relocation of supply chain

to South & Southeast Asia - to reduce overdependence on China.

3Political backlash - Communist party's backlash on private sector, opaque norms, anti-democratic policies

4Evolving Trade Dynamics - Tariff war unleashed by Trump, imposition of 160% tariffs on china, has led to relocation of supply chain

Advantages for India:

1Attract foreign investment - FDI inflows will rise

2Boost domestic manufacturing sector -

3Employment opportunities for unskilled or semi-skilled workers (Garment, Coffee etc)

4Boost exports & GDP growth rate

Challenges for India:

1Regulatory cholesterol - bureaucratic red tape & complex business environment -

2Infrastructure gaps - poor logistics, electricity, water supply -

3Skill deficit - only 4-5% of workers receiving vocational training

4High tariffs - makes inputs uncompetitive -

Schemes like Make in India, PLI & greater deregulation can create opportunities for India.

3Foxconn plant for i-phone manufacturing in T.Nadu.

3Employment opportunities for unskilled or semi-skilled workers (Garment, Coffee etc)

4Boost exports & GDP growth rate

Challenges for India:

1Regulatory cholesterol - bureaucratic red tape & complex business environment -

2Infrastructure gaps - poor logistics, electricity, water supply -

3Skill deficit - only 4-5% of workers receiving vocational training

4High tariffs - makes inputs uncompetitive -

Schemes like Make in India, PLI & greater deregulation can create opportunities for India.

— Saurabh Sharma · AIR 146

335 words11 paragraphs

Historical context of China's rise
Multiple causal factors identified
Contemporary geopolitical factors included
Comprehensive analysis of advantages and challenges
Mentions government schemes like Make in India and PLI
Identifies specific infrastructure deficits
Provides concrete example of Foxconn investment
Solutions-oriented conclusion

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Topper

Saurabh Sharma

AIR 146

Subject & Paper

GS3GS1

Topic

India's Economic Policies and Industrial Growth

Shift of Manufacturing Industries to South Asia

China's Industrial Shift, Labour-Intensive Industries, India's Opportunities

Writing Stats

335

Total words

Paragraphs

Linked PYQ

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