"The Rise of China as a Manufacturing Superpower and India's Emerging Role in Global Manufacturing", comparison between them

    

futuristic manufacturing superpower, advanced technology, expansive industrial complexes, and a dynamic mix of automation and human effort.

Today, the only manufacturing superpower in the world is China. Its output surpasses the combined output of the next nine biggest producers. This wasn't always the case, though, as a quick look at Chinese manufacturing history reveals. China was a tiny player in the global industrial sector prior to 1980. China's manufacturing output in the 1970s was about equal to that of Italy.In 1980, that started to change. One by one, China began to supplant the industrial powers. They even surpassed the United States by 2010. This was unimaginable prior to 2010, when the United States was the largest manufacturing giant in the world. China's proportion in global manufacturing exports increased from 3% in 1995 to 20% in 2020.Even more dramatically, China's proportion of the world's industrial output increased from 5% in 1995 to almost 35% in 2020. How did it happen? How did China transform from a predominantly agrarian country to the manufacturing powerhouse that it is now, with manufacturers and product assembly services in China, at a time when the US depends more on Chinese inputs than the other way around?China did not advance technologically until the late 1980s. They were able to stay up with the rest of the world, nevertheless, thanks to notable advancements in general technology. The 1980s saw the advent of satellites, nuclear power, and mass computers. But there was a big industrial deficit that China needed to close. A significant amount of their industrial technology was still from the 1950s, making it mostly obsolete.One reason for this disparity was a misalignment between the industrial sector and research and development. China became a leader in innovation during this time. The quantity of significant scientific discoveries made in China increased from 2,790 to 10,000 between 1979 and 1984. In a similar vein, there were 264 inventions authorized by the government, up from 42. These differences were the result of several circumstances. One was that there were insufficient intellectual institutions, and the other was that industrial managers put quotas ahead of research and development. During this period, industrial applications received little consideration as knowledge was sought for its own purpose. As a result, research was not given much attention.The CPC's publication of the "Resolution on the Reform of the Science and Technology Management System" in 1985 marked a sea change. The significance of research and technology for economic advancement was underlined in this resolution. This was managed by Deng Xiaoping, who gained notoriety as the "Architect of Modern China" by guiding China through a number of extensive market-economy reforms. Universities, research facilities, and factories began working together more as a result of this shift.Between 1992 and 2002, China introduced a number of VERY alluring incentives to entice international businesses to join its expanding industrial sector, including: Exemptions from Taxes Industrial zones that are pre-built and unregulated Foreign businesses who relocated to these areas were given almost complete freedom to operate. This allowed foreign businesses to disregard laws governing employee pay and working conditions. It was simple to identify a zone that would provide international corporations with all they want because of the intense competition among other industrial zones.Additionally, there were no restrictions on the kinds of industry that may take place in the industrial zones. Low-value, low-tech, and high-employment manufacturing consequently took center stage. China's factory production surpassed that of the US by the early 2000s. But starting in 2005, China started to progressively dismantle the structure that had first attracted so much international investment and business. China is now highly controlled, costly, and taxed. Additionally, they have changed their focus to high-tech and high-value manufacturing. Therefore, even before the trade war with the United States began in 2017, China was no longer a desirable location for many manufacturing businesses.Since China's manufacturing incentives from the 1990s are being offered by a number of other South East Asian nations (India, Vietnam, Bangladesh, etc.), many businesses are leaving China in search of better opportunities elsewhere. One of the most popular travel destinations is now India.India hasn't been seen as a manufacturing powerhouse in the past. Over the past few decades, India's manufacturing sector has struggled to surpass 13–17% of GDP, lagging behind that of neighboring China. China's industrial might has continuously been ten times greater than India's, despite the fact that India's manufacturing sector has showed sustained growth. Currently accounting for roughly 17% of the GDP, manufacturing is predicted to increase to 21% over the next six years. With a 3.3% contribution, India is in fifth place in the global manufacturing standings, while China comes in at 28.4%.Currently accounting for roughly 17% of the GDP, manufacturing is predicted to increase to 21% over the next six years. With a 3.3% contribution, India is in fifth place in the global manufacturing standings, while China comes in at 28.4%.However, India is fast becoming a major export manufacturing powerhouse. It provides deep labor pools, competitive cost structures, and expanding size and capabilities across a range of industries. Another advantage is that India has a potentially huge local market. As part of a China-plus-one strategy, several companies who now source in China are already aiming to diversify their manufacturing portfolio by sourcing from India. India is viewed as a profitable and, in certain situations, better alternative to China by other businesses that are only now beginning to investigate low-cost country sourcing.Businesses are now looking for a backup due to an expanding variety of causes. First, the Chinese government pushed for knowledge transfer to Chinese rivals, and labor costs in China were on the rise. Then came the lockdowns from 2020 to last year, President Donald Trump's penalties on Chinese imports in 2018, and the current movement by Western nations to separate their economies from China.Efforts by the United States and its allies to lessen reliance on China have increased since China announced a "no limits" relationship with Russia on the eve of the invasion of Ukraine last year. During a visit to India in February, Treasury Secretary Janet Yellen stated that the United States is "strengthening integration with our many trusted trading partners- including India" by reducing its reliance on China through "friend-shoring."This resulted in a 28% decrease in US imports of Chinese mechanical machinery from 2018 to 2022, while Mexico, ASEAN, and India saw increases of 21%, 61%, and 70%, respectively. A number of liberalized Foreign Direct Investment (FDI) regulations and streamlined compliance procedures have allowed India's manufacturing sector to develop at a double-digit rate of about 12% annually, despite a global pandemic and geopolitical crises.Prior to the epidemic, the manufacturing sector in India accounted for 16–17% of the country's GDP and is expected to develop at one of the quickest rates. By 2025, India's manufacturing sector might be worth $1 trillion USD. When it comes to manufacturing, India has a number of advantages over China. India's capacity for manufacturing is also fueled by advantages such as a majority of educated English speakers investments in logistical infrastructure; a large, trainable workforce; digital infrastructure that makes operations more effective; proximity to several nations with the purpose of diversifying the supply chain; a prime location for breaking into emerging markets, as well as cost benefits in low-cost and economical manufacturing, backed by robust legal protection and patents.When considering the economic structure, it is evident that the industrial sector dominates the Chinese economy. While the manufacturing sector's proportion of India's GDP decreased from 17% in 1989 to 14.8% in 2009, China's manufacturing sector's share has remained relatively constant at 34.3% in 1989, 31.6% in 1999, and 33.9% in 2009. Between 1999 and 2009, China's manufacturing sector grew by an average of 11.2% year, whereas India's growth was 8.3%. The current situation has increased regional stability while creating enormous and hitherto unheard-of economic and investment opportunities for both nations.The two countries' bilateral commerce reached $2 billion in 2000–01 and reached the goal of $60 billion in 2010. Chinese market potential has been further highlighted by the country's accession to the World Trade Organization (WTO). 1.5% The top five industries based on GVA, which are Chemicals, Basic Precious and Non Ferrous Metals, Non Metallic Mineral Products, and Basic Iron and Steel, show similarities when comparing the industrial structures of the two nations with regard to the manufacturing sector. ISIC-Rev 3 was used by both countries in 2007, which has been considered for comparability.Furthermore, the extensive availability of Chinese goods in the Indian market under ISIC (Rev-3) Divisions 30, 31, 32, 36, and 39 has made a careful examination of the sectors in both nations that produce these goods necessary. Using a few economic indicators derived from both countries' official statistics, an analytical study has been conducted to determine the strengths and weaknesses of those industrial industries.

   

Given how important manufacturing is to a nation's economic well-being, that nation must also play a significant part in creating an atmosphere that supports manufacturing. Government policy must be in line with manufacturing executives' investment choices in order for a nation to be competitive and establish a positive cycle of prosperity, particularly in the current era of changing industrial dominance.China's rise to the top of the list (Deloitte and Compete, 2010) is not surprising considering its increasing prominence in the manufacturing sector over the last decade, especially as a regional center for joint ventures, foreign direct investments, and foreign outsourced production. Executives believe that China is strong in the majority of the key competitiveness drivers. A large number of highly qualified engineers, scientists, researchers, and workers help to get a high grade for talent-driven innovation. The government is committed to investing in science, technology, and physical infrastructure for manufacturing in order to boost Chinese production and innovation's technical value-add.When you combine this benefit with a geographically flexible, relatively inexpensive foundation, China has a strong lead and will likely overtake other countries in the near future in terms of manufacturing competitiveness. China's position as a manufacturing superpower has been cemented due to the rapid and significant changes that have occurred during the last 20 years. The fact that India is currently ranked number two (Deloitte and Compete, 2010) and will likely solidify its position over the next five years is perhaps even more unexpected. India is a desirable location for manufacturers due to its huge, highly educated, English-speaking workforce, democratic government, and abundant supply of talented scientists, researchers, and engineers.India's software industry has grown to unparalleled heights since the mid-1990s, and post-economic emancipation has created previously unheard-of market opportunities for Indian manufacturing. In addition, India has a sizable workforce of skilled workers that may aid in the production process. To develop India's manufacturing industry, efforts should be made to properly utilize people resources through talent-driven innovation, labor and material costs, energy costs and policies, economic, trade, financial, and tax systems, and the quality of physical infrastructure.secondary data sources and restricted to a portion of the data for both nations that are currently available. According to the investigation, there may be technological differences in the manufacturing sectors that are unavailable to both nations. This comparison did not find an acceptable conclusion for high GVA in China because of this. Technology variability could be one of the causes of China's high GVA. Examining the differences in technology between the two nations' industrial sectors, which could be a factor in China's high GVA, will be fascinating. In addition to technology differences, one may examine the political and economic distinctions between the two nations.