Below is the current account balance in trade for a list of countries published by the CIA .Going through the list we can thus understand how good India's exports have been over the years .Politicians will lie , about India shining , bloggers will tell you that India will be the next super power . None of that is going to happen unless and until we have a policy of encouraging local manufacture , investments in research and technology and the ability of the Indians to look beyond a "safe" job and "comfortable " living .
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2187rank.html
A simple example would be - Imported chinese scissors are sold in India from Rs. 15 to Rs. 200 .
The actual cost of importing a Rs .15 scissors works out to Rs 3 . Added to that we have a customs duty and the cost of the final product until it reaches the wholesaler is Rs .7 . Now the product is passed on to the Retailer or shop keeper in your friendly neighbourhood for Rs. 10 and the shopkeeper sells it for Rs . 15 to you .
Now if the same product was produced in India it would cost exactly the same , probably the same as cost of the product from China plus the import duty , but no one would want to manufacture it . The reason being the lower level business do not receive any favours from the government like exemption of taxes , labour laws , power issues .
If someone does want to venture out boldly he miserably loses out due to social , economic pressures and eventually has to sell everything to settle his /her debts
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2187rank.html
A simple example would be - Imported chinese scissors are sold in India from Rs. 15 to Rs. 200 .
The actual cost of importing a Rs .15 scissors works out to Rs 3 . Added to that we have a customs duty and the cost of the final product until it reaches the wholesaler is Rs .7 . Now the product is passed on to the Retailer or shop keeper in your friendly neighbourhood for Rs. 10 and the shopkeeper sells it for Rs . 15 to you .
Now if the same product was produced in India it would cost exactly the same , probably the same as cost of the product from China plus the import duty , but no one would want to manufacture it . The reason being the lower level business do not receive any favours from the government like exemption of taxes , labour laws , power issues .
If someone does want to venture out boldly he miserably loses out due to social , economic pressures and eventually has to sell everything to settle his /her debts
No comments:
Post a Comment