India: The New “Factory” of the World? - VisualPolitik EN

Since the country suffered a huge crisis in 1991, it had to make a lot of reforms to open up to the world and that improved its economy. But even so, India has not been able to reproduce the industrial model that has characterized all the economic success stories in Asia, such as those of Japan, South Korea or China itself.

However, since 2021, disappointment has given way to optimism. And suddenly, India reappeared again: private equity, portfolio managers and even large multinationals have turned their attention to this market.

What exactly explains this change, and why is this country now suddenly capturing the imagination of analysts, economists and investors around the world? And the most important question of all: could India really become something like the new China?

[sangeethkallatt]

Ford lost the market not because the Indian middle class had decided not to buy their cars, but because of Ford management inefficiencies, misreading the market trends, and the inability to compete with Indian and Korean car makers

[bhad]

Ford might have failed. But Suzuki, Hyundai, Kia beg to differ. Innovation is key to success.

[coldram]

My favorite line about India “India has disappointed both optimists and pessimists, so just be real and practical”

[Abhilash-.]

To all westerners saying this and that should be done by India, in reality there is no real example of a democratic country of India's size making it as a developed country. China did it by autocratic rule and most of the big European and American countries are developed because of the colonial exploitation. So if India succeed in becoming a prosperous and developed nation, even if it would be taking back its natural position as a big economy, it will do that without bloodshed and exploitative colonialism.

[anooppc]

GM, Ford, and Harley lost the Indian market due to their poor customer service and long wait period for parts.
Their decline started
1) When TATA came up with good cars with 5* ratings in crash tests and better features than GM and ford, the market share of TATA increased as well as their revenue.
2) Following this, Mahindra devised such a strategy with their cars. Even Ford wanted to tie up with Mahindra, which didn't work out as Mahindra was aware of what Ford had done to Aston Martin. Their new model XUV 700 comes with a 5* rating as well as features like AWD, ADAS - Front Collision Warning, Driver Drowsiness Detection, Automatic Emergency Braking, Lane Keep Assist, and Smart Pilot Assist (Only on highways). The price of the car is around $31, 000, and Mahindra just crushed the competition.
3) For higher CC engine, Royal Enfield is the more preferred bike in India and has a cult following

[ggfammanikonda]

22 are official languages and not National. India doesn’t have a National language. Slight correction.

[servingitcold]

Bruh 😂 GM, Harley and Ford quit the company because they couldn’t compete in the indian market, not because the market is ‘minuscule’. Fact is, competition offers way more for the value that American cars do, for the same quality, and they are quicker than the Americans! Also, India makes the most number of two wheelers in the world. 350 mill middle class consumers, but no way they’d all buy cars as two wheelers are the preferred mode of transport in India

[Charvak-Atheist]

there is one more major problem that is Slow Judiciary.
If a buisness gets stuck in some lawsuit, it takes years to get it resolved.

[nameisamine]

I can’t wait for India to become a 1st world country, with high speed rail, leading in green energy, tech and manufacturing, with an increasingly highly educated population attaining middle class affluence that lifts 100s of millions of people out of poverty. There’s so much potential to be unlocked, I hope I get to see the fully developed India in my lifetime. I also love Indian film and music and would love to see their soft power spread across like the world like South Korea did with Korean film and K-pop. One day I would love to visit India and see the country’s beauty with my own eyes: Agra, Jaipur, everything! Much love from The U.K.! 🇬🇧

[EmperorTakashi]

This might seem like a strange way to gauge this. But I feel in the last 5 years I've seen a lot more people from India on the Internet. Which may be because of how much it has been spreading there in recent years. India has one of the English speaking communities even if they are not native speakers it will be interesting how that effects international and language relations.

[DipJyotiDeka]

Given how much the west have acted against India in the last few decades, it is a miracle that India has achieved what it has.
US has armed Pakistan which it has used to fight many wars against India.
US has also imposed economic sanctions on India in 1998 for conducting nuclear tests.

[balajeepratham]

One thing I would like to say here.
While China has outperformed India in the last 3 decades, India has been at 2nd ahead of all other emerging markets.
It's not that easy to pass laws in democracy and do reforms.
Our friends in developed countries know that how democracy works.
So yeah, India is an outlier - it dissapoints both optimists and pessimists

[Jondiceful]

I hope India takes off. The people deserve a better life. Fortunately, much of what makes any market hum is perception. If people perceive India as a place of opportunity, they will invest in India which will help to drive growth and prosperity. If people do not perceive India is a place of opportunity, the opposite will transpire. Not everything has to do with perception, but at this moment perception may be the single most pivotal factor. Billions if not trillions of dollars in investment are looking for a favorable place to go. China is still a great place to invest, but not for any of the reasons it once was. The cheap labor market is leaving China and has moved on to SE Asia, Africa, and even Mexico. If India can tap into that market, the influx of investment capital could easily offset some of the other pressures in India. The large English-speaking population and better geographic location for trade with Europe, the Middle East, and Africa gives Indian goods and services a slight edge over China and SE Asia. So India has the potential for a very rapid transformation. Whether or not they realize that potential depends on many factors, but the perception of how close they are to achieving that potential will almost certainly determine the pace of that transition.

[bhuvaneshs.k]

As an Indian i think this is not possible. Cuz we don't have true right wing pro capitalist govts. Even bjp is socialist left wing. No govt here in India is willing to risk land reforms, judiciary reforms etc which will help industrialization

[FPfreddyyy]

India has one very good advantage. It has a lot of coastline with many major cities along it.

[kevinwilliams]

Given China is an authoritarian dystopia, I hope India finds it's own way.

[akhilkm]

One of the thing India lacked was good road network. But now the govt realise the importance of transportation, and is now making massive autobahn like roads, connecting important cities.

[containedhurricane]

I don't think it will ever become the new "factory" of the world, because Western companies will make multiple manufacturing hubs in different countries and there are too many labor strikes in India. I believe Western companies have learned a lot from dealing with China, so I bet they will diversify their business partners

[simonpannett]

India has many educated people not working to their capacity. New technology and Urban Tech Zones could point the way forward to other regions. Foreign firms are resisted looking to do the same thing but with an "indian" company. This mindset is entrenched holding its international position back!

[zigzagto]

Truth to be told... Until 2014 India had no political stability... But this current govt. managed to bring that stability...India will change even more in the next 5-10 years..