Its not exactly hidden but some business owner openly stated he does manufacturing in China coz everything is already there. The entire supply chain can be placed in a few provinces where everything is close by. The costs are relatively cheap so when you combine that with an ideal supply chain, you don't wanna move. The idea people will just pack up and go to save some costs is easier said than done. I think they tried doing that with India and realize they can't make the components. So now they just do the assembly and final stage stuff there while leaving the harder component building etc to China. As long as it still qualifies as "made in India" to avoid tariffs, its all good.This is a common fallacy from countries that don't manufacture anything.
People take for granted what they can buy from China, without any understanding of the depth of complexity that goes into making them.
They then convince themselves they can make it themselves, it might just be more expensive, which can be simply solved by tariffs.
But reality is they have no idea how deep the supply chain goes, they have no idea how many other things they need to make first, what they need to make to make those other things first, what materials are needed to make them, what tools they need to make those materials, and this repeats for dozens and dozens of layers even for the simplest products.
The fundamentally logical fallacy is the false belief that China is simply the most competitive manufacturer, when the truth is China CREATED the world we live in, that the world we live in could never have existed without China, and the world we live in would cease to exist without China.
Reminds me of my post a while back.I could be wrong on this, probably am, but I really thought that the percentage of the population working the land to survive had gone up over these years.
I think I remember it was 40% then it declined to somewhere in 35% maybe, but when I checked a few months ago, the Indian government said 42% of the population was still living off the land.
The Industrial Revolution was over a 100 years ago. That passed India by. They call that the first industrial revolution.
The second industrial revolution was basically the developments in manufacturing during the post war boom. That was when material wealth really accelerated in the Western countries, lifting their people into higher standards of living, such as modern life as we know it today, started from that era. The second industrial revolution basically passed India by too. It also pass on by China, with the Great Proletariat Cultural Revolution that got in the way.
The third industrial revolution so they call it was basically was the internet and vast increases in computing power that was affordable, changing society and the means of production. This internet revolution basically passed on by India, except for a few companies. The point about the previous industrial revolution was that it lifted almost all of the people in a country out of a poorer condition to a richer condition. That did not happen in India. As for China, this is where they got into the game and became a player.
The fourth industrial revolution, let's call it AI and robotics, since it is ongoing was we watch the world go by, clearly there are only two countries duking it out, and one seems have a lead in the latter, and probably equal in the former, for now at least.
China took full advantage of the third industrial revolution, transforming itself. It missed the bus for the first and second, due to various historical reasons. Seems to me, India missed the bus for all three. They could not transform their society, as 42% of the people still living off the land.
This next industrial revolution of AI and robotics, is the game being played here, to industrialized for today, means the factory has to be competitive, which means it needs AI and robotics. The AI part, everyone has DeepSeek, so in a way there is a level playing field. The robotics require precision parts, which India lacks.
So, it is not nice to say, but I am convinced India will miss the bus again for the fourth industrial revolution. Sure, there will be some successful India companies, but the point of when we that about industrialization we cannot escape history, which is the industrial revolutions and its impact on society which lifted people into higher standards of living.
That is India. They got to do something for themselves, instead of trying to have everyone leave the country. First, second, third, fourth, industrial revolution, they got to try to get into the game!
But, no. All we hear is yap yap yap, about nothing!
[rant][/rant]
My apologies. Once I started with the industrial revolution talk, the rant ranted off on it own! LOL!
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Things have not gotten better. In fact they have gotten worse since Trump decided to Tarff India 50% and is demanding India let in outsiders for agriculture. So when you see all those farmers in India protesting against Trump and tariffs so intensely, now you can see why. Attacking the very stressed agriculture sector in India really hits a nerve there.