- India:
- Manufacturing contributes 16% to GDP.
- Labor productivity is 4-5 times less than China/Thailand.
- Uncompetitive at low-skilled manufacturing.
- Faces challenges in land acquisition, transport, power, labor laws.
- China:
- Rapid industrialization, moving hundreds of millions from farms to cities.
- Main engine of global growth since 2002.
- High labor productivity and competitive advantage.
- Wages have been rising, eroding some competitive advantage.
- Southeast Asian Countries:
- The text implies they followed a successful export-led growth path.
- India’s manufacturing exports will have to compete with them.
- India has natural advantages of a big labor pool and large domestic market.