How India can enter global supply chains
In the context of the growing trade friction between the US and China, one view often expressed is that it provides India with a major economic opportunity. But this opportunity, as of now, is more theoretical than real. For some years, wages in China have been rising rapidly, and consequently, low-wage jobs have been moving out — just as they did from the high-wage economies of the US, Europe, Japan, Korea and Taiwan a generation earlier — as a part of mobile global supply chains.
These jobs, whose numbers are not insignificant, are going to other destinations, rather than India, which are more attractive to investors. To get these jobs into India as part of global supply chains, we need more than ‘business as usual’.