China's Economic Growth and Expertise Present a Challenge for India
Indian authorities are having a difficult time striking a balance between their worries for national security and the pressing need for Chinese technical know-how to increase production in a variety of industries. India's stringent visa regulations for Chinese experts are impeding its economic success, even though the country acknowledges a severe skill shortage and the need for foreign knowledge to boost its manufacturing industry.
The Need for Chinese Technologists
- Recognizing the Skill Gap
Since Chinese technicians are essential to Indian firms, Indian officials have promised to grant more visas to them. The Secretary of the Department for Promotion of Industry and Internal Trade, Rajesh Kumar Singh, admitted that Chinese and Indian industrial workers and supervisors have a "significant skill gap." Chinese workers are "very productive," according to a Vellore-based shoe maker, and they can "help you produce 150 items with the same resources with which we produce 100." The chairman of India's Engineering Export Promotion Council has expressed a similar view and advocated for more visas for Chinese technicians. - Orders that go unfulfilled and idle machines
Indian companies that produce anything from electronics and engineering to footwear and textiles have bought machinery from China, but they are finding it difficult to operate it effectively without Chinese technical support. Leaders in the industry often remind government representatives that export orders are still unmet and machines are laying idle. For example, the solar manufacturing plant owned by Gautam Adani is awaiting the arrival of Chinese laborers. - Acknowledging Your Skill Deficit Is Crucial
It is noteworthy that India's skill gap has been acknowledged formally. It is evident that significant knowledge is needed for even "low-tech," labor-intensive production. China has grown its manufacturing industry over the last forty years, and its professionals are more affordable than those from other nations. The Indian government prohibits Chinese technologists because of national security concerns, which is problematic given the need for international professionals. India may rise quickly to the lower rungs of the global skills ladder with the aid of Chinese knowledge. India must take action right away to seize this chance.
Limitations on Visas and Security Issues
- Reduction in Visa Issue
200,000 visas were granted to Chinese people for travel to India in 2019, but following the fatal conflicts between Indian and Chinese forces in 2020, this number drastically decreased. Indian authorities charged the Chinese with money laundering to avoid paying taxes and breaking the terms of their visas. The quantity of visas issued to Chinese employees had decreased to 2,000 by the previous year. A mindset focused on security has taken hold, and even this year's 1,000 visas for Chinese workers in the electronics industry are being held up in a "pipeline" that is going through "intensive screening." - Strict Screening Procedures
A cabinet minister who wished to remain nameless moderated expectations by saying, "Visas will be issued for Chinese technicians and businessmen only after screening with assurance that travel conditions will not be violated," notwithstanding pledges from officials of the Commerce and Industry Ministry. This thorough vetting could put an end to the project.
The Value of International Knowledge
- East Asian Lessons
The economic history of East Asia teaches us that, when paired with a home workforce that is well-educated, foreign knowledge is essential for success. The poor quality of education in India makes the need for foreign expertise even more pressing. Foreign machinery that Korean corporations purchased in the 1980s were disassembled and reverse-engineered. Korea had nearly three decades of a strong educational foundation by then, so it required little in the way of human aid. Their main source of foreign knowledge was machine-embodied. - China's Quick Development
China had a lower foundation in education than Korea when it began its rapid rise in the early 1980s. But as a 1981 World Bank assessment noted, China's great elementary education under the Communist era had primed the nation for explosive growth. Renowned for his economic reforms and the Tiananmen Square event, Deng Xiaoping, wanted to strengthen China's indigenous capacities. He did this by sending senior policymakers on study tours abroad and by enticing foreign companies to invest in China and impart global expertise. The exchange of knowledge between local and foreign experts helped China emerge as the global center of manufacturing. - India's Deficits in Education
However, evaluations of learning outcomes reveal that Indian schools have frequently failed to teach the country's youth. In contrast, the country has built more schools and seen an increase in enrollment. Eric Hanushek of Stanford University claims that although 85% of Chinese children have the fundamental reading and math abilities needed for a worldwide economy, just 15% of Indian schoolchildren do.
The Race for the Red Queen
- China's Unceasing Progress
China, for all its imperfections, has absorbed the lesson taught by Lewis Carroll's Red Queen in "Through the Looking Glass": you have to run twice as quickly to stay in the same spot and even faster to advance. Chinese universities are among the greatest in the world, particularly in mathematics and computer science. Chinese researchers are making important strides in a number of applied sciences that are important to the advancement of industry. China is a global leader in solar energy and electric car technology, and it will be a leader in artificial intelligence as well. - Protectionism in the West
Western leaders are taking notice of China's progress and, rather than focusing on improving their own educational systems, are erecting trade barriers against Chinese imports on the grounds of unfair competition. Even under the guise of "industrial policy," such protectionism will not address the underlying problems with their educational systems. - Misplaced Hope for India
Elites in India and around the world don't seem to be able to take a cue from China. It is a mistake that economists Rohit Lamba and Raghuram Rajan have given up on creating jobs in India for the enormous global market for labor-intensive goods. They contend that India ought to ignore the little pool of excellent Indian university education in favor of concentrating on technology-enhanced service exports. Historian Mukul Kesavan's account of Delhi University's decline serves as a moving reminder of this problem.
India's Actual Situation
- Exports of Technology-Related Services Are Stuck.
India's increase in service exports linked to technology during the COVID-19 years has plateaued. It's difficult for even Indian Institutes of Technology graduates to get employment. Many IT workers in Bengaluru are currently looking for chances in the gig economy, especially in support, maintenance, and entry-level coding employment. IT jobs, which peaked at just over five million in 2023, are now declining, a concerning trend given India’s working-age population of a billion and a workforce of 600 million. - Exaggerated Economic Outlook
In spite of this, the Financial Times' Martin Wolf believes India is headed toward becoming a major player in the world economy. But India's failure to educate its youngsters and give its enormous population respectable employment implies different. Because of their advantageous positions and superior human capital, Mexico and Vietnam were able to capture the China-plus-one window, which India nearly missed. India is losing foreign investment, and its labor-intensive manufactured exports continue to account for just 1.3% of world markets—less than Vietnam's share. - Possible Losses
India will lose out on another chance for a new beginning if the slogans of national security and self-reliance prevent even the minor step of providing visas to qualified foreign specialists. Should it fail to solve its grave human capital shortage, the possibility of labor-intensive manufacturing exports will vanish once more. Instead of carrying around illusory beliefs about its position in the world, India has to concentrate on strengthening its educational system. More windows will close as the global competition for Red Queens heats up and millions more Indians wait for respectable jobs.
In summary
India needs to dramatically improve domestic education while balancing national security concerns with the pressing need for Chinese knowledge in order to harness economic growth and compete globally. To ensure a prosperous future and provide its large people with respectable jobs, it is imperative to embrace foreign knowledge and rectify educational deficiencies.