Skip to comments.India to Western Tech Firms: If You Want To Sell It Here, Build It Here
Posted on 01/08/2013 7:11:11 AM PST by SeekAndFind
NEW DELHIIndia has proposed sweeping curbs on the import of technology products ranging from laptops to Wi-Fi devices to computer-network equipment.
The proposed regulations, which were reviewed by The Wall Street Journal, would create an expansive "Buy India" mandate requiring a large percentage of the high-tech goods sold in the country to be manufactured locally.
If implemented, the rules could wreak havoc on the business plans of a wide range of U.S. and other foreign firms, including hardware-makers Cisco Systems Inc. CSCO and Dell DELL Inc.; services companies such as International Business Machines IBM Corp.; and telecom-gear suppliers such as Nokia Siemens Networks B.V. and Telefon AB L.M. Ericsson.
To comply with the rules, foreign companies would have to set up factories in India quicklypossibly as soon as Aprilor significantly expand their existing manufacturing capacity in a country where the infrastructure is poor and building plants can take years because of red tape and other hassles.
Or they could face the loss of current businesscollectively the industries affected generate billions of dollars in sales here annuallyand the chance to tap into what is expected to be a booming technology market in years to come. Spending in India's technology and electronics market is expected to reach about $400 billion by 2020, up from $45 billion in 2009.
The rules are in draft form, and their sweep may reflect some brinkmanship on the part of the Indian government, which wants foreign firms to increase manufacturing in India. The government could still choose to delay or scale back its plan.
Still, U.S. lobbyists and industry are strenuously opposing the proposals, which have quickly become the most serious point of tension in commercial relations between the two countries. The proposals also aren't the U.S. government's only concern.
(Excerpt) Read more at online.wsj.com ...
Sounds like its time to reduce the numbers of tech visas to the US and bring home some of those outsourced call center jobs.
“Wester Tech Firms to India: If You Want To Build It There, Invent It There”
Oh wait, nevermind...They can’t invent it there. Simply lacking the ability.
Another captive market for the Western industrial giants. *shrug*
RE: bring home some of those outsourced call center jobs
The Philippines is now overtaking India as the call center capital of the world.
I saw this in the 80’s when I was in college in computer science and was dismissed by many when I said we are basically giving away our edge by allowing foreigners en masse to come here and go to school and then watch them go home taking our tech with them. They work just long enough to get some experience and leave, unless they get hooked on our lifestyle, then instead they just ship our knowledge home. Didn’t help that BJ Bill gave away loads to the ChiComs with no ramifications to him.
I also said that we are stupid to believe that a pure global economy will benefit the US because other countries don’t play by our rules. I was called a protectionist.
As a side note I can say that most software written in India had to be refactored once it came home because it sucked.
Chickens coming home to roost.
Just wait till China gets in on this game.
He was 20 years ahead of his time, but Ross Perot was exactly right on this globalization nonsense and that sucking sound of jobs leaving America.
This is the dumbest policy proposal I heard about in a long time. Talk about committing suicide. Why would India want to starve the country of cutting edge technologies? Idiotic.
All the talk of globalism was a load, the economic equivelent of Fukuyama's 'end of history' crap. It was always about the next quarter's dividend with no thought to what might result ten years down the road.
I guess we’ll see. But if it works for India (i.e., manufacturers comply and build it there), then the U.S. should do the same.
India has always been thus.
RE: But if it works for India
What does “works” mean in economic terms?
Will it make them more prosperous?
Will it encourage more foreign companies to set up shop in India, or will it scare them away?
What are the cost/benefits of such a policy?
That is what I want to know when it comes to using the word “works”.
All of those things, yes. It makes for a nice economic experiment.
When he was running, he displayed a telling photograph of a Ford plant in Mexico. He asked, "What's wrong with this picture?" and to this day, I am embarrassed to say I didn't see it until he pointed out the glaringly obvious: "There is no parking lot. Unlike Americans, the workers can't afford the product they build. They are bussed in from the neighboring barrios."
We're pretty close to that now for what remains.
India’s biggest problem is not talent or enough willing hard workers. India’s biggest problem is it’s infrastructure as regards both transportation and energy.
Political moves to bring more “federalism” into Indian governance could help break some of the infrastructure bottlenecks.
If India focused more political energy on that than it seems willing to put into protectist measures it would find less popular incentive for those protectionist measures as more foreign firms WILLINGLY chose to make investments in India and more Indians became employees of those firms.
It won’t work. If the country was a good place to manufacture, it would already be happening. Same way, if US was a good labor market, then labor would be forming here. Artificially forcing the issue by mandates is just going to be disaster.
Yeah, but many people here think that's a GOOD thing.
China has the same policy. That’s why I lost my previous job last year.
Its not so much of a protectionist measure. There is no “domestic industry” that they are trying to protect here. Its just a condition that if you want access to Indian market then you must also create some manufacturing jobs there. China had the exact same policy for years. No one talks about but look where they are today.
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