Oh? Their textile industry employs 20,000,000 Indians, and account for one third of India's exports.
Their computer industry has a compound growth rate of 50% during the last five years - and most of the demand for floppy drives, dot matirix printers, keyboards, CRT's and other components is from indigenous production.
Their software industry is working on AI and fifth generation systems.
India is a major exporter of heavy and light engineering goods. They also make their own construction equipment.
Don't believe it? Here's a link to their embassy.
This is an economy that you claim has no jobs to outsource? They claim they do.
And if we're to believe Wildman Mankiw, all they must do to become rich is to export those jobs. Hey, if it's good for us, surely it would be good for them!
We provide them the remedial jobs.
Umm-hmm. Like leading edge computer research. Sure, sounds remedial to me. (/sarcasm)
They then make money and BUY our products.
In January, 2004 we exported $342.3 million USD worth of products to India.
We imported $1,180.0 million USD worth of products from India.
This means we have a trade deficit for a single month of $837.7 million USD. This is part of a growing deficit that goes on month by month over years.
Source: Census bureau.
I believe this comes under the general category "helluva deal".
Get this...we give them a buy ecoonomy of our products.
I'll tell you what. You give me your money. I'll buy your services one of these days, maybe. Sound like a plan?
We don't want them to be the one's that own the jobs - right? Then they own the innovation...control the future.
America should control the innovation and then control the future! Think this over folks.
I have a better idea. Let's keep control of both the innovation and the jobs.
There is no way that India will ever overtake us, unless we become isolationists and force them too!!!
Let's see now....a billion smart, hard working people. Lots of rigorous education. And they control the jobs, and thus the revenue and economic power implied thereby. They are overtaking us now, today - and if we don't protect ourselves, they will compete with China to become the world's preeminent power. The US will, then, become a second-rate has-been.
Think this over carefully, for it is the destiny you are choosing.
Hint: The US dollar is in decline. Our foreign and domestic debt are accelerating. And inflation - as measured by the the spot prices of commodities over the past year - may be rekindling. Unless the goal is to transform the US into a mere third-world plantation state, think very carefully about the path we are walking.
Maybe the future is not so bleak. Radical free trade/privatization (R&D was taxpayer funded)/asset sell-out policy is the one tried earlier in Russia under name of "shock therapy". It did lead to the lower standard of living (including much shorter life expectancy) for the general population and enrichment of the few reform minded oligarchs (super-thiefs).
The process of free market looting ended in a 1998 crisis when the financial system collapsed. It lead to the correction. Economical correction was done by free market itself when the devalued currency made it too expensive to buy imported goods. Political correction was stimulated by the NATO attack on Yugoslavia (NATO was emboldened by perceived Russian weakness) and by Islamofascist invasion of Dagestan combined with terrorist attacks all over Russia.
Now Russia is in relatively good shape and going forward. There is not reason why America which is much stronger would not come of analogical crisis regenerated.
Declining currency, growing discontent of the population and greater willingness to prosecute reform minded oligarchs are the early signs of coming correction. Who will be the American Putin is the question.
"What does not destroy me, makes me stronger."
(Nietzsche Twilight Of The Idols - 8)