Recently, neighbouring countries have questioned whether India can accommodate US EV giants like Tesla in place of China in the fast-changing environment of electric vehicle (EV) manufacturing. Let’s examine the china vs india facts.
Global Manufacturing comparison
When we look at how things are made around the world, it’s important to compare big countries like China and India.China makes the most stuff in the world, with about 28% of everything made globally. India is also a big player, but it’s in 5th place, making about 3.3% of the world’s stuff.
China makes a lot more cars than India does. They make around 30 million cars each year, while India makes only about 5 million. This shows that China is really good at making cars.
When it comes to selling stuff to other countries, both India and China don’t charge any extra taxes on exports. This helps businesses in these countries sell things to people in other parts of the world without any extra costs.
Bureaucracy
When it comes to how smoothly things get done by the government, India ranks 55th, while China is a bit lower at 83rd. This means India is a bit better at getting things done efficiently.
When it comes to corruption, both India and China are in the same range, in the 80s. There’s only a small difference of four places between them.
For starting and running businesses, China is seen as really good, even called “very easy.” India is also good, but it’s just in the “easy” category. This shows that both countries are pretty good places for businesses to thrive.
Workforce & skills
India boasts highly skilled workers in tech sectors but currently lags behind the skilled workers sector.
India is expected to surpass China by around 2025 for the number of workers (15-64 age group) in the millions.
In India, development and migration are free and more dispersed. Worse, many of them are employed as casual workers with little access to most statutory benefits and are largely left to take care of themselves.
India’s high casual worker rate allows free migration and less dependency on social benefits. This is a positive factor for manufacturing industries and a growing worker base.
Conclusions
Despite all negative indicators for India, the development speed has been significant in the last 8 years. The decline in population growth in China is an essential factor. The lack of EV infrastructure in India is an opportunity for most businesses.
India is poised to overtake China by 2030. Is Tesla’s strategy well thought out or half-baked based on current realities? Only time will decide.
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