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Go East Young Man

One hundred and fifty years ago, Horace Greely famously suggested that if one was on the look for fortune and adventure

Go West Young Man. Perhaps today he would suggest that one Go East.  India has been known as an English speaking call center, now it is moving into manufacturing. But as Jim Rogers suggested in his book, it’s not easy, click to read why.  This reflects more globalization pains.

Now stop and think, with all the infrastructure problems why are companies moving to India? Is it just low cost manufacturing?

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2 responses to “Go East Young Man”

  1. April Y Avatar
    April Y

    I would say companies are trying to get there early while it is still cheap. They have a willing labor market, low tax rates, and guarantees from the Indian government of little interference in the exporting of their goods. There is a limited resource in the land available, so getting in early will provide the companies with prime real estate. With time and the continual investment of outside firms, India’s infrastructure will improve and become more of a selling point to get even more firms to come. So yes, I do believe that the cheap manufacturing is the reason for the moves, because it is always about how can a firm lower its costs in order to increase their margin, and India is the perfect place for these companies to do so right now.

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  2. Dennis Elam Avatar
    Dennis Elam

    I am not betting on Indian infrastructure improving very quickly My point is that companies are willing to endure lack fo roads and electricityu as well as a dicey legal system in exchange for escaping the omni present US Govt and all its regulations.

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