In order to create jobs on a large scale, India should emerge as an attractive destination for big manufacturing firms that are moving out China because of rising wages and demographic transition, NITI Aayog Vice Chairman Arvind Panagariya said.
“It seems that there is going to be massive shift in the large scale firms (from China). India ought to be the destination (for them). It is very good time for India (to attract these firms),” Panagariya said addressing a CII conference here.
“The demographic transition (ageing population) in China is opposite of that in India. The workforce is declining in China. So the labour intensive industries move out of China and go somewhere else,” he said.
“Today you observe is that wages in China rising and already these are about two to three times. In manufacturing if you convert these to Indian rupees then the average wage is about Rs five lakh (every year),” he added.
Citing an example of Foxconn which employs 1.3 million workers, he said: “In its single establishment, you see 20,000 workers. These are the kind of firms those are moving out (of China). There is a question. Where would they go? Right now some are going to Vietnam, Bangladesh, Sri Lanka and some are coming to India also.”
Panagariya was of the view that if India wants transformation then it needs to bring workers into non- agriculture areas.