Manufacturing Competitiveness

It is clear that in manufacturing, we are not competitive compared to China. Critical factors are cost and quality.  Though quality is not a big problem. High quality at lower cost is the challenge.

The greatest challenge in front of Indian economy is to make it lower cost.

We should do everything in our power to bring down the costs. First let us look at labour costs.  While minimum wages cannot be lowered,  we need to provide a higher standard of living to our workers.  This can be done by taking the work to their town. A person getting 10 thousands per month in Delhi is far poorer to another one getting 6 thousands in his own home town. One of the major element of costs in city is the real estate cost.

Housing for poor in villages

Once again a horrific crime in Badayun brought shame to the country. It was reported that the girls' family is landless and they went out for nature's call. 

Many politicians are going to that village.  Lots of money is being spent on these visits. Can't we think of using the money for creating permanent dwellings and toilets for the poor people in villages?

What  is the cost involved?

Let us assume we provide about 600 sqft to one family. The cost of construction is about Rs 800 per sqft. So the cost will be Rs 5 lakh approximately.  If the family is  of five people, cost is Rs 1 lakh per person.

If there are 25 crore people who need to be provided housing the total budget required is Rs 25 lakh crores.

If we make a five year plan we need Rs 5 lakh crores every year.  Can we provide this sum?