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India may be the world leader in outsourcing IT and software services field but in manufacturing China is by far the clear winner. There is a perception that labor in China is cheapest, but leading strategist George Zhibin Gu is on the opinion that labor in India is by and large 50% cheaper than China but still China rules, why??

He feels that China in many aspects is ahead of India in manufacturing. Firstly, when India does not even have an effective manufacturing base at all, forget of having chain of key component suppliers, or for that matter logistics chain, infrastructure etc. China on the other hand over last 26 years has built up a complete business chain

Quoting George Zhibin Gu

For example, in consumer electronics you can set up your shop in Guangdong, then you get more than 10,000 component makers. For example, Sony alone has more than [3,000] China based component makers. Here, you need to know that these component makers come from both Chinese companies and multinationals. So, Sony’s 3,000 come from the Chinese, the Japanese, Koreans and Europeans, and American suppliers, always in China - actually, in one province. That’s the kind of effectiveness and efficiency China has, but in India, and even in Europe you don’t have that kind of advantage.

I found the interview a bit inclined towards China. Yes, its a fact that India lags behind, but not to the extent its been described here. May I am worng, I dont know. Your comments are welcome. 

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