Points On Foxconn

Foxconn intends outright to become a manufacturing powerhouse, Just like India. Foxconn
is trying to exploit the same factors which made China a manufacturing giant:
 cheap labor
 brilliant infrastructure.

Out of these two conditions, India fulfills cheap labor quite efficiently but falls behind in
terms of infrastructure required.

It feels like every country has its phase of creating the perfect condition to become a great
producer of goods. It requires certain condition to be fulfilled for it to happen; namely –
cheap skilled labor, technological advancement, world class infrastructure level,
government inclination. It feels like all these factors have to come all together in order for a
country to become a manufacturing giant. China surpasses these hurdles but as the country
develops and the living standards of their people increase, the workers naturally demand
higher wages, which in turn forces other less developed countries to jump in and take
advantage of even cheaper labor. This is also evident from the case pointed out to Indian
labor being considered much cheaper than Chinese labor.

“Make in India” initiative displays the government’s inclination for boosting the
manufacturing sector. In terms of technology, we are bit behind, but the gap has been
closing pretty fast. The main issue that is currently in view is the infrastructure, or rather the
lack of. India must make breakthrough innovations to develop its rail, roads, ports, and
other infrastructures of the economy.

Foxconn’s outside-the-box thinking of hiring women workers is also very commendable.

They were able to precisely thrift through the Indian social and demographic situation and
used it to their advantage. The only flipside to these workers is that most of them live in
turbid situations, so a better facility or a contingency plan for temporary shelters can be
sought after for the betterment of living standards.