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What would it take for India to become the factory of the world?
In the world of global manufacturing, China is the undisputed champion. But on its doorstep lies a huge country vying2 to become the world's next high-tech3 factory for the world: India.
A MART?NEZ, HOST:
China has dominated global manufacturing for more than a decade. However, a challenger could be emerging. Adrian Ma and Darian Woods from our daily economics podcast, The Indicator4, lay out a case for India becoming the next high-tech factory for the world.
DARIAN WOODS, BYLINE5: There are several reasons why India might or might not become the next big global manufacturing hub. Steven Tseng is a senior analyst6 at Bloomberg Intelligence, focusing on tech hardware.
STEVEN TSENG: In the near future, it is going to be difficult. But in the longer term, it's definitely possible.
WOODS: Steven lists a bunch of pros7 and cons8 for India. So first, the positives - and we start with the fact that India is not China. Leaders of a Western company looking for a manufacturing base might look at the trade war between the U.S. and China. And they might remember China's heavy-handed lockdowns, and they might worry about how geopolitical tension with the U.S. might play out.
ADRIAN MA, BYLINE: Second, India has its population. The U.N. estimates India will officially be the most populous9 country in the world this year, and its demographics skew much younger. China's median age is 38, while India's is only 28, and that means more people to potentially work in factories.
WOODS: Third, India's government is subsidizing large companies to move their manufacturing to India. Those are the positives.
MA: Now for, well, the negatives. First, education. Now, India does boast some of the best engineering education in the world at its top end. But the adult literacy rate in India is about 74% versus10 about 97% in China.
WOODS: Tariffs11 are the second headwind facing India if it's to really compete with China in high-tech manufacturing. You have so many imported components12 for things like smartphones. So when you're making them, any frictions13 and added expenses in importing parts makes the country less attractive.
MA: The third negative for India is its infrastructure14. Only 5% of the roads are highways, while 40% of roads are dirt roads. And Steven says India's decentralized political system makes building new transport connections more difficult.
TSENG: If you're building some sort of railroad or highway from province A to province B, if province B has some issue with that, it can take years to sort out the differences.
WOODS: And ensuring movement is critical not just for getting components and products shipped, but for factory inspections15.
MA: Now, there is a fourth obstacle, which is language. India is a vast and diverse country where people speak tons of different languages, which brings us to our final obstacle - discrimination.
WOODS: Discrimination might be in the form of religious animosity, or it might be in other forms. India has a class system of castes. That can mean that people in lower castes are passed over for jobs that they're qualified16 for. Or if they're, for instance, given a supervisory role, they might not be listened to.
MA: But with all that said, multinational17 companies are setting up shop in India. Samsung has been rapidly increasing its factories there. And Apple CEO Tim Cook said in a recent earnings18 call that he is, quote, "very bullish on India."
WOODS: India can take on more manufacturing now, but everyone we spoke19 to said it will take a lot of work and a 10- or 20-year period to get close to where China is today. Darian Woods.
MA: Adrian Ma, NPR News.
1 transcript | |
n.抄本,誊本,副本,肄业证书 | |
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2 vying | |
adj.竞争的;比赛的 | |
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3 high-tech | |
adj.高科技的 | |
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4 indicator | |
n.指标;指示物,指示者;指示器 | |
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5 byline | |
n.署名;v.署名 | |
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6 analyst | |
n.分析家,化验员;心理分析学家 | |
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7 pros | |
abbr.prosecuting 起诉;prosecutor 起诉人;professionals 自由职业者;proscenium (舞台)前部n.赞成的意见( pro的名词复数 );赞成的理由;抵偿物;交换物 | |
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8 cons | |
n.欺骗,骗局( con的名词复数 )v.诈骗,哄骗( con的第三人称单数 ) | |
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9 populous | |
adj.人口稠密的,人口众多的 | |
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10 versus | |
prep.以…为对手,对;与…相比之下 | |
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11 tariffs | |
关税制度; 关税( tariff的名词复数 ); 关税表; (旅馆或饭店等的)收费表; 量刑标准 | |
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12 components | |
(机器、设备等的)构成要素,零件,成分; 成分( component的名词复数 ); [物理化学]组分; [数学]分量; (混合物的)组成部分 | |
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13 frictions | |
n.摩擦( friction的名词复数 );摩擦力;冲突;不和 | |
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14 infrastructure | |
n.下部构造,下部组织,基础结构,基础设施 | |
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15 inspections | |
n.检查( inspection的名词复数 );检验;视察;检阅 | |
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16 qualified | |
adj.合格的,有资格的,胜任的,有限制的 | |
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17 multinational | |
adj.多国的,多种国籍的;n.多国籍公司,跨国公司 | |
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18 earnings | |
n.工资收人;利润,利益,所得 | |
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19 spoke | |
n.(车轮的)辐条;轮辐;破坏某人的计划;阻挠某人的行动 v.讲,谈(speak的过去式);说;演说;从某种观点来说 | |
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