The Hindu Editorial of 30 July 2024 For UPSC & Other Govt. Exams

Editorial: The problem with India’s blocking of the Chinese

Indian authorities’ recent promise to issue more visas to Chinese technicians highlights a significant skill gap between Chinese and Indian factory supervisors and workers. The reasons behind the need for Chinese expertise, the implications of restrictive visa policies, and the broader impact on India’s economic growth.

Skill Gap and Productivity

Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade, acknowledged a substantial skill gap in Indian factories. A Vellore-based shoe manufacturer illustrated this by comparing productivity: Chinese professionals can produce 150 items with the same resources that Indian workers use to produce 100. This productivity boost is crucial for industries from footwear and textiles to engineering and electronics, which have invested in Chinese machinery but struggle to utilize it efficiently without Chinese technical support.

Impact of Visa Restrictions

Despite the promise of more visas, the process remains slow and cumbersome due to national security concerns. In 2019, Chinese nationals received 200,000 visas, but this number plummeted to 2,000 last year following clashes between Indian and Chinese troops in 2020. Current restrictions have led to machines lying idle and unfulfilled export orders, as highlighted by leaders of Indian industry associations and large businesses like Gautam Adani’s solar manufacturing facility.

National Security Concerns vs. Economic Needs

The tension between national security concerns and economic needs is evident. While the government promotes “Atmanirbhar Bharat” (self-reliant India), the economy increasingly relies on foreign expertise, especially from China. The necessity for Chinese technicians underscores the inadequacy of India’s domestic education system in producing a skilled workforce capable of operating and maintaining advanced machinery.

Lessons from East Asia

East Asian economic history, particularly the experiences of Korea and China, demonstrates that integrating foreign knowledge with a robust domestic education system is pivotal for development. Korea used foreign machines to advance its technology with minimal human assistance due to its strong educational foundation. China, starting with a weaker educational base, rapidly developed by combining foreign expertise with improvements in domestic education.

Educational Deficits and Economic Implications

India’s education system, despite increased enrollment, fails to equip students with necessary skills. Only about 15% of Indian school students possess basic reading and arithmetic skills, compared to 85% of Chinese students. China’s success in international assessments like the Programme for International Student Assessment (PISA) contrasts sharply with India’s poor performance.

Current Economic Realities and Future Prospects

India’s technology-related service exports have stagnated, and even top-tier graduates struggle to find employment. The vision of India becoming a global economic superpower, as predicted by some international analysts, appears unrealistic without addressing fundamental educational deficiencies. Mexico and Vietnam have already capitalized on the “China-plus-one” strategy, attracting foreign investment due to their strategic locations and superior human capital.

Conclusion

To avoid missing further opportunities for economic growth, India must address its skill deficit by improving its education system and allowing greater foreign technical assistance. Restrictive visa policies, driven by national security concerns, could hinder India’s ability to integrate into the global economy and achieve sustained growth. The global race for economic advancement is intensifying, and India must act swiftly to enhance its human capital and leverage foreign expertise effectively.