India should focus more on manufacturing as it needs to create four crore (40 million) jobs to boost the sector and improve competitiveness vis-à-vis China, a top official of the leading management consultant McKinsey & Company said on Saturday.
Speaking on 'Improving India's manufacturing competitiveness vis-à-vis China' at a seminar in Ahmedabad, Ramesh Mangaleswaran, Principal, McKinsey & Company said China took out three crore (30 million) people out of agriculture and put them in manufacturing.
The seminar was organised by the Confederation of the Indian Industry.
He pointed out that product prices in China were 30 per cent lower than that of India and added that companies must decide whether they want to expand their market by reducing prices.
Mangaleswaran said taxes and duties are high in India as compared to China. India's labour productivity was also low and it was following China's low interest regime.
He admitted China was attracting more foreign direct investment because of its efficient infrastructure. Mangaleswaran said Gujarat could be a model state in increasing India's competitive edge with its ports and human resource.
He said India was ahead of China in skilled labour and raw materials. India and China have huge market and it was up to entrepreneurs to take the benefit of the same, he added.
UNI
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