it is cheaper to manufacture in India

Why are the jobs coming to India? This is one question dogging everyone from politicians, businessmen, students, scientist and IT professionals to the common man on the street.

A fall out of Globalization, outsourcing is being discussed around the world from a renewed perspective, sometimes with pleasure and at other times with fury, depending upon which side of outsourcing the person is.

Today it has turned into a major political issue. Outsourcing that has been prevalent for a long time now has never been at the center of a storm of these dimensions. At the time when jobs were shifting south from the USA to Mexico dust had blown but perhaps it was just a warning of the coming storm that has engulfed American life affecting far off places like India and attracting the attention of the world.

So why is this such a hot topic? The phenomenon seems to have been triggered off by the emergence of the Indian economy on the global scene and its ability to attract jobs. Coupled with this is the downturn in the US economy and loss of jobs in that country. Even though these are two different things that happened simultaneously, they sadly managed to be mixed up. People are groping to understand the phenomenon and are still in the process of disentangling themselves from the wave of confusion that exists.

The answer is simple. It is cheaper to manufacture products in india in the unorganized sector.

1. No labour unions. Hence the worker works on 12 hour shifts for a wage of Rs 3,000/- (60 dollars) per month

2. No requirement for annual increments (not mandatory)

3. No compensation to injured workers on work related acccidents

4. No hassles of getting Pollution Control Board approvals for polluting industries

Alarmed by the loss of jobs to India and China
the US raised the Human Rights bogey

the americans started picketing the retail stores for buying cheap from india

WAL Mart and others insisted that the suppliers be SA 8000 certified

SOCIAL ACCOUNTABILITY REQUIREMENTS:
1. No child labour2. No forced labour3. Health and safety at the workplace 4. Freedom of association and right to collective bargaining5. No discrimination on race, creed, caste and sex6. Disciplinary practices7. Working Hours8. Remuneration 9. Management Systems


In the process manufacturers in India kicked off the child labourers who now starve along with their families, and applied for SA 8000 certification

the other requirements cud be easily fixed

with excerpts from http://www.mapsofindia.com/outsourcing-to-india/jobs-outsourcing.html

PS: The organized sector in India too felt the heat and were forced to lay off their workers by VRS schemes and outsource fron the unorganized sector (SSI)