India as a global factory: A project seventy years in the making

A potential watershed event in India’s modern economic history passed by recently. A state of the art, globally recognized, electronic product is to be made in India for export to the world.

Apple announced plans to make its latest phone model – iPhone 14 – in India, a significant milestone in the company’s strategy to diversify manufacturing outside of China.

Five percent of iPhone 14 production is expected to shift to the country this year, much sooner than analysts had anticipated.

While Apple is big, a more telling example of India’s potential is at the end of this post. But before that, how did India, a country that struggled to feed itself in the 1950s, get into the running for ‘factory of the world’ ?

In 1950, less than 1% of Indian college students studied science and engineering. By 2022, this number had risen to more than 30%. In fact, science and engineering have become so popular in India today, that a counter culture has arisen in the form of movies like 3 Idiots. Back in 1950, India’s best students were focused on subjects like law and social sciences, primed to manage the Empire. In fact, some have remarked that the independence movement was a result of the British producing too many lawyers in India.

Since independence, a concerted effort has been made by the Indian state to popularize science and engineering. This was done under the aegis of spreading a ‘scientific temper’, starting with the establishment of Vigyan Mandir in 1953. Subsequently, following in the legacy of medieval India’s Jantar Mantars, Nehru planetariums were established in major Indian cities. Further, the establishment of the IIT system gave a formal structure and high standard to engineering education. In 1976, the cultivation of scientific temper was included as a fundamental duty in the Constitution.

By the late 1970s, India’s growing pool of scientists and engineers had attracted attention from abroad, specifically Japanese automakers. This resulted in a dramatic increase in India’s automobile production, more than doubling from 700,000 to 2 million in the 1980s.An entire ecosystem of vendors producing automobile components came up around Suzuki’s Gurgaon factory. It is perhaps surprising that the Indian government did not think about replicating this success in the electronics sector. This oversight turned out to be an enormous missed opportunity.

The post 1990 period saw an acceleration in India’s economic growth, with the software and IT sector taking a prime position both in the export numbers and the economic narrative. However, India was a manufacturing star as well, particularly its pharma, petrochemical and automobile industries.

However, its potential in the wider manufacturing arena remained unrealized and indeed unrecognized. The late 2010s produced new exigencies in the global order, with Western countries trying to pivot away from their dependence on China. In this process, India has emerged as the only real alternative to achieve the technical complexity and economies of scale demanded by modern industry.

An equally important turn of events has been the precipitous decline in India-China relations. If Chinese support for Pakistan had made Indians wary of the CCP, its direct clashes with India on the border have made China enemy number one in the Indian public’s eye. There is a determination at the political and public level to not depend on Chinese manufacturing imports. This mark has already been achieved for toys, cell phones and PPE. Make no mistake, India wants to bring Chinese imports down to zero. This is what ‘Atma Nirbhar Bharat’ (self reliant India) really means.

On the other hand, Western business seems keen to move out of China. The LA Times describes the experience of one European manufacturer to move away from China,

In 2019, he began assessing the possibility of moving some manufacturing capabilities to Vietnam. But he abandoned the plan eight months later after price increases for about half of the company’s projects upset his customers. Product development also took longer — one prototype that would have been completed in three weeks in China required six months in Vietnam.

A review of other countries in Southeast Asia proved even less fruitful, he said.

By late 2020, Gaussorgues turned farther afield — to India. The local electronics and automotive ecosystem offered lower manufacturing costs and easy access to parts. With five employees so far, he aims to start assembly work next year, and hopes to host the majority of manufacturing there after five years.

What is important to note here is that India being able provide an alternative to China is not about the population. SE Asia, where the person in the article first when to has enormously populated countries, all with fantastic port access. India is able to provide an alternative because of the consistent emphasis on science and technology education over the past 70 years.

If you build it, they will come. Eventually.

The Economic History of the American Empire

 

Every time I used to play a strategy video game, my mind was firstly on money. Creating an income stream as well as buildings and units to magnify that income stream was the primary priority of my gameplay. Only then could I exercise my will and wrath on the codes of computer programming that were my enemies. I think recent history has shown us this is a powerful stratagem, especially on this side of the Atlantic.

As colony became country, America would dedicate itself to capitalism. In 1790, the US was a paltry nation with a population of 3.9 million spread across a vast and wild land. Only 7 cities had a population of over 5000 while 12 tipped over 2500; the rest found home in the wilderness. The inheritor of the great city of Rome was essentially one huge countryside. Yet by 1885, the US was nearing 60 million people and accounted for the production of 28.9% of global manufactured goods. Fast forward to today, and we have become an economic superpower never before seen. Only recently has the Middle Kingdom of the East challenged the writ of Washington, and it is still some ways away from being able to engage in a full on confrontation.

To understand American might, you must understand American economics. To understand American economics, you must understand American history.

Let’s turn back the pages.

Continue reading The Economic History of the American Empire

China, strong government, free society, India, weak government, strong society

In our discussion on the podcast, Abhinav talked about China and India in relation to society vs. government. I stumbled on this chart from Pew that illustrates it.

China’s government controls religion much more than India’s government. But on a personal level, the Chinese have much more freedom in their religious identity. Indians are simply not equipped to understand how religion does not have corporate power as an identity in the same way in East Asia, which means the stakes for individual religious experimentation are far lower.

Browncast Episode 108: Harsh Gupta on the India-China Conflict and Going Long India

Another BP Podcast is up. You can listen on LibsynAppleSpotify,  and Stitcher (and a variety of other platforms). Probably the easiest way to keep up the podcast since we don’t have a regular schedule is to subscribe to one of the links above!

You can also support the podcast as a patron. The primary benefit now is that you get the podcasts considerably earlier than everyone else. This website isn’t about shaking the cup, but I have noticed that the number of patrons plateaued a long time ago.

I would though appreciate more positive reviews! Alton Brown’s “Browncast” has 30 reviews on Stitcher alone! Help make us the biggest browncast! At least at some point.

Harsh Gupta | The Indian Express

This episode features Omar, Mukunda, and Akshar talking to Harsh Gupta, an investor and author. We discuss the big picture geopolitics of the Galwan clash in Ladakh, Indian civilization, and why Harsh is going long on India. Some positive vibes in a trying time for many!

 

The Elephant and the Dragon

This comment reflects in many ways important elements about how and why the Chinese view the Indians as they do:

… your question has answers in two periods. The second and most recent was during the cold war, shaped by Chinese elite (diplomatic) interaction with their Indian counterparts during this period who came to see Indians as unserious prevaricators. Big talkers and little doers, whether or not you agree with this assumption, it is what drives Chinese elite opinion today.

The first and older break was an earlier schism in worldview at the dawn of the 20th century when Chinese elites chose to take the path of Darwinian materialism towards national salvation. This meant radical politics and a restructuring of Chinese society towards any ends at any cost as long as it meant material prosperity and power. This left China lurching between fascism and communism. At the same time they came to view simultaneous Indian political trends, another vast nation under Western power, as being embodied by Tagore and Gandhi. That is focused towards traditionalism and eastern metaphysics as a path to revival. This is again may or may not be true but it became the default opinion. This was actually shared by elements of the Chinese elites as well, though the losing faction. The winners of the debate viewed such a policy as childish escapism verging on nihilistic passivity in the face of real threats and India, as the eidolon of such defeated views became tarred by association.

As I have noted before, Adam K. Webb’s Beyond the Global Culture War highlights attempts by early 20th century Asian traditionalists to coordinate. Some of the same characters appear in Mark Sedgwick’s Against the Modern World: Traditionalism and the Secret Intellectual History of the Twentieth Century. For all the influence of Fabian socialism on Nehru and the early leaders of India, nothing on the scale of what happened in China to the traditional society occurred in India.

But today as many Chinese transition to post-materialism they are looking back to their own past. This is natural. But the past destroyed is not so easy to access and rebuild.

Addendum: Chinese liberals and progressives of the early 20th century adopted and modified racial theory from Europeans.

Browncast Episode 91: Jacob Shapiro on the EU, China, and the Geopolitical Impacts of Coronavirus

Another BP Podcast is up. You can listen on LibsynAppleSpotify,  and Stitcher (and a variety of other platforms). Probably the easiest way to keep up the podcast since we don’t have a regular schedule is to subscribe to one of the links above!

You can also support the podcast as a patron. The primary benefit now is that you get the podcasts considerably earlier than everyone else. This website isn’t about shaking the cup, but I have noticed that the number of patrons plateaued a long time ago.

I would though appreciate more positive reviews! Alton Brown’s “Browncast” has 30 reviews on Stitcher alone! Help make us the biggest browncast! At least at some point.

This episode features Omar, Mukunda, and Akshar talking to Jacob Shapiro, a very knowledgable geopolitical analyst, where we have a free ranging and free flowing conversation about various topics like the state (or lack of) the EU, Chinese diplomacy, Turkish ambitions, and the question of American dominance amongst other issues. You can find him on his Twitter where he’s always giving great, nuanced perspectives on complicated geopolitics with particularly great takes from his newsletter.

Why did so many BAME (Black, Asian and Minority Ethnic) voted Tory? (a)

This is a follow up to:

Why did so many BAME (Black, Asian and Minority Ethnic) voted Tory?

It appears that Jews, Indian and African Britons abandoned Labour in droves and voted for other political parties. Would be curious to learn who they voted for. Suspect many voted for the Liberal Democrats.

As described by Veedu Vidz in the above previous Brown Pundit post, moderate muslims also appear to have abandoned Labour en mass. Who did moderate muslims vote for?

Are there any English exit polls? [Updated with this exit poll hat trip Ali Choudhury.] Do we know how Pakistani Britons, Bangladeshi Britons, Indian musiim Britons, muslim Britons in general voted?

In the above conversation it was implied that minorities and people of color in USA vote Democrat. My response is that in America Asian Americans and Latino Americans are “swing voters” not wedded to either party. Black African Americans vote overwhelmingly Democrat. However, I think President Trump will likely do a lot better with the Black African American vote in 2020 than he did in 2016.

From page 26 of the exit poll provided by Ali Choudhury, we can see the following:

  • Labour lost only nine percentage points of the BAME vote
  • Conservative Tories gained only one percentage point in additional BAME voters
  • Liberal Democrats gained only six percentage point in additional BAME voters
  • Other political parties gained two percentage points of additional BAME voters

Labour–if these exit polls are not contradicted by other exit polls–did FAR better in 2019 among BAME voters than I thought (and that many political commentators thought). To my surprise the Liberal Democrats only gained six percentage points of BAME voters (for 12% total) and the Conservative Tories only gained one percentage point in additional BAME voters.

My new question is why did the overwhelming vast majority of BAME Britons vote for Jeremy Corbyn? Why did so few BAME Britons vote Liberal Democrat?

Did the moderate muslim Britons almost universally vote for Jeremy Corbyn? If so, why? Would love to hear from Veedu Vidz and Rakib Ehsan.

Welcome back Mahathir Mohamad, Hero of Asia! (a)

https://www.youtube.com/watch?v=7_NMXgdCP-U

This is a follow up to:

Welcome back Mahathir Mohamad, Hero of Asia!

Rishabh Gulat–who I respect greatly has a different take on Datuk Mahathir Mohamad, Hero of Asia, than I do. Some argue that Datuk Mahathir has recently shifted his policy and allied with conservative Wahhabi (subset of Salafi, subset of Sunni) muslims, MBS, Saudi Arabia and Pakistan against India. Mr. Gulat implies that Datuk Mahathir is backing Brown Pundit favorite Dr. Zakir Naik against India:

https://www.youtube.com/watch?v=GfhVQoIvGIs

Please watch Mr. Gulat and come to your own conclusions.

The Indian Malays (7% of the population, 15% of the professional workforce, 40% of all Malaysian doctors, economic engine that moves Malaysia) are rallying the opposition to Datuk Mahatir. Mr. Gulat thinks the global Indian diaspora and global Eastern philosophy diaspora (presumably inclusive of Confucians, Toaists and Chinese) should back the Indian Malays in this.

I need to do a lot more research before proposing an alternative course of action. But here is a question. Can the Indian Malays, global Indian diaspora, global Eastern Philosophy, global Muraqabah tilted Sunnis and Shia and global liberal muslims unite and offer Datuk Mahathir Mohammed an offer he can’t refuse?:

There are many great and powerful Indian and Indonesian muslims–friends of PM Modi–who can make the offer.

As an aside, many Brown Pundits readers know Dr. Zakir Naik fanboy and heart throb Veedu Vidz. Please ask him to come on the Brown Pundits Podcast!

Mr. Rishabh Gulat is a great thought leader and expert on Indonesia, Malaysia and South East Asia more generally. He says that India and Indonesia should make a civilizational, cultural, economic and geopolitical alliance. Is there an interest in the Brown Pundits Podcast interviewing Mr. Rishabh Gulat?

Please let us know in the comments.

American Caste (b)

America has a national crisis in math capacity, competence and merit. American students sharply underperform students in many countries all over the world. Including Vietnam, which is a poorer country than India per capita. We will heavily refer to the 2018 OECD PISA report in below paragraphs, but the below chart graphic is from the 2015 OECD PISA scores report because math scores are reported for more countries in the 2015 report. Perhaps the 2018 report will be revised to add more countries in the future:

In my view  a level 5 PISA score is the minimum requirement for a person to be considered a high school graduate who is literate in math, able to function in the modern global economy, or be qualified to attend college. The PISA report defines a level 5 PISA score or better as a fifteen year old that “can model complex situations mathematically, and can select, compare and evaluate appropriate problem-solving strategies for dealing with them.” How does America perform in the 2018 PISA report?:

  • United States: 8% of students scored at Level 5 or higher in mathematics
  • OECD average: 11%
  • Six Asian countries and economies had the largest shares of students who did so:
    • Beijing, Shanghai, Jiangsu and Zhejiang (China): 44%
    • Singapore: 37%
    • Hong Kong (China): 29%
    • Macao (China): 28%
    • Chinese Taipei: 23%
    • Korea: 21%

Note that these six countries were among the poorest countries in the world in the 1950s, far poorer than poor Americans or poor Europeans or poor Chileans can even imagine. In 1979 China was unbelievably poor. Much of the population of China–perhaps as many as 100 million–had starved to death because of extreme poverty in the 1970s. Poor children around the world are outperforming American children in mathematics despite extremely low education spending per student and very low socio-economic level of their legal guardians, where socio-economic level is defined as:

  • income
  • wealth
  • formal education of parents

Do any American high school student subgroups perform well in Mathematics? Yes, “people of color” or “minority” Americans perform well in Mathematics. America’s “people of color” or “minority” students are orders of magnitude more likely to get an 800 on the mathematics SAT than European Americans. If we assume this is an extreme tail end distribution issue related to European Americans having a lower standard deviation and non standard distribution in mathematics performance relative to “people of color” or “minority” Americans, we can explore the breakdown of Americans who score between 750 and 800 on the Mathematics SAT. Here European Americans perform far better relative to “people of color” or “minority” Americans.  In 2015 16,000 European Americans scored 750 or higher. 33,000 “people of color” and “minority” Americans scored 750 or higher. We further know that 51% of SAT test takers were European Americans and 49% were “people of color” or “minority” Americans.  “People of color” or “minority” Americans are [33,000/16,000]*[51%/49%] or 2.15 times as likely to score 750 or higher on the mathematics SAT compared to European Americans.  If we examine the 107,900 test takers who got SAT math scores of 700 or higher; 59,900 are “people of color” or “minority” Americans, versus 48,000 European Americans. “People of color” or “minority” Americans are [59,900/48,000]*[51%/49%] or 1.30 times as likely to score 700 or higher on the mathematics SAT compared to European Americans. For data junkie geeks like me there is a lot more data on SAT math score distributions here and here. The Greta Anderson article’s comment section in particular has some very intelligent commentators who have studied the American SAT score distribution. This is likely to be the subject of many future blog posts and Brown Pundits Podcasts.

What about this is worrying?:

  1. European Americans in particular are sharply under-performing both very poor children around the world and “people of color” and “minority” Americans in mathematics.
  2. American mathematics SAT scores have fallen between 1972 and 2016. 1972 is the earliest year for which I could find comparable SAT mathematics scores. In 2017, 2018 and 2019 the SAT mathematics exam was completely restructured to make scores no longer comparable to SAT mathematics scores between 1972 and 2016.
  3. 90% or more of current jobs and businesses are likely to be replaced by artificial intelligence (AI), brain electro-therapy (meditation . . . practiced by civilizations around the world for over 5,000 years), brain sound therapy (naad or mantra yoga and their equivalents in Native American, Egyptian, Sumerian, Taoist and other civilizations around the world for over 5,000 years), bio-engineering tissue, genetic editing, and fused AI-brain interface synthesis intelligence. Almost all of these future disciplines are complementary to mathematics.

Future articles and podcasts are planned all six of these future disciplines. If you are curious about fused AI-brain interface synthesis intelligence, please watch my main man Elon Musk:

Some say that the tension and relationship challenges between America’s four big castes–European Americans, European “Latino” Americans, Black Americans and Asian American–are driving low math scores for European Americans “AND” other Americans. One example is where thought leader Mark J Perry explores the possibility that tension between the European American caste and the Asian American caste are lowering American  mathematics performance. Excerpts of his article are reproduced below:

Continue reading American Caste (b)

Why did so many BAME (Black, Asian and Minority Ethnic) voted Tory?

https://www.youtube.com/watch?v=hmz97E0z8Sc&t=785s

Another amazing podcast from Veedu Vidz–heartthrob of England. {Sisters, he is already owned by Mimzy and unavailable. Sorry.}

Start watching from 25 minutes in. Some take-aways:

  • Chinese earn the most per hour of any group in Britain.
  • Indians earn the second most of any group in Britain. {Chinese continue to economically outperform Indians globally and in Britain.}
    • Do Chinese and Indians really earn more per hour than English Jews? I am skeptical. What is beyond all doubt is that British caucasians are massively academically and socio-economically under performing Jews, Chinese and Indians.
  • The sample sizes for Chinese and Indian Britons is too small to know how they voted for certain. But it is possible that Chinese, Indian, Sikh Buddhist Hindu and moderate muslim Indians voted against Jeremy Corbyn in part because of Corbyn’s close alliance with conservative Sunni and Islamist groups.
  • Before 2019, Pakistani and Bangladeshi Britons  use to heavily vote for Jeremy Corbyn and Labour.
    • Brown Pundit favorite Sajid Javid has received a lot of abuse for being a muslim Tory.
  • Tory Priti Patel (who I just heard about for the first time) has also received a lot of abuse.
    • (Is part of the English anger at Priti Patel jealousy over the socio-economic success of Indians? Given how many Indian Britons vote Tory, how can it be because of that?)
    • Priti Patel wants a point based (merit based) immigration system. (Why is this controversial among caucasian English people?)
  • There is a great deal of diversity among the British muslim population
  • Veedu Vidz says that Boris Johnson is anti everyone who is not Boris Johnson.
  • 38 minutes in discusses deep anti Jewish bigotry on the part of English caucasians, the Labour party and Jeremy Corbyn.
    • comes from the far left
    • comes from the far right
    • need to focus a lot more on muslim anti Jewish bigotry
  • 43 minutes in, many working class caucasian and BAME voters probably are voting Tory in part because they are so scared of being accused of racism by their representatives for asking questions.
  • 46 minutes in, Labour has lost its moral legitimacy on racism, bigotry and sectarianism. Labour and the BMP are the only two parties in English history to be investigated by the Equality and Human Rights commission for misconduct.
  • 58 minutes in, many poor and working class caucasian britons have suffered from globalization and have no privilege at all. Labour should stop accusing them of having non-existent privilege.
  • 60 minutes, many Labour try to blame the world’s social ills on Britain. (I am stunned that this still happens. England has been falling apart for generations and is in many ways more backwards than many of her former colonies. Talk about delusions of grandeur.)
  • 63 minutes in Veedu asks if Hindus have an advantage over muslims in Britain.

My questions:

  • I get why many Britons felt they could not vote for Corbyn and Labour. Why didn’t more vote Liberal Democrat?
  • Can anyone send me an exit poll with granular detail on 2019 UK voting patterns?

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Update 1:

Maajid Nawaz Gob-smacks Corbyn and says Corbyn beat Corbyn.

https://www.youtube.com/watch?v=eeni-2J_fYs

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Update 2:

Katie Hopkins is a Member of the Tory party and is trying hard to create an alliance between the UK and India (and presumably the Dharmic world more generally). The alliance would focus on resisting:

  • Globalism (which she mostly defines as post modernist wokeness, perhaps combined with pro business free markets to a lesser degree)
  • Islamism
  • Feminism (by which I think she means third wave woke post modernist intersectional femnism)

To simplify, I think she mostly means post modernism and Islamism. She appears to think the Europe will divide into Islamist hamlets and non Islamist hamlets. And that Europe and the world as a whole needs India’s and America’s help to survive.

Could the UK government pursue an alliance with India focused on post modernism and Islamism? Could this end any remaining Indian sensitivity about being colonized by the UK? Is this being facilitated by Indian Britons and perhaps muslim Indian Britons leaving the Labour party?

Sham Sharma has speculated that Indian Americans could wholesale flip to the Republican Party similar to the flip of Indian Britons between 2017 and 2019? Could this really happen?

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Update 3:

https://www.youtube.com/watch?v=YkpnSU6ceg8

It is possible that British Asian, African, ethnic minority, poor and lower middle class European ancestry voters were scared about anti Jewish bigotry:

https://www.youtube.com/watch?v=ZSmUU7t2zgc

As a side note, the UK has very different issues than the USA. For example UK students perform far better in math than Americans. 13% scored 5 or higher in the 2018 OECD PISA test, compared to 8% of Americans.  Immigrants appear to slightly academically underperform non-immigrant Brits across reading, science and math, although mathematical performance  was not provided. The definition of “disadvantaged students” in the report was unclear.  Between 2009 and 2018 the number of immigrant students has risen from 11% to 20%. One third of immigrant students are “disadvantaged students.” Math results for England have been rising over time and girls sharply outscored boys in mathematics, science and reading.

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Update 4:

According to Nimco Ali (patriotic Briton who happens to have Somali muslim ancestry) most African Britons vote Tory. She is a leading campaigner against female genetic mutilation and says that Tory leaders, Tory moderate muslims and Tory Indians (Priti Patel ) are backing her. Nimco also fights for muslim woman to have the right not to wear the hijab, and again says that she gets support from many Tory leaders, Tory moderate muslims and Tory Indians (Priti Patel ). She is very aspirational. She says that in Britain the aspirational BAME are African Britons and Indian Britons. Both back the Tories. The less aspirational Britons are Pakistanis and they tend to support Labour and Jeremy Corbyn. I am guessing that Bangladeshis are in the middle.

I wonder why more African Britons don’t vote Liberal Democrat. My main man Maajid Nawaz is Liberal Democrat. I get why African Britons don’t like Jeremy Corbyn.

Nimco Ali says that Briton has recently prosecuted several muslim Britons for female genetic mutilation of children. Until recently no Briton was prosecuted for female genetic mutilation. About a tenth of mothers giving birth to children in many British hospitals have had FGM. Kudos to Boris Johnson, Brown Pundit favorite Sajid Javid, Priti Patel and other Britons for trying to end FGM!

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