Trade...

Article;
INDIA'S economic reforms not enough -US trade officials.

Comment;

The priority for both the countries in the long run is to increase employment opportunities and a higher per capita income for the growing population and, in short, more tax because of our ever growing demand and magnitude of poverty. No major country is without poverty. Poverty in emerging economies is a major issue and more acute in terms of numbers. Therefore to remove poverty we need more jobs for those do not have a job. Manufacturing may be capital or labor intensive depending on the level of technology but for a labor rich country a labor intensive technology is more appropriate to reduce unemployment. Therefore as far as technology is concerned we need to import more labor intensive technology in manufacturing and they would be cheap compared to capital intensive techniques. But this time when there is a great wage differential between the US and INDIA it is profitable to put manufacturing plants in INDIA and exports less-skilled job to INDIA. Every job created will create more jobs in the partner’s economy. May be in the long run INDIA would be able to export less skilled jobs to the US…