Outsourcing Brown Goods to India

The People's Republic of China has been flirting with the concept of free trade ever since the debacle at Tiananmen Square in the late 1980s. However, State control of macro economy and free movement of both labour and capital within PRC remain questionable. The last decade has witnessed phenomenal changes in the Indian industry after the declaration of the liberalization, privatization and globalization policy of the government. On one hand the government has welcomed the foreign companies to enter the Indian market and compete with the local players. On the other hand our tax structures and reservation policies make them uncompetitive. Several researchers have conducted many studies in the past with respect to the small-scale sector. But the 'brown goods manufacturing sector' has not been studied exclusively in the past. This study is an attempt in exploring the problems faced by the 'Brown goods sector' in particular. The author has in the process evaluated the impact of Indochina Trade from the perspective of macro management of international outsourcing of brown goods.