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Divergent paths of robotics adoption in China and India

Author

Listed:
  • Mani, Sunil

Abstract

This paper analyses the stark divergence in industrial robot adoption between China and India, benchmarking their trajectories in terms of scale, density, and sectoral and task diversity. Employing a three-factor analytical framework - labour market pressures, industrial structure, and government policy - the study explains China's rapid, state-orchestrated automation, which has bolstered export competitiveness despite rising wages. In contrast, India's adoption remains incremental and concentrated, constrained by its labour-abundant economy and less activist policy stance. The analysis reveals distinct implications: China enhances economic resilience but faces social risks from workforce displacement, while India preserves employment stability at the cost of global competitiveness and productivity. The findings underscore the critical need for policy realignment in both nations to harness the benefits of automation while mitigating its socioeconomic costs.

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Handle: RePEc:zbw:iedlwp:336697
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JEL classification:

  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
  • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
  • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
  • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
  • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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