A Younger India Is Flexing Its Industrial Brawn - New York Times

A Younger India Is Flexing Its Industrial Brawn - New York Times

In a country where the national symbol has shifted from government bureaucrats at aging desks to call center operators in cubicles, it looks as if the next icon will be the laptop-toting engineer on a factory floor.

“The old philosophy was, ‘I should work in an office, come in at 10 and leave at 4,’ ” said Nitin Kulkarni, 35, an engineer at the Hazira steel mill. But in recent years, he added, “there has been a revolution.”

India’s labor laws, little changed since they were enacted just after independence in 1947, also continue to discourage companies from hiring workers, by making it very difficult to lay off employees even if a company’s fortunes sour or the economy slows.

Still, a new optimism prevails in India, bordering at times on euphoria.

“The Chinese are very good at copying things, but Indians believe in quality work, we believe in meeting pollution norms,” said S. S. Pathania, the assistant general manager of the Hero Honda motorcycle factory in Gurgaon, 30 miles south of New Delhi. “I think India will pass China very soon.”

Hero in Gurgaon, on the southern outskirts of New Delhi, and its archrival, the Lifan Group in Chongqing, a city in western China, produce comparable motorcycles but the similarity ends there. Hero markets heavily to its domestic market, protected from foreign competition by high import tariffs, while Lifan emphasizes exports.

With scant ventilation, Lifan’s factories are filled with diesel exhaust as workers test engines and ride finished bikes at breakneck speed out the doors, zigzagging past co-workers. Hero’s factory in Gurgaon, where Honda holds a minority stake, has far better safety standards and excellent ventilation.

The Lifan factory pays less than $100 a month. The heavily unionized Hero factory pays $150 a month plus bonuses of up to $370 a month; nearly half the workers earn the top bonus, Mr. Pathania said.

Lifan’s labor force is quiescent — would-be organizers of independent labor unions face long jail terms or worse in China. Hero’s workers staged a successful nonviolent protest in 2005 to call for more contract workers to be eligible for the bonuses as well.