Is India’s labor truly cheap?

 India's labor force is often labeled as "cheap," especially when compared to developed countries with higher wages. On the surface, this observation seems accurate — India's wages are indeed much lower than those in countries like Switzerland, where salaries are significantly higher. However, when we look beyond these low wages and examine the broader picture, it becomes clear that the actual cost of labor is far more complex. The seeming cost-effectiveness of hiring a worker in India is often overshadowed by hidden inefficiencies that push up the true cost for employers. Let’s consider two workers: Arjun, a factory worker in India, and Markus, a factory worker in Switzerland. At first glance, Arjun may appear to be the more affordable option, given his modest wage. However, a deeper dive reveals a stark difference in productivity. According to the International Labour Organization (ILO), Arjun’s contribution to India’s GDP is only $8.5 per hour, while Markus, in Sw...