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Shankar Sharma's wake-up call: Ace investor on why India can't compete with China, which is destined to be the greatest

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Market expert Shankar Sharma has drawn a sharp comparison between India and China’s workforce, highlighting what he sees as a major gap in service culture. Sharing his experience on social media, Sharma pointed out that while India is often perceived as a rising economic power, China’s work ethic and service efficiency put it in a different league altogether.

“Another post our Demographic Debt needs to see: I sent this tweet last night at around 12:00 midnight Dubai time to China (4AM). Reply was instant. The person is 27 years of age and makes Rs. 25k PM. No employee irrespective of age, in the whole of India, can ever match this level of service,” Sharma wrote on X.

He went further, arguing that China is not just a manufacturing giant but an even bigger powerhouse in services. “People make the mistake of thinking China is a manufacturing Giant. It is in fact an even bigger service Giant, given the incredible service they give even to a $200 purchase customer. And that is why it is destined to be the greatest nation in the world. No competition,” he added.



From Demographic Dividend to ‘Demographic Debt’
For years, India’s young population has been seen as a key economic advantage. But Sharma has repeatedly warned that this so-called demographic dividend is slipping away, turning into what he calls “Demographic Debt.” In December last year, he sounded the alarm, saying, “Our Demographic Dividend — turning — into — Demographic Debt: watch this. Even Food Delivery jobs aren’t safe anymore, once these come to India from Cheen (China).”

His concerns stem from the changing nature of employment and automation’s growing role. If even service sector jobs like food delivery are vulnerable to external competition, India’s job market faces a deeper crisis than many realise.

Automation and AI: The Growing Threat
Sharma’s warnings go beyond competition from China. He has also pointed to the disruptive force of artificial intelligence (AI) and automation, which he believes will reshape India’s economy. In a post from November, he said, “More than 60% of India's economy comes from services and these services sprawl across all aspects of our daily lives: design, IT, KPOs, BPOs, legal services, advertising, media, journalism, finance. And there is nothing. I repeat, nothing, that AI won't be able to do better than any individual in any of the above businesses, including perhaps the CEO.”

This prediction is particularly concerning given India’s reliance on its services sector, which contributes the bulk of its GDP. If AI and automation can outperform human workers in these fields, millions of jobs could be at risk.

Job Market Challenges and Changing Preferences
Sharma also highlighted the struggles of even the country’s top graduates. “If IIT students don’t get jobs, this danger is clear and present,” he said, pointing to a worrying trend in the employment landscape.

Adding to the challenge, India’s younger workforce appears unwilling to take up certain kinds of jobs. “The truth of the matter is that our young population does not want to work in factories, and those may well be the only jobs that will remain in size, a few years out into the future,” he stated.

A Wake-Up Call for India’s Policymakers
Sharma’s observations present a sobering reality: India must act quickly to safeguard its economic future. Whether through policy interventions, workforce training, or strategic shifts in education and employment practices, the country faces an urgent need to address these challenges.

With automation on the rise and China setting high standards in both manufacturing and services, the question remains—can India adapt in time?
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