Make in India

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“MAKE IN INDIA”

Will the dream come true?

 

Despite, several efforts by the central government in the last five years, the “Make in India” concept yet has not been materialized meaningfully.

The share of manufacturing sector to country's economy is around 15% only as on to date. Post Covid-19, now the time has come to give manufacturing as a field the highest priority. It is the only way to revive the Indian economy and keep its growth stable. COVID-19 has created an opportunity for the manufacturing sector to evolve as the entire world is looking for an alternative to China. India cannot afford to let this opportunity slip but we are have so many bottlenecks to overcome, to make our dream come true.

Let’s take a look at these bottlenecks:

§  Absence of stable long-term rules and policy for FDI. One must note that the Referee must not change the rules of the game midway and that applies with our government as well.

§  Red-Tapism and absence of meaningful ease of Doing Business across all the levels of governments i.e. central, state & local.   

§  Lots of surveillance & compliance issues relating to taxation.

§  Poor infrastructure; particularly our logistics and warehousing systems are not technologically and digitally updated.

§  Absence of proper understanding between center and state governments due to political conflicts.

§  Obsolete & outdated education system resulting into to shortage of skilled man-power.

§  Absence of proper implementation of land and labor reforms across the country.

Our decision makers must look into these matters very seriously to remove the bottlenecks in order to achieve the desired goal.  With strong political will, these issues can be tackled in the medium term.

Although, we have lots of issues to be resolved but at the same time we also have certain advantages to capitalize the current world needs and become an international manufacturing hub.

Demographic situation

India has more than 50% of its population below the age of 25 and more than 65% below the age of 35.  The average age of an Indian is 29 years. You can imagine how energetic we are as of now.  Having the strength of large manpower, we can boost manufacturing manifolds.

 

Local Consumption

As per projections, the number of people in middle income group are expected to reach about 500 million & their spending is expected to reach to 5.7 trillion dollars by 2030.  This is one of the strongest reasons as to why everyone in the world is looking India.

Some more advantages that we can capitalize on:

§  Better Presence of Technology and IT professionals within the country.

§  Government is opening up many sectors like Mining, Defense, Infrastructure for private entities across the globe.

§  Change in behavior of Local Entrepreneurs, as many of them are now looking to expand their Industry in strong relation to International size and are desperate for having Joint Ventures with International Giants.

§  Political Stability, as there is a single party in power at center.

§  Country’s better economic & diplomatic relations with developed nations.

§  Evolving Indian entrepreneur's attitude owing to China factor.

 

In conclusion, we hope that the day is not too far for us to make “Make in India” a larger than life module. The country will see more prosperity in time to come, supported by aggressive measures of the central government and the strong will of an Indian entrepreneur.

 ~Rajendra Jhanwar


Comments

  1. Prem BhandariJune 19, 2020 at 9:03 PM

    Blessings in Disguise.
    Hopefully, this time we will see real path breaking changes, particularly in the beaurcracy

    ReplyDelete
  2. Lalit SinghviJune 22, 2020 at 4:23 AM

    Blogger has put up the issues our country is currently facing and the way forward in a very lucid way. I would just like to add that govt need to do great amount of policy reforms in land and labour issues. Failing which we will not be able to attract FDI in a meaningful way, which in turn is absolute necessity if country is to grow like China. India cannot grow at the rate all we want without speeding up FDI. Land reforms is the foremost to invite foreign companies to set up business. Here, we have miserably failed. We have burning example of Korean steel giant Posco which had decided to set up giant steel plant in orrissa with intended investment of US 10 Billion. It tried for 8 years to get required Land for setting up huge steel complex but could not get and got finally left the country with bitter experience. This has dissuaded many others. Unless we formulate proper policy frame work and make congenial atmosphere for global Biggie's, it will just remain our wishlist that all American and European companies will shift from China to India, following current Covid related issues and trade barriers being imposed on the country.

    ReplyDelete

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