Turning India Into A Manufacturing Powerhouse

by CXOtoday News Desk    Sep 26, 2014

manufacturing

A day after India’s triumphant Mars mission, prime minister, Narendra Modi launched the “Make in India” campaign - an initiative that is meant to focus on making India a hub for global manufacturing - both in terms of physical infrastructure creation as well as creating a digital network. The underlying principle of the ambitious project is to cut red tape, spur foreign investments and transform India into a manufacturing powerhouse, thereby taking the country’s economy to the next level. This initiative can also help achieve high growth and creation of jobs in the country.

Calling upon domestic and international companies to invest in India, the Prime Minister said his government’s focus was not only to ‘Look East’ but also to ‘Link West’. “I do not only talk about good governance. I talk about effective governance and easy governance,” he said launching the ‘Make in India’ campaign that was attended by leading industrialists and business leaders, including Cyrus Mistry, Mukesh Ambani, Azim Premji, Kumar Mangalam Birla, Chanda Kocchar and Y C Deveshwar.

The PM added that it is not only about building highways, but we also need i-ways - information ways for a Digital India,” and therefore “Make in India is not a slogan, not an invitation”.

Calling the Asia and India market as the best destination with a vibrant democracy with demographic dividend and huge demand, Modi said the ‘Make in India campaign is a Lions Step’ towards making the country a destination for global manufacturing.

The much-needed push

The government’s new ambitious was welcomed by leading industrialists and corporate honchos who said that the manufacturing sector was set to get the much-needed push with this initiative.

As the government has stressed on factors such as de-licensing, deregulating and taking India to high growth trajectory, as part of its new initiative, Reliance Industries Chairman Mukesh Ambani said implementation of GST will make India one market and strengthen overall the ‘Make in India’ program. He also said that Reliance Industries would be creating 1.25 lakh jobs in next 12-15 months.

Chanda Kochhar, Managing Director, ICICI Bank said that manufacturing is very important for job creation and efforts such as Make in India will drive next phase of growth for the country.

Kochhar told ET that quality and sustainability are key aspects of manufacturing sector and we all have a role to play in this journey. “India Inc needs sector-specific policies, skills development. We need to ensure manufacturing processes are sustainable and need to improve ease of doing business and access to infrastructure,” she said.

Wipro chief Azim Premji opined that true success of manufacturing lies in ability to service global market. vision as a manufacturing powerhouse calls for educated workforce of thinkers and problem solvers.

A boon to SMEs

According to President PHD Chamber of Commerce and Industry, Sharad Jaipuria,The launch of Make in India is expected to inspire the investors to look at India for their future investments as the government has taken various initiatives such as skill development and launch of Digital India which would improve the ease of doing business and spur manufacturing growth, going ahead.

Experts also believe the initiative will provide a major boost to the already existing SMEs who can provide component and sub system to the large manufactures, which in turn would create a much needed electronics manufacturing ecosystem

Rana Kapoor, President ASSOCHAM also believes a key initiative of this program is reaching out to the states for facilitating and promoting investment in manufacturing. “With the promise of effective and easy governance, enabled by IT, this campaign will be a game changer to facilitate true convergence of innovative ideas – both from within India and from overseas,” Kapoor said.

CII President Ajay Shriram said today we have to look at labour laws, land acquisition, regulations and infrastructure because today infrastructure is impeding the competitiveness. at this juncture, he believes “It is the only way and the right time to generate employment for the large pool of young people joining the labor force.” He added that Make in India will get manufacturing on the centre stage and I think in due course it is going to help.

 “We’re glad to see the PM’s initiative towards making India a preferred manufacturing destination encompassing 25 sectors that includes ESDM and several other sectors that rely heavily on electronics,” India Electronics and Semiconductor Association Chairman Ashok Chandak said.

The new government’s infrastructure development push across sectors would definitely provide impetus to manufacturing, said MAIT, which lauded job creation as a result of setting up of manufacturing in the country.  It also believes that the commitment of the government towards providing defined timelines for all clearances apart from providing exemptions from rules and regulations related to labor, environment  would go a long way in clearing some of the hurdles which existed before.

“If all these measures are taken as a result of ‘ Make in India’ initiative, we expect this provide a major boost to the already existing SMEs who can provide component and sub system  to the large manufactures, which in turn would create a much needed electronics manufacturing ecosystem,” says the IT trade body.