MAKE IN INDIA!
This is the first thing I see as my open my newspaper today or look at the media channels. It is the launch of MAKE IN INDIA , the entire country seems like it is being swept away with the new wave of inspiration in the business sector. The inspiration is abuzz and all people seem to talk about is converting India into a self reliant, self sustaining manufacturing sector.
WHY FOCUS ON MANUFACTURING IS IMPORTANT?
It does make a lot of sense this way considering that India has been primarily a service oriented industry. The agriculture industry which is a major contributor for the economy has also held its place quite strongly, but it was the manufacturing sector which was the most hit or the one which needed to biggest boost! We have always had the necessary raw materials, India is still a country abundant in its resources, the human resource is extraordinary and the service sector is at its peak. The one thing amiss was the manufacturing sector – a sector which could integrate the raw materials of the produce and the end service.
HOW IT HELPS THE LOCALS
You see, this was the one industry which could plug the gap, reduce the dependence on external factors or western/eastern countries to fulfill the basic needs. Once these basic needs are addressed through the manufacturing sector or in other words the make in India project, it helps completing the business cycle for any product or a component. Imagine that all the components needed are produced within the country, it helps us save on the labor cost for the product being produced elsewhere. Since these manufacturing units employ locals, the circulation of money happens within the country boosting the economic well being and the human resource gets an opportunity to be utilized.
GROWTH OF ALLIED SECTORS
With the development of these manufacturing sectors, the allied sectors – Education, Research, Development, Service and also the primary raw material face equivalent improvements. The quality of raw materials increase since there is a greater demand for them which can pay them more. The research industry improves since these manufacturing units would need talented individuals to run the design sectors and invent improvements. The service sector will improve since the manufacturing units have a physical presence which implies greater responsibility to the country it is a part of. The beauty with growth is that it always comes with its relatives 🙂
CHANGE IN PERCEPTION OF INDIA
The pre 2010 era had focused India as mainly a call centre junction, where countries could offshore their projects and get the most of their investment. As time progressed, India was also a place for the customer support and a little later technical support and much later part of it has gone on to support research projects as well. With this change and the manufacturing part being made in India, combine it with the extraordinary human resource we have and the final product is also being sold here, it means that the products get cheaper, people get more jobs, dependence of India on other economies reduces, it gives the country a better bargaining power and the value of the international currency exchange improves.
THE BIG PICTURE
So, if you are looking at the big picture, the point is that we are looking at a country which has the resources, has manufacturing units to make better use of these resources and then has the consumer base to find market for these resources which makes it the perfect situation for a self reliant nation which can sustain on its own!