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!
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Product Director with 10+ years in leadership roles - team building, product strategy, coaching and mentoring are a part of my everyday responsibilities. I write about motivational words that inspire us and shape our thinking and help us go beyond these thoughts to find what our minds are telling us and evolve.
Thank you Neha :). I agree, I think it makes sense for us to look at self sustenance as a goal. For a country where we have primary market of resources and tertiary market of services, the manufacturing part plugs in the gap very well. I am very eager about this project and hopefully it will take India to the next level.
Frankly, make in India doesn’t make sense at all. Let me start with the resources. India has human resources, unemployment. So, we are trying to make a deal with MNCs who would use cheap labour, but continue to sell at a high price reaping exorbitant profits. If these MNCs are from any country except India, the actual profit will be reaped by the concerned country. How does this help India? We would be proud to provide cheap labour and raw materials which don’t count.
Besides, this doesn’t build a brand. When people look at a brand, they check the name. Nobody cares if the Samsung handset bears the label Made in India, Thailand or
China. People believe in Samsung’s quality not of the country where it’s made.
Unless, make in India is associated with Indian brands it won’t be useful to us. Make in India is not the same as Made in India, in fact indegenous industries will suffer because now their only advantage (being Indian and availing cheap resources) is wiped out.
I think, all the international MNCs must be glad of this idea, they’ll make huge investments in India with Indian money and reap profit on it,
again.
I do agree with most of your points but only, I think it depends on who is the manufacturer. A very well-written post.
Kiran, in a sense I agree to what you are saying. It is a very tricky thing to establish new businesses and venture out into new markets, esp when a concept so huge is being tried out, it is going to be very dicey to know which exactly is going to make that difference. In a way, even if it is a western firm setting up a manufacturing plant in India, the government can still oversee, define the labor laws and manufacturing laws, and royalties for the provisions of these.
Ideally in any business scenario, one would look at a win win situation, even in this case, the country which is investing is going to make a lot of money and so is India. Neither of us are going to lose much, since it is a global market we are dealing with, the success of the product means more orders which means more opportunities to work and of course an economic growth. In this case, we are not just providing the labor but reaping benefits out of it. Like any new decision, it has two phases, the trick might be to make the best use of it. I agree, no one cares anymore as to where the product is made from but China has had a very strong economy because of its manufacturing policies. If we look at India, manufacturing is the weakest link which is being addressed by this provision.
As for the local industries suffering, I agree that it is a disadvantage for them, but if you look at the law of numbers and sheer magnitude of opportunities this can create, it is a lesser risk. And competition is always a good thing, the older companies will find a better way to operate and ultimately the consumer gains which again leads me to a win win situation :)
Actually with so many engineers passing out each year it is a real pity that manufacturing is an asset under utilized. Good thought, hope and pray it works!
Yes Datta, so many vocational courses, engineers, diplomas and of course the brain drain. It would be a nice pace of things to see that such a endeavour can take shape :)
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Thank you Neha :). I agree, I think it makes sense for us to look at self sustenance as a goal. For a country where we have primary market of resources and tertiary market of services, the manufacturing part plugs in the gap very well. I am very eager about this project and hopefully it will take India to the next level.
Frankly, make in India doesn’t make sense at all. Let me start with the resources. India has human resources, unemployment. So, we are trying to make a deal with MNCs who would use cheap labour, but continue to sell at a high price reaping exorbitant profits. If these MNCs are from any country except India, the actual profit will be reaped by the concerned country. How does this help India? We would be proud to provide cheap labour and raw materials which don’t count.
Besides, this doesn’t build a brand. When people look at a brand, they check the name. Nobody cares if the Samsung handset bears the label Made in India, Thailand or
China. People believe in Samsung’s quality not of the country where it’s made.
Unless, make in India is associated with Indian brands it won’t be useful to us. Make in India is not the same as Made in India, in fact indegenous industries will suffer because now their only advantage (being Indian and availing cheap resources) is wiped out.
I think, all the international MNCs must be glad of this idea, they’ll make huge investments in India with Indian money and reap profit on it,
again.
I do agree with most of your points but only, I think it depends on who is the manufacturer. A very well-written post.
Kiran, in a sense I agree to what you are saying. It is a very tricky thing to establish new businesses and venture out into new markets, esp when a concept so huge is being tried out, it is going to be very dicey to know which exactly is going to make that difference. In a way, even if it is a western firm setting up a manufacturing plant in India, the government can still oversee, define the labor laws and manufacturing laws, and royalties for the provisions of these.
Ideally in any business scenario, one would look at a win win situation, even in this case, the country which is investing is going to make a lot of money and so is India. Neither of us are going to lose much, since it is a global market we are dealing with, the success of the product means more orders which means more opportunities to work and of course an economic growth. In this case, we are not just providing the labor but reaping benefits out of it. Like any new decision, it has two phases, the trick might be to make the best use of it. I agree, no one cares anymore as to where the product is made from but China has had a very strong economy because of its manufacturing policies. If we look at India, manufacturing is the weakest link which is being addressed by this provision.
As for the local industries suffering, I agree that it is a disadvantage for them, but if you look at the law of numbers and sheer magnitude of opportunities this can create, it is a lesser risk. And competition is always a good thing, the older companies will find a better way to operate and ultimately the consumer gains which again leads me to a win win situation :)
Actually with so many engineers passing out each year it is a real pity that manufacturing is an asset under utilized. Good thought, hope and pray it works!
Yes Datta, so many vocational courses, engineers, diplomas and of course the brain drain. It would be a nice pace of things to see that such a endeavour can take shape :)