Make-in-In­dia: Can Op­ti­mism Meet Re­al­ism?

Make-in-In­dia is one of the flag­ship pro­grams of the cur­rent regime which is draw­ing head­lines glob­ally. Is it an ivory tower build around hype or does it have any prox­im­ity with re­al­ity?

Voice&Data - - ANALYSIS -

In­dia’s eco­nomic growth re­lies on the man­u­fac­tur­ing ac­tiv­ity. Sadly this has been one of the weak­est points in In­dia’s eco­nomic his­tory. In ad­di­tion to the political and diplo­matic fac­tors, flawed poli­cies around man­u­fac­tur­ing have dou­bled road­blocks over the years. In strong con­trast at the same time Asia was emerg­ing as a global man­u­fac­tur­ing hub where most In­dian coun­ter­parts like China, South Korea, Ti­wan and Thai­land, etc, were flex­ing their man­u­fac­tur­ing mus­cle.

It is only un­til re­cently when In­dia re­al­ized the power of fac­to­ries and be­com­ing a man­u­fac­tur­ing pow­er­house. The re­al­iza­tion that it can not achieve its eco­nomic goals with­out in­creas­ing the man­u­fac­tur­ing ca­pa­bil­ity is a de­layed yet pos­i­tive step. Prime Min­is­ter Naren­dra Modi’s ‘Make In In­dia’ ini­tia­tive comes as a wake up call and em­pha­sizes on the do­mes­tic man­u­fac­tur­ing so that at least a part of do­mes­tic de­mand could be sup­ple­mented with prod­ucts made-in­In­dia. De­spite the de­lays, it comes as a wel­come move since it is not an op­por­tu­nity en­tirely lost. In­ter­est­ingly In­dia owns a huge mar­ket-base to sup­port a large man­u­fac­tur­ing build up in the coun­try.

Bank­ing on Make-in-In­dia

The ‘Make in In­dia’ ini­tia­tive un­der the cur­rent regime pro­vides im­pe­tus to the dor­mant elec­tron­ics man­u­fac­tur­ing sec­tor in In­dia. In to­day’s sce­nario, the prob­lem is much more than just pol­icy. It has moved be­yond. To de­velop a com­plete ecosys­tem for elec­tron­ics man­u­fac­tur­ing in In­dia needs will­ing­ness from in­vestors and com­pa­nies alike. As en­vi­sioned jointly by the in­dus­try and the govern­ment, the de­mand for elec­tron­ics hard­ware in the coun­try is pro­jected to in­crease to $400 bn by 2020. “We have seen a sig­nif­i­cant hike in the de­mand for elec­tronic prod­ucts and all this de­mand can­not be ad­dressed through im­ports as this will have large-scale ad­verse con­se­quences on In­dian econ­omy and its bal­ance of pay­ments. Hence the coun­try does not have a choice but to build a solid do­mes­tic elec­tron­ics ecosys­tem,” opines MN Vidyashankar, Pres­i­dent of IESA.

Vidyashankar fur­ther out­lines that do­mes­tic pro­duc­tion of elec­tron­ics has been a ma­jor fo­cus of the new govern­ment and it rec­og­nizes the need to re­duce In­dia’s elec­tron­ics im­port bill. “Based on the var­i­ous pro­pos­als that have been sub­mit­ted dur­ing the last cou­ple of years, we ex­pect to see in­creased man­u­fac­tur­ing ac­tiv­ity. We will see 2016 to be the ma­jor wrap up,” adds Vidyashankar.

“The com­mit­ment to pro­vid­ing de­fined time­lines for all clear­ances, and call­ing for in­vest­ment pro­pos­als and in­cen­tives for man­u­fac­tur­ing are steps in the right di­rec­tion and will open up busi­ness op­por­tu­ni­ties for de­sign­ing prod­ucts in In­dia for both do­mes­tic and global mar­kets,” says Jaswinder Ahuja, Cor­po­rate Vice Pres­i­dent and Man­ag­ing Di­rec­tor, Ca­dence De­sign Sys­tems In­dia.

There are var­i­ous prod­uct cat­e­gories where there is a sure busi­ness case for mak­ing in In­dia. Par­tic­u­larly in the de­fense elec­tron­ics where the de­part­ments in de­fense are show­ing lot of in­ter­est. “IESA is play­ing a key role with re­gards to trans­form­ing those com­pe­ten­cies and ex­pe­ri­ences to the pri­vate sec­tor and also to con­trib­ute and sup­port the depart­ment of de­fense. There is a con­sid­er­able in­ter­est in the min­istry of de­fense. Au­to­mo­tive elec­tron­ics is an­other key sec­tor where there is a high value ad­di­tion,” says Vidyashankar.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.