This is a path-breaking venture. In fact, the vision statement of official website, www.makeinindia.gov.in commits to achieve for the country among other things an increase in manufacturing sector growth to 12-14 % per annum over the medium term, increase in the share of manufacturing in the country’s Gross Domestic Product from 16% to 25% by 2022 and importantly to create 100 million additional jobs by 2022 in the manufacturing sector alone. These are quite highly ambitious targets given the background that the manufacturing sector in India, which accounts for fourth-fifth of the total output, grew a meagre 3.3 per cent in January 2010.
Achievable Targets:
· Target of an increase in manufacturing sector growth to 12-14% per annum over the medium term.
· An increase in the share of manufacturing in the country’s Gross Domestic Product from 16% to 25% by 2022.
· To create 100 million additional jobs by 2022 in manufacturing sector.
· Creation of appropriate skill sets among rural migrants and the urban poor for inclusive growth.
· An increase in domestic value addition and technological depth in manufacturing.
· Enhancing the global competitiveness of the Indian manufacturing sector.
· Ensuring sustainability of growth, particularly with regard to environment.
Tapping Golden Opportunity:
Now let us look at the opportunity, the initiative can actually benefit India from the ground reality, especially when the Chinese manufacturing leaps have come under strain. There are already reports that several western manufacturing players operating in China want to move away from the world’s largest manufacturing hub. Analysts say, Chinese wages are going up and the labour market is getting more challenging and that is driving away investors. Thus companies with operating factories in China should look for other alternatives in the region, such as Vietnam, Indonesia and of course India. What are the advantages Indian business and especially manufacturing sector actually offer?
The country is expected to rank amongst the world’s top three growth economies and amongst the top three manufacturing destinations by as early as 2020. This is far more ambitious scene than promised about 2050 sometime back in the context of India’s role at the BRICS level. Indian manufacturing sector has positive elements like “favourable demographic dividends” for the next 2-3 decades. The sustained availability of quality workforce is another advantage.
Importantly again, in India, the cost of manpower is relatively low as compared to other countries. There are responsible business houses operating with credibility and professionalism. The country has a democratized polity vis-à-vis the rule of law and a strong consumerism intake ability of the domestic market.
Achievable Targets:
· Target of an increase in manufacturing sector growth to 12-14% per annum over the medium term.
· An increase in the share of manufacturing in the country’s Gross Domestic Product from 16% to 25% by 2022.
· To create 100 million additional jobs by 2022 in manufacturing sector.
· Creation of appropriate skill sets among rural migrants and the urban poor for inclusive growth.
· An increase in domestic value addition and technological depth in manufacturing.
· Enhancing the global competitiveness of the Indian manufacturing sector.
· Ensuring sustainability of growth, particularly with regard to environment.
Tapping Golden Opportunity:
Now let us look at the opportunity, the initiative can actually benefit India from the ground reality, especially when the Chinese manufacturing leaps have come under strain. There are already reports that several western manufacturing players operating in China want to move away from the world’s largest manufacturing hub. Analysts say, Chinese wages are going up and the labour market is getting more challenging and that is driving away investors. Thus companies with operating factories in China should look for other alternatives in the region, such as Vietnam, Indonesia and of course India. What are the advantages Indian business and especially manufacturing sector actually offer?
The country is expected to rank amongst the world’s top three growth economies and amongst the top three manufacturing destinations by as early as 2020. This is far more ambitious scene than promised about 2050 sometime back in the context of India’s role at the BRICS level. Indian manufacturing sector has positive elements like “favourable demographic dividends” for the next 2-3 decades. The sustained availability of quality workforce is another advantage.
Importantly again, in India, the cost of manpower is relatively low as compared to other countries. There are responsible business houses operating with credibility and professionalism. The country has a democratized polity vis-à-vis the rule of law and a strong consumerism intake ability of the domestic market.
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