Ultimate objective to make India a renowned manufacturing hub for key sectors. Companies across the globe would be invited to make investment and set up factories and expand their facilities in India and use India’s highly talented and skilled manpower to create world class zero defect products. Mission is to manufacture in India and sell the products worldwide. This will help in creating job market for over 10 million people in India.
This what the ambitious project targeted by the Modi Govt. But we were worried when we came across some startling findings based on a survey carried out by the Social Development Foundation of Associated Chambers of Commerce and Industry (ASSOCHAM).
Recently we have celebrated Holi festival in India and of course this is a time for some Indian Industry to sell their festive product. Domestic manufacturers of Holi colours, water guns, balloons, and other products are facing huge losses as ‘Made in China’ products beat them on the two most important counts: product quality and price. According to the survey, ‘Made in China’ products were more ‘innovative’ and cheaper by about 55%.
It’s not only the Holi festival….Chinese products dominate many major festivals in India.
Be it ‘Made in China’ idols of gods and goddesses or even Indian tricolor flag with a ‘Made in China’ tag. We’re seeing an influx off ‘Made in China’ products in every aspect of our lives.
The main reason behind this is that our domestic industry is far behind the Chinese counterpart in both cost of production, technology and price competitiveness.
Another threat to ‘Make in India’ is the megatrend in robotics and automation in industry. As per The Times of India, funding to private robotics companies more than doubled in 2015 to US$587 million. Since 2011, the companies have globally raised more than US$1.4 billion in cumulative funding. Last year witnessed a record 83 venture capital deals. That’s compared to 45 in 2014, 25 in 2013 and 2012, and 13 in 2011.It also make a big effect on commodity trading and share trading.
India is advantageous for its large labour force. But the changing age of Industry demanding cost effective and quality production by introducing more technology in the process so that it can meet the qualitative aspect of the product with a reduced cost of handling man power related cost and obligations.
‘Made in China’ and ‘Made by Robots’ worry us because about 13 million young Indians enter the work force every year. If they are not productively employed, then we think we have a big crisis ahead of us. Indeed, we sense that it may have even begun…
That’s why ‘Make in India’ must not fail…
That’s why Modi must not fail…