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Make In India “A change yet to come”

The world is fast changing, with a rebalancing of manufacturing bases across the developed and developing nations. China, with its increasing wages and production costs, is fast losing its advantage on cost. Russia is also facing challenges in maintaining its competitiveness in these challenging times. On the other hand US and Mexico are reclaiming their share on the back of with increase in productivity and decreasing cost. Countries like Vietnam are preferred for manufacturing due to cheaper labour and their manufacturing policies.

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DQC Bureau
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MADE IN INDIA

The world is fast changing, with a rebalancing of manufacturing bases across the developed and developing nations. China, with its increasing wages and production costs, is fast losing its advantage on cost. Russia is also facing challenges in maintaining its competitiveness in these challenging times. On the other hand US and Mexico are reclaiming their share on the back of with increase in productivity and decreasing cost. Countries like Vietnam are preferred for manufacturing due to cheaper labour and their manufacturing policies.

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Under Prime Minister’s leadership, ‘Make in India’ has brought together both the industry and government to craft a new future for the Indian economy. Though Make in India has involved being beneficial for the nation but it also has challenges in different sectors to accomplish.

India on the other hand is starting from a position that is advantageous. India’s long term prospects remain intact with its core strength of human resource, a strong base of entrepreneurs and a robust and growing domestic demand.

But manufacturing comes with other difficulties: there is a burden of labour, and major portion of capital goes in land and equipments. To start off, the biggest challenge in India which people have not fully realised that one area where they will run into trouble is the ‘supply chain’. The critical item while manufacturing in India is the supply chain, not labour. Workers can be trained but the supply chain cannot be created overnight. We need better suppliers, which have technology and ability to invest adequately. You can't employ a skilled worker if your turnover is less.

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There are few areas which had been give tax exemption to certain industries years’ back, which is not possible today. Hence it’s difficult for newer industries to compete with them. The government should take measures to support the small and medium industries, rather than focusing only on the bigger project and attracting foreign investment which gets the lion’s share of attention and special support. They are must of course but the small and medium Indian industries should simultaneously grow and not be neglected.

Next being ‘Space availability’ - Smart cities need to be combined with manufacturing clusters in a manner that creates livable places for a workforce. Manufacturing does not exist in vacuum. The builders and developers have created Special Economic Zones which are missing a lot of eco systems required to survive like labour markets, livable spaces and access to markets. Another important factor being ‘Labour Availability’ India has too few skilled laborers thanks to decades of neglect in training and it desperately needs it. The shortage means India could squander the potential demographic dividend of 12 million people joining the labor market a year, just when China's workforce is expected to lose 6 million over the next decade because of its aging population.

“Make in India” campaign is clearly designed to attract foreign investment by highlighting the ongoing changes. It has helped ease restrictions on foreign investment including property projects and increased manufacturing ensures that the benefits reach the youth of the nation. The yearly manufacturing rate estimated in 2013 was 13% and gradually in 2015,it has rose to an unexceptional 25%.

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The campaign ensures that the government is also closely looking into all the regulatory processes for small and medium companies participating in Make in India with a view to make them simple and reducing the burden of compliance on investors. It aims to transform the economy from services-driven growth model to labour intensive manufacturing-driven growth.

As far as Zebronics in current and near future is concerned our projects portrays that we have very efficient and innovative Research and Development team for developing new array of products. Our products have been designed keeping in mind the new generation and technology driven forces. While developing the products we make sure that the products are suitable to Indian consumer and also we are careful about the production process and resources available to make the product as efficiently as possible. We at Zebronics are fully committed to Hon’ Prime Ministers vision of Make in India, and we believe that it will take the nation to a whole level in manufacturing.

Authored by Rajesh Doshi, Director Marketing, Zebronics

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