After IT, it’s time to take another big step

By admin June 26, 2014 5:53 am IST

Vietnam or Indonesia are creating strong competition to India as they are also trying to build up their manufacturing sector
Firmly focused on the continuous development of full-featured, location-aware solutions, NNG is committed to provide excellence for its business partners and end users alike. Enjoying some of the best premier automotive manufacturers as business partners, NNG’s primary business objective is to become a leading global automotive supplier. Peter Bolesza talks about the pros and cons in accelerating Indian manufacturing sector.
Competitive environmentMore and more companies that require a lot of inexpensive factory workers are facing difficulties in China. Some factors like growing wages, changing labour law are making it difficult and less profitable for big manufacturing firms to operate in China. This situation is making such companies to look for alternative solutions in the South Asia region, also investigate possibilities in countries like Vietnam or Indonesia. These countries are creating strong competition to India as they are also trying to build up their manufacturing sector. India is trying to get into this field for a long time now, targeting to change the perception of the country.
Ray of hopeThe planned Delhi-Mumbai Industrial Corridor (DMIC) looks really good on paper. However, its execution is more important. As this project highlights, major encouraging factors are the availability of stable water supply, electricity, proper transportation and logistics facilities and labour law/taxation as well.
It would be good if Indian government continues its efforts to convince the foreign sources, especially American and European companies.Not to ignore, huge working population of India can be a competitive advantage for labour-heavy manufacturing. India has already shown its capability to succeed in IT and service outsourcing industries, now it’s time to take another big step.
Present challengesNo doubt the biggest obstacle here is the low level of infrastructure. Inflexible labour law and the difficulties in taxation are some major drawbacks when someone is considering their investments into this region.

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