Produce competitively priced products for global market

By admin June 26, 2014 7:15 am IST

Indian manufacturing sector needs to have a complete package of innovative products, reliable and lean manufacturing process, to produce consistent quality of the products
 Manufacturing activities across the globe have gone through a turbulent time during the past couple of years. However, India has shown sustainable growth in manufacturing through consistent focus on innovation and talent development. Gautam Ahuja explains how India is doing everything to establish itself as next manufacturing centre.
India is trying everythingIt’s not at all a secret anymore that growth in the coming decades will come from the developing world. As Chinese wages are going up and the labour market is getting tighter, India is trying everything to make India as the manufacturing hub of the world.
In order to woo foreign investments, the government has implemented many favourable policies. India has also a large working population and this can be a competitive advantage for labour intensive manufacturing. Not to forget India’s large domestic market, which has more than 600 million rural consumers.
Indian manufacturing sector needs to have a complete package of innovative products, reliable and lean manufacturing process, to produce consistent quality of the products. India has a large base of skilled workforce and engineers, and more are graduating every year. English as a medium of communication is understood by most, which is a strong asset for India. The focus should be on economies of scale to produce competitively priced products, for the global market.
Pushing factorsTo a large extent, manufacturing in India is dependent on the automotive and auto component industry. The outgoing government had already taken some steps to reduce the excise duty, to give manufacturing a push. Further, the RBI should reduce the CRR and Repo rates to increase liquidity, so that loans are available at a lower rate of interest. This will stimulate growth in a lot of industries. With the general sentiment also improving, it will lead to overall growth in the manufacturing sector.

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