It's been 6 years since the launch of the Make in India program in 2014. However, as things stand today, the program has not taken off. As per the world bank data, when the Make in India campaign was launched in India, India's manufacturing output in 2014 was 307.205 billion US$ (Current US$). And in 2019, the output was approximately 400 billion US$. In other words, the manufacturing sector grew at a CAGR of approximately 5.4%. It is in sharp contrast to the growth of the manufacturing sector from 2004 to 2014 when the output grew at a CAGR of 10.59%. Therefore, what happened? Why did India's manufacturing output fall down instead of growing at a higher rate? Were there global reasons? No, because during the same time, the same sector in countries such as Vietnam, Bangladesh grew. So, what could be the reasons? Or put it simply, how can we make the Make in India program successful? These are the following steps the government of the day can take in order to boost the Make in India program.

• Involve entrepreneurs

The Make in India policy can't be developed in isolation. Bureaucrats and economists with no manufacturing subject knowledge can't be entrusted with the task of making a policy framework for an important sector such as manufacturing. These professionals are certainly needed to implement and measure the policy, however, when it comes to the design and development of the Make in India policy, the entrepreneurs shall be brought on board. These entrepreneurs shall not be left only to give their opinions on an online forum. The entrepreneurs shall be involved in formal policy-making roles. The entrepreneurs have spent years working in the sector. They understand the nitty-gritty of a hard subject such as manufacturing. Machining Inserts They understand what's needed to revive the Make in India program. They understand what's missing from the current Make in India policy framework. Therefore, it's time, the government of the day reconstitutes the Make in India policymaking committee. Let the sector be left to its entrepreneurs.

• Build manufacturing infrastructure

Besides involving the entrepreneurs in the formal policymaking roles, the second step the government must do to succeed in the Make in India initiative is to realize that at present manufacturing infrastructure is missing in the country. Manufacturing infrastructure is different from physical infrastructure such as electricity, roads, ports, etc. Manufacturing infrastructure means the facilities or resources that can enable competitive manufacturing Cutting Inserts in the country. Therefore, having realized that at present manufacturing infrastructure is missing, the next logical step is to develop the same infrastructure. Again, the government of the day must involve entrepreneurs to understand what facilities and resources are needed that can enable the growth of Make in India program. Talk to any entrepreneurs, small or large, and they all would list down the facilities and resources that are needed to give a much-needed boost to our manufacturing. Why should a large country like India generate a manufacturing output of merely 400 billion US$ in 2019 in comparison to China's manufacturing output of 4 trillion US$ (which is almost 10 times the size of the output generated by Indian manufacturing)? Therefore, what's needed is the urgent push to develop the much-needed manufacturing infrastructure in the country to succeed in the Make in India program.

• Encourage startups

Now, the next critical step is to encourage startups. So far, the Make in India campaign has focused on only attracting global manufacturing companies to India. However, all these global companies would only come to India if there is growing market size and growing demand for their products. Moreover, all these global companies would leverage hi-tech machinery to produce goods. Therefore, the employment generation would be limited. Domestic startups shall be encouraged to produce common household goods that the global companies won't produce. The need of the hour is to create an ecosystem wherein startups are encouraged and over a period of 8-10 years, India is able to produce 8-10 million manufacturing startups of substantial size. All these startups would be producing common household goods not just for India but for the global marketplace. These domestic startups would be able to tap into the resources and facilities developed under the manufacturing infrastructure. Without these resources and facilities, the startups won't be able to take off. However, if these startups take off, then, India can certainly succeed in the Make in India program and at the same time generate millions of jobs.

Posted by: jasonagnes at 03:23 AM | No Comments | Add Comment
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