Make in India is a good program, started by BJP govt under the leadership of Narendra Modi. Corona virus epicenter Wuhan located in China, this made a change that world is looking for alternative to China. In that race first country rises in every mind is India.
World run after protective economic policies during crisis, there will exists huge trade barriers in such situations India can't dominate China. Foreign manufacturing units in China are looking for relocation. China's global supply domination will not continue.
World suspected China, and neighboring countries like Vietnam attracts companies who are willing to leave China. Previously US was did this. American companies 40%shifted to Vietnam. How India can attract such companies?
Most of the people believes that service sector best suitable for India not manufacturing. This is not true because manufacturing is not new to India.
How China become Manufacturing Hub?
China allowed foreign companies under strategic conditions that their manufacturing hub has to be in China. The policies followed by China made a strong bond with the companies and helps in transferring knowledge along with economic growth of the country.
Product should manufactured in China and marketed other than China. This type of regulations play a role in increasing foreign exchange reserves of China and stabilizes its economy.
Why Companies Starts Disinvest in China?
Foreign companies started disinvestment in China not due to the COVID-19 Crisis. For last 2years companies has been disinvesting, due to US - China trade war and to decrease the global dependency on China.
Global supply chain formation was effectively utilized by China, 20% of US consumption of goods depending on China also in pandemic situation pharma industries depends on China to formulate the needed drugs. Countries trying to derisking and decentralise the dependency that is why started disinvestment.
How Make in India makes India as Manufacturing Hub?
Make in India program and opportunities after COVID-19 can't alone do any thing for India. Implementation of strategies by redesigning industrial policies of India can make it as manufacturing hub.
Because literate work force and young man power possibility, to developed world top class industrial infrastructure, availability of minerals and resources, cheap availability of goods, all these factors owned by India made to think every country. Every crisis gives an opportunity but only opportunities can't change the country strategy and implementation plays key role.
Former RBI governor Raghuram Rajan rised a slogan of Make for India means manufacturer makes products according to the necessities of the country. In order to develop manufacturing sector in India, first we need to manufacture the necessary goods of country requirements i.e decrease the dependency of other countries on China. Means to achieve self reliance.World run after protective economic policies during crisis, there will exists huge trade barriers in such situations India can't dominate China. Foreign manufacturing units in China are looking for relocation. China's global supply domination will not continue.
World suspected China, and neighboring countries like Vietnam attracts companies who are willing to leave China. Previously US was did this. American companies 40%shifted to Vietnam. How India can attract such companies?
Most of the people believes that service sector best suitable for India not manufacturing. This is not true because manufacturing is not new to India.
How China become Manufacturing Hub?
- Started as export hub, currency fall supported this. Currency fall of China facilitate cheaper availability of goods, attracts foreign companies. Then after attracting the foreign companies China's industrial policies, regulations made to grow it as Manufacturing hub.
- Industrial zones with international standard infrastructures, airways, rail ways, road ways,skilling, wages generation work force development. Industrial needs and requirements deeply digested by China government and facilitate as per the company needs.
China allowed foreign companies under strategic conditions that their manufacturing hub has to be in China. The policies followed by China made a strong bond with the companies and helps in transferring knowledge along with economic growth of the country.
Product should manufactured in China and marketed other than China. This type of regulations play a role in increasing foreign exchange reserves of China and stabilizes its economy.
Why Companies Starts Disinvest in China?
Foreign companies started disinvestment in China not due to the COVID-19 Crisis. For last 2years companies has been disinvesting, due to US - China trade war and to decrease the global dependency on China.
Global supply chain formation was effectively utilized by China, 20% of US consumption of goods depending on China also in pandemic situation pharma industries depends on China to formulate the needed drugs. Countries trying to derisking and decentralise the dependency that is why started disinvestment.
How Make in India makes India as Manufacturing Hub?
- Make in India or make for India difference can be cleared by the following point on manufacturing.
- Manufacturing consists of two types 1.Real manufacturing and 2.Assembling. If we started manufacturing of a product then every component at least majority of components should be manufactured in India.
- Assembling means components of product imported by the country and only assembling done by India. This is not enough to grow, the real manufacturing can be followed by India then only the sustainable value addition makes India as Manufacturing hub. i.e from stage-1 to Final stage of manufacturing should be done in India.
- Sustainable Value addition leads to increase the employment and self reliance.
- Attracting MNC's( Multi National Companies) is good but not the better choice because MNC's can't generate employment compare to MSME and also MNC can concentrate on particular location can't decentralise the industry so there is a chance of many inequalities in the country.
- Promoting MSME sector is the better choice as it contributes 28% of the GDP industrialisation also can generate employment.
- Identifying our Strengths of India and utilizing rural work force and shifting the clan power from income less sector to industries by developing skilled semi skilled labor. India can become manufacturing hub.
- India has already made policies like SEZ(Special Economic Zone),EEZ(Exclusive Economic Zone),EPZ(Export Processing Zone),NHZ(National Highway Zone) due to lack of proper infrastructure and industrial plots given to already existing entrepreneurs and not utilized by fresh entrepreneurs. This due to the improper governance and system.
Make in India program and opportunities after COVID-19 can't alone do any thing for India. Implementation of strategies by redesigning industrial policies of India can make it as manufacturing hub.
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