Make in India is one of the most ambitious initiatives by Prime Minister Shree Narendra Modi. It was launched in September 2014. It is devised to make India a global manufacturing hub. It was a powerful, stimulating call to India’s citizens and business leaders rather an invitation to potential partners and investors around the world.
Along with making India a global manufacturing hub, the emphasis was also on enhancement of skills and creating more job opportunities. And even after the completion of 2 successful years, it has been a fruitful and prosperous initiative, reaping results in the correct direction or even more than as expected. Companies are now looking towards India for starting of their new business or expansion of the same.
Saying about all these, let’s have a quick look at the key drivers of Make in India. Along with the efforts of the Government, different organizations and everyone involved, there are some driving forces which are making the Make in India initiative a big success.
1. Building Competitiveness through Operational Excellence: Today, there is competition in each and every stage; every sector, and every industry. With the increasing competition, organizations need to develop themselves to beat the competition. With such hyper competitive market environment, the competition is getting intense. Increasingly organizations from all sectors and all sizes are looking at operational excellence (OE)/ world class manufacturing (WCM) practices to eliminate inefficiencies across their value chain which ultimately helps them drive costs down and deliver quality goods and services to customers. By implementing various drivers of Total productive maintenance, it can prove to do wonders in terms of maximizing equipment effectiveness through the optimization of equipment availability, performances, efficiency and product quality. Efforts in this direction can lead to building competitiveness with operational excellence as the tool and can lead to more efficiency, least costs and enhanced productivity.
2. Zero Defect Zero Effect: While addressing the nation on 68th Independence Day, Narendra Modi had commended, “We should manufacture goods in such a way that they carry zero defect and that our exported goods are never returned to us. We should manufacture goods with zero effect that they should not have a negative impact on the environment”. It basically signifies Zero Defect in the goods manufactured and Zero Effect on the environment due to the manufacturing of goods. The ZED scheme is an integrated and holistic certification system that focuses on quality, productivity, energy efficiency, pollution mitigation, financial status, human resource and technological depth including design and IPR in products and processes.
3. Skill Development: India being a labor intensive country, the need for Skill Development plays a centre stage. In next 20 years, the labor force in the industrialized world is expected to decline by 4%, while in India it will increase by 32% as per the sources and reports. This itself is a driving force urging for skill development. Skill Development is an important aspect for which various policy initiatives have been taken by the Government of India. Also, special emphasis has been laid on women empowerment with establishment of 5 Regional Vocational Training Institutes, providing training to women across India by NSDC Training Partner.
4. Better Policies: Goods and Service Tax often referred to as GST is the biggest reform in India’s indirect tax structure. It is set to replace all indirect taxes levied on goods and services and will come into effect from April 2017. Some of the anticipated benefits of GST are: Benefit to Telecom Sector, Pharma Sector, Automobile, FMCG, Real Estate, etc. Due to unification of Tax system the system of various, uneven taxes won’t prevail after the implementation of GST. This would ease the process of manufacturing also bringing down the costs. This would act as a driving force for manufacturing more and actually make the Make in India program a big success, more than what was anticipated.
Under ‘Make in India,’ the country is being projected as one of the most attractive destinations in the world to set up manufacturing. According to a World Bank report, manufacturing in India accounts for about 16 per cent of GDP, a level that has remained more or less unchanged over the past two decades. This is relatively low when compared to the 20 per cent plus share in countries like Brazil, China, Indonesia, Korea and Malaysia (even after taking into account differences in per capita incomes). However, if things are done right, Make in India initiative will turn the wheel for manufacturing in India.
Written By Faber Ramya Pillai.