The priority must be to create a strong domestic manufacturing base which will give an impetus to investment, employment and exports. Our strategy should be based on indigenisation and import substitution. The government must provide opportunities for domestic companies to participate in sectors in which the country continues to depend on imports. Ironically, in all these industries, there are several Indian companies with skills, capabilities and technologies to meet the country’s requirements. Some of our companies are world leaders in their respective businesses but unfortunately are denied a level-playing field to compete in our own market. On the other hand, foreign companies are using opportunities in India to strengthen their businesses and their country’s economies.
Should Indian manufacturing be benchmarked against global standards?
Over the past decade, a large number of Indian manufacturing companies have globalised their businesses. Some of them have emerged as global leaders because of which India has gained recognition as a global manufacturing power and a key player in the new knowledge age. The emphasis on innovation and technology in our companies has resulted in a few of them establishing global benchmarks in product design and development, manufacturing practices and human resource capabilities. However, there is no room for complacency.
Should Indian companies look at more exports and value addition?
Indian companies’ performance over the past year shows that the significant exporters are relatively less impacted by the domestic slowdown. From an operational perspective, exports challenge companies to design, develop, manufacture and supply products to discerning customers in global markets. This in turn motivates companies to scale up the value chain, which results in higher realisations.
What are the challenges to the sector’s revival?
There are challenges at the policy as well as operational level. From the policy perspective, we need to accelerate our efforts Continue Reading