What obstruct India to be a manufacturing hub ?
I had some problem with my set top box and gone to my service provider 7 star to get it replaced. He replied,' Sir, you have to wait for a week's time as the supply delayed from China'.
I was surprised that a simple device like set top box, where no rocket science is involve, the nation has to depend upon our political foe China. The country who has captured a large part of POK, fought war with us and still involved in skirmishes in Ladhakh, Arunanchal, we still prefer to import things which may easily manufactured locally. I probe little further, there are some factories in India making such boxes but these are high on price and low on quality. The service provider do not have choice but to go for imported one.
Just visualise the electronic product manufacturing scene, story is very similar. Gadgets ranging from TV, mobiles, tablets to gaming console, imported one are cheaper than the locally manufactured or assembled one. So what then is the point to set up a factory that manufacture the product from scratch. Even that assembly line operation, which is called screw driver process, the operation is limited. As per an estimate, out of the total 8 million flat TV sets, only 5 million are assembled in India. Similarly less than 5 million set top boxes are manufactured in India while the demand is likely to be almost 10 times during next two to three years. Take other products like mobile phones, there are manufacturing units, but usually the low end one. Let us understand clearly, that in case this manufacturing is done locally, it may tilt balance of payment in our favour saving lot of foreign currency as well as help in creating new jobs . Is it not surprising that a nation which can develop intricate technology to propel a vehicle to Moon and Mars at much lower cost than the prevailing market, is depending upon manufacturing abroad for consumer and electronic items.
Think and act Different as well as Fast
Do we need another Gandhi to infuse spirit of Swadeshi ? As per an estimate 65 per cent of $57 billion in the area of electronic is met by import. Think even if we lower down to 35 per cent we may save $25 billion in terms of foreign currency.
Main impediments are lack of quality consciousness on the part of manufacturers, and also innovation. Government on it's part is responsible in creating totally unrealistic tax structure for manufacturing units. Government should encourage all IITs , NIITs and other engineering colleges to convert into industry friendly research and innovation labs and see to it that these innovation should be transferred to the manufacturing units. You will be surprised that many of the gadgets sold globally are designed in India. more than 100 design labs are innovating such products in our country. Based on these designs contract manufacturers in China, Taiwan, Malaysia, Vietnam and Korea make products that are shipped to India and else where.
It is also important that manufacturers should not be treated as criminals and cheats by government machinery. I know so many enterprising manufacturers who after being frustrated with the pressures from so many government agencies shifted their manufacturing base to China ! Apart from that manufacturers should always be encouraged to adopt world class technology, there should be kind of concession tax if a unit goes for better technology. I give you example how governments encourage met with a Chinese researcher in USA, of course now an US national who worked in the filed of drug manufacturing. Last year Chinese Government invited him to be mentor for local manufacturers. Instead of converting India as a Market Place for manufacturers abroad, government should try to create a ecosystem where entrepreneur should come forward to indulge into adopting best technology and technique in manufacturing. Where ever government think of creating manufacturing zones, basic infrastructure like power, water, communication should be ensured.
I was surprised that a simple device like set top box, where no rocket science is involve, the nation has to depend upon our political foe China. The country who has captured a large part of POK, fought war with us and still involved in skirmishes in Ladhakh, Arunanchal, we still prefer to import things which may easily manufactured locally. I probe little further, there are some factories in India making such boxes but these are high on price and low on quality. The service provider do not have choice but to go for imported one.
Just visualise the electronic product manufacturing scene, story is very similar. Gadgets ranging from TV, mobiles, tablets to gaming console, imported one are cheaper than the locally manufactured or assembled one. So what then is the point to set up a factory that manufacture the product from scratch. Even that assembly line operation, which is called screw driver process, the operation is limited. As per an estimate, out of the total 8 million flat TV sets, only 5 million are assembled in India. Similarly less than 5 million set top boxes are manufactured in India while the demand is likely to be almost 10 times during next two to three years. Take other products like mobile phones, there are manufacturing units, but usually the low end one. Let us understand clearly, that in case this manufacturing is done locally, it may tilt balance of payment in our favour saving lot of foreign currency as well as help in creating new jobs . Is it not surprising that a nation which can develop intricate technology to propel a vehicle to Moon and Mars at much lower cost than the prevailing market, is depending upon manufacturing abroad for consumer and electronic items.
Think and act Different as well as Fast
Do we need another Gandhi to infuse spirit of Swadeshi ? As per an estimate 65 per cent of $57 billion in the area of electronic is met by import. Think even if we lower down to 35 per cent we may save $25 billion in terms of foreign currency.
Main impediments are lack of quality consciousness on the part of manufacturers, and also innovation. Government on it's part is responsible in creating totally unrealistic tax structure for manufacturing units. Government should encourage all IITs , NIITs and other engineering colleges to convert into industry friendly research and innovation labs and see to it that these innovation should be transferred to the manufacturing units. You will be surprised that many of the gadgets sold globally are designed in India. more than 100 design labs are innovating such products in our country. Based on these designs contract manufacturers in China, Taiwan, Malaysia, Vietnam and Korea make products that are shipped to India and else where.
It is also important that manufacturers should not be treated as criminals and cheats by government machinery. I know so many enterprising manufacturers who after being frustrated with the pressures from so many government agencies shifted their manufacturing base to China ! Apart from that manufacturers should always be encouraged to adopt world class technology, there should be kind of concession tax if a unit goes for better technology. I give you example how governments encourage met with a Chinese researcher in USA, of course now an US national who worked in the filed of drug manufacturing. Last year Chinese Government invited him to be mentor for local manufacturers. Instead of converting India as a Market Place for manufacturers abroad, government should try to create a ecosystem where entrepreneur should come forward to indulge into adopting best technology and technique in manufacturing. Where ever government think of creating manufacturing zones, basic infrastructure like power, water, communication should be ensured.
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