The Manufacturing Sector of the India has not contributed much to the income growth when it comes to its stake in the merchandise export, it is declining too. The manufacturing sector was seen as the generator of the employment but it didn’t perform as expected. The workers aren’t covered with any sort of Social Security too.
A brief insight to the challenges:
There are various factors that determine the base of any Manufacturing sector, productivity is the leader. The productivity of India’s manufacturing sector is not much when we compare it to the likes of other international manufacturing sectors. Even though India has surplus cheap labour, Indian manufacturing sector is lacking the skill. The firms tend to operate on small scales to save taxes and the labour formalities. It is a widely accepted fact that the manufacturing thrives on a well-functioning fully-fledged infrastructure, the country lacks the quality infrastructure and other amenities.
We can refer to power outages, deprived transport services and more for the reference. India needs to leverage the abundant supply of its workforce to emerge as a leader in the global market sector. The increase in automation at every level of manufacturing is responsible for a dull performance too. One of the main challenges India face is from the South-East Asian countries. Those countries despite their small size are bitterly integrated into the global market supply chain.
India, the new China?
India has the booming potential to become the new China due to an array of factors such as an abundant supply of cheap labour, deemed market & economic growth & favourable demographics. A commendable number of jobs are required to coup-up with the population of the country like India. The country has a young population across its vicinity, the key factor is the low-cost manufacturing, it is vital for the country. Harnessing the opportunities involves the sorting of deft diplomacy, trade pacts and internal reforms amidst the manufacturing sector.
Lack of coordination amidst the state entities is the highlighted problem we face, completion of the stalled projects is crucial. Infrastructure needs to be developed to bring industries, not the opposite.
India today has the potential to boom its manufacturing sector’s contribution to its GDP up to 25% by 2025. The government is the key player here, the government needs to align industries, public sectors, stakeholders and private companies by acting as a central pivot. Labour reforms, social reforms and elimination of the business difficulties needs to be taken care of.
The Indian Government recently launched the prestigious “Make in India” project to encourage the investors and aid the manufacturing sector of the country. India can become the next manufacturing hub, provided timely execution of generous reforms and policies. The vast economy of the India offers immense opportunities for the domestic as well as international entrepreneurs. Leveraging whatever we have for the best is in the hand of the Government and hence the people. The development model needs a bit of revamping to generate adequate employment, the country has a lot to offer.
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