Six ways India can ensure "Make in India" is a big success
India’s engineering talent pool is second to none. Indian engineers have skills that you cannot find anywhere else in the world. Specifically, Indian engineers have a rare capacity for devising creative solutions with limited resources when compared with the engineers in the West. At a time when the prime minister is giving his full support to the manufacturing sector via the Make in India campaign, opportunities must be explored far beyond what was previously thought possible. Here are a few areas that need immediate attention to translate this vision into success:
#1. Skills, skills and skills: We as an industry require graduates with specific skill sets. When the economy is booming with opportunities and new career goals, skills specific to the job profile are imperative to sustain in this competitive world. The government must invest more and more in developing truly skilled graduates – not just degree holders. As an organisation, we try to create an enabling environment where employees are encouraged to upgrade and expand their skills throughout their lives. Some of the sustainability efforts in this direction include programmes such as Ready Engineer for college graduates and STEM learning programmes for school going children.
#2. Relax import restrictions: In this mechanised world, it is impossible to thrive without the integration of technology and infrastructure. In order to support all the investment that will go into developing the manufacturing sector, we need liberal taxation policies to facilitate technology imports. There are some legacy laws related to the imports of components and intellectual property rights that India must do away with at the earliest.
#3. Develop infrastructure: It is easy to spin off products at a manufacturing plant, but what about their transportation to the ports and other locations? Gujarat has managed to undertake infrastructure projects that ensure a robust supply chain of goods and services. The government must take cues from this state to extend the plan to other states.
#4. Spur innovation: Unfortunately much of India’s manufacturing footprint is focused upon building products that are designed and developed outside of India. Increasingly, if India is to realise its potential as a global manufacturing hub it must take responsibility for innovating and developing the products that it then manufactures for sale into India and around the world. Product leadership will come from a commitment to innovation, not manufacturing excellence.
#5. Create knowledge clusters: For the innovation capabilities to evolve, India needs a convergence of capital, talent, entrepreneurial spirit, and knowledge. With what Silicon Valley could achieve from this model in just twenty years, why can’t India start thinking on these lines too? India would do well to inspire its youth to be leaders of tomorrow.
#6. Avoid focusing on short-term economic benefits: There are significant short term opportunities particularly in industries such as aerospace. India is likely to place orders on multi-national defense contractors in the next 12 months that will position a huge requirement for offset manufacturing. Whilst there is an enormous potential to leverage this "build to print" opportunity, India must leverage this experience and build indigenous capability for developing world-class products in India. Building products under license can be a great catalyst for developing the right type of capability but it is imperative that it is seen as a stage on the journey; not an end goal in and of itself.