Goals are clear, but more to be done

June 29, 2015 2:43 pm

To ensure the country’s place as a global manufacturing powerhouse, the government, industry and civil society must work in tandem…
Rajesh Kushwaha, Managing Director, Multi Axis CNC Robotics
 Founded in 2001, Multiaxis set-up a small workshop for re-sharpening solid carbide cutting tools in Delhi, and won the trust of its valued customers and then entered the CNC cutting tools for Dies and Mould. Multiaxis is the sole distributor for ‘AKEN Precision Cutting tools’. Multiaxis’s previous experience in dies and mould, it has settled down as a major competitor in the field of CNC cutting tools. In early 2010, it entered the space of manufacturing CNC Machines at Gurgaon and then started manufacturing CNC milling machine.
Rajesh Kushwaha, Managing Director, Multi Axis CNC Robotics shares his views on the ‘Make in India’. He delves into details of the initiative and gives us profound insight into the ‘Make in India’ movement and what the government can and is doing, specific to his industry.
Initiative hopes to increase revenuesSpeaking of the aim of the initiatives, Mr Kushwaha says,” The major objective behind the initiative is to focus on many sectors of the economy for job creation and skill enhancement, increase GDP growth and tax revenue. The initiative also aims at achieving a high quality standard and minimizing the impact on the environment. The initiative hopes to attract capital and technological investment in India.”
Government should convince manufacturersThe ‘Make in India’ campaign to revive manufacturing will become a success only if the government manages to convince companies to manufacture in India. The key decision factors for manufacturers are – size of market and access to market, good infrastructure, and availability of skills, stable and competitive fiscal regime and ease of doing business.
“India is a large market. If we translate the requirements of the national programmes of 100 smart cities, industrial corridors, digital India and making SMEs globally competitive into a requirement of cement, steel, computers, furniture, locks, hinges, construction equipment, etc, it may give voice to the accelerating demands for manufactured goods within India,” says Mr Kushwaha.
Absorb semi- skilled workers“As India veers toward a higher growth curve, it faces destabilising forces arising from the magnitude of its growth. There is an increase in the available labour force without the required increase in employment opportunities proportionate to economic growth,” observes Mr Kushwaha.
“Attaining a near double-digit growth rate without a significant increase in manufacturing may prove to be challenging. Labour requirements in the primary sectors are falling quickly due to increasing mechanisation and spurt in productivity. The manufacturing sector can absorb semi-skilled workers who are challenged by the fast-growing services sector as well as the primary economy of agriculture and mining,” remarks Mr Kushwaha.
Impact of economics will affect the entire chain“Roughly 16 per cent of Indian labour is still in the primary sector, compared to 6 per cent in other BRIC countries. As India charts its way towards a labour utilisation structure consistent with fellow BRIC nations, manufacturing as the secondary sector must also gain momentum,” says Mr Kushwaha.
“The economic impact of manufacturing in India will go beyond direct employment. It will create jobs in the services sector and allied services like logistics, transportation, retail etc. Needless to say, since manufacturing would require free flow of raw materials and finished goods, improving logistics infrastructure such as port-to-inland connectivity, cargo airports, etc. would be imperative and these developments promise to transform India into a global manufacturing hub,” suggests Mr Kushwaha.
Lack of clarity on reforms“However, with little fiscal stability and no clarity on when GST will be implemented, one cannot expect large manufacturing investments to flow into India. There are still too many hindrances to conduct business in India. With a virtual stagnation from 2010 to 2014, manufacturing in India continues to be crippled by issues such as shortage of coal, inability to acquire land and tax disputes,” says Mr Kushwaha.
CII- KPMG report highlights action planKPMG and CII recently completed a report which identified nine key action items to make India conducive for large-scale manufacturing. These include streamlining investment approval, facilitating land acquisition processes, creating an appropriate labour development ecosystem, efficient and effective enforcement of laws, facilitating greater cross-border transactions, creating clear exit guidelines, rationalising taxation regimes and technology enablement of the government.
Work in tandem to restore confidenceWhen developed economies like the United States are renewing focus on reviving manufacturing, ‘Make in India’ is not just an option but a national imperative that is needed to keep pace with global growth. “Transforming the vision to reality requires a concrete roadmap that will support not just the manufacturing of today, but also of the future, which may involve technologies such as 3D printing with its own set of challenges,” says Mr Kushwaha.
“To ensure the country’s place as a global manufacturing powerhouse, the government, industry and civil society must work in tandem to restore investor and public confidence in ‘Make in India’,” says Mr Kushwaha.
________________________________________________________________________________To ensure the country’s place as a global manufacturing powerhouse, the government, industry and civil society must work in tandem…Rajesh Kushwaha, Managing Director, Multi Axis CNC Robotics