Make in India: A positive impact on manufacturing sector

June 23, 2016 4:35 pm

The very immediate advantage of “Make in India” initiative for Indian manufacturing sector would be a substantial increase in the domestic consumption in any market segment.K Manickam, MD, CAD Macro Design & Solutions, Chennai
 It will be a great advantage for global investors to collaborate with Indian market and to be a part of “Make in India” initiative, says K Manickam, Managing Director, CAD Macro Design & Solutions, Chennai. He also elucidates why India is the preferred destination for global investors.
Accelerating overall growth of India IncEvery country takes initiative like “Make in India” to move forward in their industrial development to sustain their economic growth to internalise the same into welfare of their civil community. Eventually, the current status of industrial infrastructure, logistics and resources available, the vision and scalability of such initiatives differ for each country. Based on this bottom-line only, “Make in India” initiative got initiated by Indian government to accelerate the overall growth of the Indian enterprises and their long-term sustenance with global identity. Obviously, this initiative had created a definite positive impact to the Indian industries as the policies and implementation roadmap of “Make in India” in terms of proposed funding support, R&D and sector specific cluster deployment systems would motivate the deserved enterprises to take an edge over their dreams in the domestic market.
An abundance of opportunities The very immediate advantage of “Make in India” initiative for Indian manufacturing sector would be a substantial increase in the domestic consumption in any market segment. This eventually attracts more industrial players to increase the national GDP which has the current average of 15 per cent to estimated number of 25 per cent in the forthcoming years. Beyond this, the cost of production could drastically go down as the import of spare parts, its related taxes and duties and timeline of importing materials would come down very drastically from the current level. Definitely, Indian players can take a lead over other global competitors in this contest to take advantage over domestic market in terms of low cost and higher margin. Apart, proposed special economic zones, industry specific clusters, sector-wise incentives, R&D incentives, export incentives, and state incentives are the key advantages for Indian players to utilise at this point of time to contribute in the domestic manufacturing sector initiatives through “Make in India”.
Extravaganza for foreign investorsIt is very much visible for anyone to understand that it will be a great advantage for global investors to collaborate with Indian market and to be a part of “Make in India” initiative as most of the advantages explored in the system are applicable to FDI by freezing 49 per cent as the CAP. Beyond any proposed advantage in “Make in India”, the world’s best research institutes of India and amazing number of intelligent human resources at low cost are the key driving factors for global investors. Apart, the attitude of growing consumption in any segment has raised the potential of sales in the domestic market when it comes to non-engineering segments like FMCG and home appliances. At the same time, engineering sectors are having plenty of potential to produce products with international standards. Obviously, these can be the strategic fronts for any global investors to think of working around the “Make in India”.
Roadblocks and RoadmapsThe main roadblock estimated in the “Make in India” initiative would be the gap observed between the policy makers, implementation agencies and the right reach out of advantages to the deserved audience. Apart from that, lack of robust transport networks would be the most critical bottleneck for manufacturers to achieve timely production and dispatch to the market place. On the industries’ side, lack of passion for entrepreneurs to go for new ideas, its product design, will power to come out with an own product line in the domestic base are definitely the major roadblocks for “Make in India” program. By and large, the facilitation capacity of implementation agencies to balance both sides in terms of regulations, single-window clearance systems, timely funding, no corruption and ensuring sustained measures to keep the momentum on the concept are the only way to solve the explored road blocks of “Make in India” initiative.
Mapping the advantages of “Make in India”As a 14-year old CAD/CAM software company for global market, CAD Macro Design & Solutions, Chennai have strategies to bring out Human Machine Interface (HMI) modules to CAD Macro’s CAM products to ensure better comfort to customers. Eventually, these kinds of HMI modules could save time in the production floor during CAM process which in turn could increase the overall productivity of the client network at any given point of time.