India should make efforts to achieve Make in India’s full potential

June 21, 2016 1:48 pm

The relatively low cost of labour in India has long made the country an attractive option for establishing a manufacturing base.Dimitrov Krishnan, Vice President & Head, Volvo CE India
  The whole manufacturing sector has received a huge amount of attention, which has put it back in the spotlight. For many years, the tech sector was perhaps the most prominent industry and while that business is still incorporated into the ‘Make in India’ initiative, the fact that so many industries are covered by the initiative has really given a boost to the whole manufacturing sector.
Manufacturers will have to up their game Indian manufacturers will have to up their game, and that’s a good thing. Competition will increase, but so will local demand. There are opportunities and challenges. An environment like this will allow excellence to shine and that will help the manufacturing sector and India’s overall progress.
India is attractive for overseas investmentIndia is probably more attractive than it’s ever been for overseas investment into the manufacturing sector. The relatively low cost of labour in India has long made the country an attractive option for establishing a manufacturing base. But recent years have seen this combine with rapidly rising education levels among the workforce, plus more pro-business government initiatives to make it easier for companies to profitably build their business in India. Altogether this represents a powerful mix of incentives which will certainly drive the next wave of overseas investment in the Indian manufacturing industry.
Make efforts to achieve full potentialHistorically bureaucratic hurdles have slowed the pace and scale of foreign direct investment in India, and this is something of a cultural legacy. Some positive signs from the government of India to try and remove layers of this bureaucracy is visible, and this needs to continue. India currently ranks number 130 in the World Bank’s list of countries that are easiest to do business with. For the ‘Make in India’ initiative to achieve its full potential, the country will need to make efforts to improve in this regard.
Volvo CE’s contribution towards ‘Make in India’Volvo CE recently launched its P5320B ABG paver, which is designed and built out of its Bangalore factory. It is the first new product to roll off the production line since the introduction of ‘Make in India’ back in September 2014. The paver is built off the back of 50 years’ experience in road building machinery and will be sold across India and the rest of the Asia-Pacific market. As an initiative, ‘Make in India’ has inspired its business to make more of its facility in Bangalore. More new models are expected to come on-line having been through a comprehensive design and build program in the Bangalore plant.