Build export capabilities to be globally competitive

June 29, 2015 12:37 pm

…it will take at least another 6 to 9 months to see the movement happening on the ground level with the start-up of new investment cycles.
Sanjeev Ranjan, MD, International Copper Association India
 ICA India contributes mainly through its catalytic role, accelerating changes and transforming the long-term markets for copper in a sustainable way through its various major initiatives like building construction and sustainable electrical energy.
In an interview with OEM Update, Sanjeev Ranjan, MD, International Copper Association India, shares his views on the copper industry, economy and the ‘Make in India’ initiative.
Manufacturing is getting the push it needsCurrently manufacturing contributes approximately 15 per cent to the GDP of our economy. “If India has to reach growth rate in double digits, then contribution of manufacturing to the GDP has to reach 25 per cent. Thus ‘Make in India’ will not only help to make manufacturing grow but provide meaningful employment to the youth of India,” opines Mr Ranjan.
Campaign will take time to gain momentumMr Ranjan also talks about the time that will be required for the initiative to become a success. He says, ”The government is trying hard to sell various opportunities that exist in India through ‘Make in India’ campaign but it will take at least another 6 to 9 months to see the movement happening on the ground level with the start-up of new investment cycles.”
The Copper industry has a distinct role to play as it will give the industry a competitive edge by its application and usage in energy efficient applications and to help meet the growing aspirations of India through its applications in heat exchangers of Room Air Conditioners (RAC). Modernisation of railways and defence will also help to promote copper consumption as dedicated freight corridors and high speed trains will entail better and more efficient copper based applications finding its way.Slowdown in global economy can impact India Mr Ranjan observes, “Fall in crude oil and energy prices has proved to be a boon to help cap the CAD (current account deficit) but on the other hand, virtual deflation in Europe and only gradual improvement in the US economy is proving to be a drag. The much needed push for exports is getting stymied on account of it. The need of the hour is economic growth which focuses on generating employment for the youth and also pushes for inclusive growth opportunities. Infrastructure can be the medium which helps to address this in a big way.”
Government has created transparent system According to Mr Rajan, the old template of public-private partnership (PPP) has proven to be a non-starter and engineering, procurement and construction (EPC) model is what is needed. Government-led spending in infrastructure  especially in areas like power generation and transmission, roads, ports and airports can provide the much needed fillip and can help to bring in greater participation by private enterprises. “I strongly believe that there has been a creation of an open and transparent environment through both government policies and RBI. Also it would be great if there are no negative news like a failed monsoon or any major global economic failures in any part of the world,” asserts Mr Ranjan.
Stay focussed on domestic consumption“To a large extend, India is driven by domestic consumption and we need to keep stoking the fire through government spending followed by easing of interest rates which can be the much needed stimulus for our economy to improve. This is based on my reading of our exports which continues to falter and till the time the global situation improves, we stay focussed on domestic consumption as we build export capabilities on the scale which can make us globally competitive or source more manufacturing opportunities to India,” says Mr Ranjan.
ICA provides assistance to industry and authorities ICA conducts individual program strategies to assist the appropriate authorities bringing about improvements in policies, standards and codes, end use practices and enabling the supply chain. It encourages safe house wiring practices in the building construction sector. Creating awareness and imparting education on power quality, through the Asia Power Quality Initiative platform. ICA has taken steps that help to improve the life of the people. ICA promotes the use of energy efficient motors for energy savings in industries. It also encourages the use of high efficiency motors and pumps in the agricultural sector. ICA promotes low loss distribution transformers that reduce distribution losses in the power sector. ICA also promotes 5 mm Microgroove Copper tube heat exchanger technology to OEMs.