Improve regulatory framework, develop skills

June 26, 2014 5:10 am

The manufacturing industry is considered as the backbone of any economy. It fuels growth and employment generation as well Having its presence in 56 countries and continuous investing in new technologies helps Grundfos to serve customer requirements efficiently. “Innovation and sustainability are at the heart of every Grundfos product,” says Mahathi Parashuram. She analyses India’s possibilities to become global hub.Backbone of allThe manufacturing industry is considered as the backbone of any economy. It fuels growth and employment generation as well. Certainly these are some of the important factors that help nation grow. Apart from this, manufacturing sector acts as a catalyst for agriculture and service sector too. Improving the regulatory framework for industry and skill development are critical in helping India become a global manufacturing hub. In addition to this, increasing the special economic zones, helping in the growth of SMEs, and technological advancement through R&D will be vital in accelerating the growth of the manufacturing industry in the country.Improving the current pictureWe have seen that manufacturing has emerged as one of the key growth drivers for the Indian economy. However, government intervention is required in restructuring the policies for the manufacturing industry and for the development of human capital to ensure that these resources are utilised effectively. At this stage, opening the gates for foreign investment is also crucial. With greater emphasis on policy reforms and providing investor-friendly environment, India can attract foreign players as well. We also have to focus on ensuring that the environment is conducive for SMEs to grow and flourish.Depressing areasThere are some areas that have been demoralising and depressing the growth. Major one is the gap in the demand and supply of energy is a major challenge affecting the Indian manufacturing sector. Further there is a lack of stringent energy efficiency norms which needs to be addressed promptly. Other key challenges that the industry is facing are a shortage of skilled workforce, poor infrastructure facilities, lack of focus innovation and sustainable products.How govt can helpIn the wake of a looming power crisis across the country, it is the government who can play a vital role in getting things done. It is imperative for the new government to help push the sustainability agenda further by promoting generation of renewable energy and the development and use of energy efficient products through subsidies. To encourage the energy efficiency labelling and ratings of products is also important. These moves will definitely open up the market for eco-friendly products making India more competitive on this front.Future line of action for GrundfosGrundfos India’s priority is to focus on the Indian customers, their growing needs and to fill the gaps in the market.After increasing the capacity of its Chennai plant in 2010, Grundfos India has now acquired land in Sriperumbudur near Chennai to construct an additional production facility. This facility will have a manufacturing and assembly centre, distribution centre and R&D centre. This R&D centre will design and build products ‘in India for India’.Another plan is to re-engineer/ re-specify the existing European products to make them suitable for the Indian market. This would rather help ensure that the level of localisation and local production will increase to at least 80 per cent.Mahathi Parashuram, Head, Public Affairs, Grundfos Pumps India