Manufacturing for domestic consumption needs to be encouraged

June 26, 2014 7:20 am

With a large consumer base, India is a consumption-driven economy and manufacturing for domestic consumption has to be encouraged and facilitated
 There are various reasons for India’s manufacturing competitiveness like manufacturing quality and skills, cheap raw materials, competitive labour cost, software and service support, large domestic advantage, global supply capability etc.  Ameer Munaff talks about what should be India’s line of action in this ever-challenging competitive sector.
Promising in raceSuccess of Indian manufacturing companies or enterprises largely depends on their innovative abilities, the manner in which they can launch new products at cost-effective price points and promote the same as distinct from other similar products available. India looks promising in the race as it has been constantly growing in this direction and becoming a competing manufacturing hub to Asian and other developing countries as well.
In this competitive market of speed and precision, processes that bring a huge difference by way of giving cost effective and efficient solutions for the toughest industrial applications have unlimited opportunities in global markets.
Driving factorsThe manufacturing sector in India is facing a long range shifts including changes in patterns of demand, talent shortages, adopting new technologies and innovations, and the effects of government policies to promote and support domestic manufacturing. Rising factor costs will push companies to raise productivity.
With a large consumer base, India is a consumption-driven economy and manufacturing for domestic consumption has to be encouraged and facilitated. This will help in creating large employment opportunity in the organised sector and fuelling the economic growth also.
HindrancesThough some things are in favour of India, the hindrances cannot be ignored as well which need immediate attention. These include poor infrastructure, especially in ports and shipping facilities, electricity and lengthy government procedures to start a new venture.
Ameer Ahamed Munaff, MD, FEIN Power Tools India Pvt. Ltd.
 
Pressing issuesPro-business, transparent and safe government policies and excellent business environment should exist in country giving all the MNCs a comfort zone for safe and secure investment.
Manufacturing sector is looking for steady progress, sustained growth with decent profits and long-term interests. High transportation costs are most damaging for manufacturers of products that have relatively low value density. Power crisis is also a major problem in many states. The central and state governments can help by dismantling barriers in markets for land and labour issues and speeding up procedures will invite fresh investments in to the industry.
FEIN’s roadmap FEIN is responding to the growing significance of the Indian market by forming its own subsidiary here. This setup is very important for FEIN to strengthen its position globally. FEIN India is set to be a hub for all SAARC countries for the tools which will be exported from here in future.
FEIN’s would be focusing market segments like metal, interior construction and automotive to bring in high end and niche products. Further it will be establishing an extensive dealer network across India which will be supported by their regional and branch offices.