Wcm
Introduction: The Indian Manufacturing sector is a classic example of an industry that has had great potential, but one that has been systematically done in by political ineffectiveness, entrepreneurial myopia and sheer ignorance of what it takes to succeed.
The objective of the National Manufacturing Policy is to boost the country’s share of industrial production, employment; development of world-class infrastructure and investments in India’s manufacturing space.
The Indian manufacturing sector faces a defining moment in its evolutionary path. The global economy is emerging from an extended period of sluggish performance, and growth rates across several major economies are expected to improve. A new government has taken charge in India with an unambiguous mandate for development. It has stated its intention to attract manufacturing sector investment through its Make in India campaign.
With costs on the rise in global manufacturing hubs such as China, there is perhaps an unparalleled opportunity for India to step into the breach and capture a significant share of the global manufacturing pie. Yet, the road ahead is not without challenges. India scores poorly on the indices of ease of doing business and corruption, infrastructure is poor in comparison with most other competing economies, and complex regulations related to land acquisition, labour and taxation can increase the cost of manufacturing in India.
Eliminating these obstacles is critical to unleashing the potential of India’s manufacturing sector. Business leaders are far more optimistic than they were last year. With a more conducive economic and political environment, more than half expect double-digit growth over the next 12 months, and plan to make significant investments during this period. While nearly half the companies surveyed expect margins to improve, most are not planning to increase workforce, planning instead to invest in new products, capacity additions and market expansion.
Concerns
The objective of the National Manufacturing Policy is to boost the country’s share of industrial production, employment; development of world-class infrastructure and investments in India’s manufacturing space.
The Indian manufacturing sector faces a defining moment in its evolutionary path. The global economy is emerging from an extended period of sluggish performance, and growth rates across several major economies are expected to improve. A new government has taken charge in India with an unambiguous mandate for development. It has stated its intention to attract manufacturing sector investment through its Make in India campaign.
With costs on the rise in global manufacturing hubs such as China, there is perhaps an unparalleled opportunity for India to step into the breach and capture a significant share of the global manufacturing pie. Yet, the road ahead is not without challenges. India scores poorly on the indices of ease of doing business and corruption, infrastructure is poor in comparison with most other competing economies, and complex regulations related to land acquisition, labour and taxation can increase the cost of manufacturing in India.
Eliminating these obstacles is critical to unleashing the potential of India’s manufacturing sector. Business leaders are far more optimistic than they were last year. With a more conducive economic and political environment, more than half expect double-digit growth over the next 12 months, and plan to make significant investments during this period. While nearly half the companies surveyed expect margins to improve, most are not planning to increase workforce, planning instead to invest in new products, capacity additions and market expansion.
Concerns
References: www.pwc.in/india-manufacturing-barometer-2014.pdf kpmg.com/in/BBG-Manufacturing.pdf http://www.makeinindia.com/policy/national-manufacturing/ http://dipp.nic.in/english/policies/national_manufacturing_policy_25october2011.pdf http://www.pib.nic.in/newsite/erelease.aspx?relid=78807 http://www.isid.org.in/pdf/DN1403.pdf