India is one of the world’s fastest-growing economies and is the world’s third biggest economy in terms of purchasing power parity (PPP). During the next four decades, Indian GDP is expected to grow at an annualized average of 8%, making it potentially the world’s fastest-growing major economy until 2050.
In addition, the 486.6-million worker Indian labour force is the world’s second-largest, as of 2011.
Gross Domestic Product (GDP) composition by sector:
- Services: 64%
- Industry: 19%
- Agriculture: 17%
- Forex Reserves: US$ 318.64 billion for the week ended August 29, 2014
- Major export Partners: US, Germany, UAE, China, Japan, Thailand, Indonesia and European Union. India is also tapping newer markets in Africa and Latin America
- Currency (code): Indian rupee (INR)
- Exchange Rates: Indian rupees per US dollar – 1 USD = 60.43 INR (September 09, 2014)
- Fiscal Year: April 1- March 31
- Top Investing Countries (FDI equity inflows): Mauritius, Singapore, UK, Japan, USA, Netherlands, Cyprus, Germany, France, and Switzerland (April 2000 to June 2014)
- Sectors with highest FDI equity inflows: Services Sector, Construction Activities, Telecommunications, Computer Software & Hardware, Drugs and Pharmaceuticals, Automobile Industry, Chemicals (other than fertilizers), Power, Metallurgical Industries, Hotel & Tourism (April 2000 to June 2014)
- International Airports: Ahmedabad, Amritsar, Bengaluru, Chennai, Goa, Guwahati, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Thiruvananthapuram, Port Blair, Srinagar, Jaipur, Nagpur, Calicut, Tiruchirappalli, Coimbatore
- Railways: The Indian Railways network is spread over some 64,000 km, with 12,000 passenger and 7,000 freight trains covering more than 7,000 stations, plying 23 million travellers and 2.65 million tonnes of goods daily
- Roadways: India?s road network of 4.1 million km is the second largest in the world. With the number of vehicles growing at an average annual pace of 10.16%, Indian roads carry about 65% of freight and 80% of passenger traffic
- Waterways: 14, 500 km
- Major Ports of Entry: Chennai, Ennore, Haldia, Jawaharlal Nehru Port Trust (JNPT), Kolkata, Kandla, Kochi, Mormugao, Mumbai, New Mangalore, Paradip, Tuticorin and Vishakhapatnam.
PM-NM in his maiden Independence Day speech said, ” Come, make in India”. In clearer words, he implied the manufacturing sector to rise in India and thereby encouraging India’s ” Development”. It was an open invitation to all the countries to bring about their ideas and business setup and start making India, a manufacturing hub. At the face of it, it does look alluring and gives rise to the thought that may be all products labelled “Made in China” will be soon replaced by “Make in India”. But it would be a daunting task ahead, for the companies as well as Indian Government. to bring India to such a position.
It might seem to be a distant dream but India has the potential for having a manufacturing base for companies.
- Labour: A substantial population of India is unskilled, the maximum utilisation of such class could be made by providing them with necessary skills and training. It will not just lead to their upliftment, but also the companies. They would be attracted by the initially cheap labour( human labour) and tend to invest more in India.
- Capital: Indian economy is not doing as bad as it looks like. It does have the revenue ( that is Govt revenue) to have a share in the setup of foreign industries and companies. Indian Government could flourish from the profits as well
- Land: India, being such a geographically vast country and with varying climatic zones, could be the best place for making a variety of products. Hinterlands could be used( keeping in mind the environmental norms).
- India is an educational hub, many foreign students throng every year to grab a seat in the premiere institutes. Although the Research & Development is still to make a head, but definitely there is no lack of ideas and innovations that could give rise to the manufacturing structure.
Not to forget, India has been under British rule for the vast natural resources it has. It would definitely encourage, not just domestic, but also foreign industries provided the negatives or the lacunas are worked upon.
- The time-consuming compliance procedure of Indian government(Rep tap-ism). It takes somewhere around 140 days to complete one round of compliance, unlike other countries. Its a competitive world, and Indian government needs to have a quick forum in which the manufacturing units could get their compliance done in a decent amount of time.
- Indian Infrastructure facilities, be it the road, rail, air, water are not as lucrative for an investor to hop to India and start a base. They lack not just basic amenities, but also a standard requirement for starting proper manufacturing. In the initial stages of transition for development, infrastructure has to be mended to welcome business and other future prospects.
- Environment, with the rise of unprecedented natural calamities, Indian Government and civil societies have to pay heed to the environmental norms before starting a manufacturing unit.
- Sustainable use of natural resources.Even though India is having plenty of natural resources, there has to be sustainable use because “manufacturing” is not the sole area where development has to take place, specially at the cost of human civilization.
India’s development definitely lies in Manufacturing Sector due to various lucrative opportunities in the country. But at the same time, few infrastructural as well as steady changes in the procedural aspects need to be done to initiate the new sector.
Existing manufacturing units and areas should be brought under a list and classified so as to keep a check on their end use.
The potential of the country would definitely make India a manufacturing hub,this is being exemplified by Bengaluru emerging as a “Silicon Valley” which was also a distant dream. India is now one of the booming software markets and outsourcing is maximised to India.
Thus such gradual changes in the infrastructural requirements and also a facilitating procedural change would make the transition smooth and to a better “developed” India.