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The long-term dream

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DQI Bureau
New Update

“Our country has to work toward identifying sectors in which we have great potential and can excel in–that’s how we can build world-class firms”

Deepak Puri

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The trailblazers of the manufacturing trail, China, Singapore and Taiwan have

captured over $100 billion in exports. India lags far behind, and will continue

to lose out, unless the government makes some quick course corrections. As India

sets international benchmarks in the industry, our country has to recognize the

primary principle that drives markets worldwide– "what helps people,

helps business".

It is a misconception that specialised manufacturing is not successful in

India. Take the example of Moser Baer–in its 20th year of operations, the

company has made its mark in as complex a market as optical media. It has

emerged as one of the largest optical and magnetic media production companies in

the world. MBI today is globally competitive in high technology manufacturing as

we have effectively leveraged our large knowledge pool and developed our own

processes. Availability of low-cost and skilled manpower, coupled with low costs

of setting up infrastructure and exemplary project implementation skills are the

key reasons for MBIs success in manufacturing.

India has the potential to emerge as a leader in the manufacturing industry.

Some of the factors that will support India are as follows. India boasts of a

very strong intellectual expertise with committees like CII, FICCI, and MAIT

working closely with the manufacturing sector. This has provided a very

close-knit association with constant interchange of ideas and recommendations

between the manufacturers, the industry bodies and the government of India.

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India has excellent manpower utilization skills, primarily attributed to

availability of highly skilled and cost effective manpower/workforce. In the

last decade, the opening up of the economy has meant increased competition, and

the manufacturing sector has been undergoing a process of deeper structural

changes to adapt to the changing scenario. This can also be seen from the fact

that, despite the industrial slowdown, the manufacturing sector performed well

which is reflected in the sector rising share of exports.

However, the above mentioned factors only cater to preparing for a long

journey that is yet to be made. The most basic requirement to transform India’s

manufacturing industry dream into reality is to gain government acceptance. Our

country must identify the industries in which we have tremendous potential and

can excel in order to build truly world-class companies. The next requirement

would involve the creation of a more conducive environment to attract more

amounts of foreign direct investments into India, thus entailing the creation of

infrastructure, and rationalization of duties. The government will also have to

commit seriously to certain investments such as setting up of EPZs (export

promotion zones) or SEZs (software export zones). The governments at the centre

and the states as well as political parties have to ensure that the consensus on

reforms translates into implementation. At the same time, industry –and the

manufacturing sector in particular– have to intensify efforts towards building

up internal competitiveness by adopting global best practices in quality,

productivity, corporate governance, etc.

The task of building our industry, brick by brick, is one that is challenging

and arduous. The need of the hour therefore is for the entire country, to come

together in order to establish India as a quality conscious, globally

competitive and high potential destination.

By Deepak Puri



The author is managing director of Moser Baer India

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