India: "Factory to the West" OR "Germany of the East"

[Markus]

India should move away from being the ‘Factory to the West’ and aspire to be a top quality and high technology manufacturing destination if it has to achieve lofty job and growth targets, corporates honchos said.

“For India to revive its manufacturing in a way that it can not only create jobs, but be the fulcrum of India’s next growth – its manufacturing has to become ‘Germany to the East,’” said the Manufacturing Leadership Survey 2012 by Boston Consulting Group (BCG) and Confederation of Indian Industry, echoing the views of about 70 senior management professionals across companies it sought.

The report said manufacturing excellence should be the country’s way to realise the targets set out in the government’s National Manufacturing Policy, which aims at a share of manufacturing of 25% in the gross domestic product (GDP) by 2022, about 12-14% medium-term growth in the sector and creation of 100 million jobs by 2022. Currently, manufacturing accounts 15% share of the sector in the GDP against 34% in China and 40% in Thailand.

The survey said India will have to focus on bolstering quality and extensively invest research and development and innovation.

Corporates too feel that most Indian sectors are lagging in R&D and innovation.

At a recent CII conference on manufacturing, Pawan Goenka, president – automotive and farm equipment sectors for M&M, said products such as XUV 500, Duster, Ertiga and Dost are successful examples of innovations.

“The entire manufacturing sector needs to aspire for that,” he said.

The CII-BCG report said India spends less than 1% of its GDP on R&D while it is 3.47% in Japan, 3.4% in South Korea, 2.81% for the US, and 1.55% for China.

Corporates claim it is the focus on newer sectors and skill development, which will play a pivotal role. “India is the largest importer of defence equipment. And that is one sector where India should focus to develop domestic abilities,” said K Venkatramanan, CEO and MD of Larsen & Toubro at a recent conference.

It’s time to move over from being Factory to the West - Money - DNA

 

[Abhishek_]

lol we aren't even the factory yet. how can one jump a whole developmental cycle.
you cant run before learning to walk. same old big talks with little to show

 

[Developereo]

Reputations are built over decades, and India is a newcomer to the global manufacturing scene.

Let's look at something India has been known for over the last two decades: BPO and IT. What does "Brand India" mean today in those sectors? innovation? quality? reliability?

Nope.

Even after two decades, "Brand India" still means what it did 20 years ago: cheap price.

 

[Abhishek_]

^very well put sir

 

[Markus]

Reputations are built over decades, and India is a newcomer to the global manufacturing scene.

True.

Let's look at something India has been known for over the last two decades: BPO and IT. What does "Brand India" mean today in those sectors? innovation? quality? reliability?

Nope.

Even after two decades, "Brand India" still means what it did 20 years ago: cheap price.

Well, thats an advantage to have.

China has become the manufacturing hub thanks to its cheap labour. Infact, the challenge for India is how to become even more cheaper than China and yet deliver on the quality satisfactorily.

 

[jandk]

Reputations are built over decades, and India is a newcomer to the global manufacturing scene.

Let's look at something India has been known for over the last two decades: BPO and IT. What does "Brand India" mean today in those sectors? innovation? quality? reliability?

Nope.

Even after two decades, "Brand India" still means what it did 20 years ago: cheap price.

you are right. inshallah, we will make a good name for ourselves. i believe in " aim for the stars, atleast you will reach a tree top".

 

[KRAIT]

Reputations are built over decades, and India is a newcomer to the global manufacturing scene.
Let's look at something India has been known for over the last two decades: BPO and IT. What does "Brand India" mean today in those sectors? innovation? quality? reliability?
Nope.
Even after two decades, "Brand India" still means what it did 20 years ago: cheap price.

I posted a video for you explaining where India innovates. India don't have Apple or Google, but many research divisions of these companies in India are actually doing pretty well. The reason people don't know Indian innovation is because when a product is developed by IBM and sold, the end user don't know the input of Indian researchers. I am posting this video again and kindly watch it as it explains that Global corporate world thinks in different way about India than the normal people like you and me.

Point is India needs to develop its own companies which can employ these people who are working for other companies.

 

[kam83]

Reputations are built over decades, and India is a newcomer to the global manufacturing scene.

Let's look at something India has been known for over the last two decades: BPO and IT. What does "Brand India" mean today in those sectors? innovation? quality? reliability?

Nope.

Even after two decades, "Brand India" still means what it did 20 years ago: cheap price.

i agree with you partially but India is already placed well with hundreds of global R&D center & it moving up in global innovation

 

[KRAIT]

^ Dude I already posted it.

 

[karan21]

Today's India can't innovate anything. We have to accept this fact. 1.3 billion people who can't even produce their own assault riffle while countries like SK, Isreal, Taiwan can. Bureaucracy is another factor which is killing innovation in India.

All countries have to undergo a massive industrilization cycle to become from backward to innovator. We have not had our industrial cycle yet. We need to become a manufacturing powerhouse. Innovation is the next logical step.

The national manufacturing has the potential to make India the biggest manufacturing hub within 2 decades if implemented properly and I see that happening. Today's India doesn't need to worry about innovation. But instead we need to worry about 100% literacy, power production, infrastructure, universities, roads, industries, metros and using our labour for manufacturing.

Once Industrialized India is the next logical Innovator of the world. 1.5 billion minds at work can't fail. It is still a 40 yrs into the future dream but we have to see that India today and keep working for it.

 

[Developereo]

Point is India needs to develop its own companies which can employ these people who are working for other companies.

That's my point.

No one denies that there are brilliant Indian individuals who can innovate, but something in Indian corporate culture stifles innovation. That needs to change.