Make in India key note address delivered at SIES, Nerul Navi Mumbai
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Transcript of Make in India key note address delivered at SIES, Nerul Navi Mumbai
The Way Ahead for Excellence in
Manufacturing and Service Sector
Key Note Address at SIES on 14 Feb-2014
Why “Make in India”??? India had fallen to a lowly 134th rank out of 189
countries this year (three down from 2013) in the World Bank’s Ease of Doing Business rankings
Currently, it takes 12 procedures and 27 days to start business, 35 procedures and 168 days to get construction permits and 1420 days to enforce contracts in India.
Manufacturing value added as a share of GDP in 2013 is 12.89% which is lower than Pakistan (13.89%) and Bangladesh (17.55%)
India’s chronic infrastructure and logistics deficit with inefficient transport networks makes it tough for manufacturing companies to achieve just-in-time production
From furniture and gadgets to industrial equipment, India is importing almost all products from its neighbor, even yarn for saris
It is estimated that over 99 per cent of Bangalore silk saris are being made with Chinese silk yarn
And so on ……..
India vis-à-vis China
India exported goods of worth $15 billion to China and imported goods of worth $51 billion in 2013 from China
Confederation of Indian Industry estimates China enjoys cost benefit of about 10% over Indian manufacturing
Labor Market Efficiency out of 138 countries is 99 for India and 34 for China
Manufacturing contribution to GDP 12.9% for India and 31.8% for China
Share in global manufacturing exports 1.6% and 17.5% respectively
Share in global manufacturing employment 5.6% and 34% for China
Make in India – Right time to get in An index of manufacturing costs created by the Boston
Consulting Group (BCG) of the world’s 25 biggest exporters shows China’s traditional cost advantage is now under pressure
Just-in data from the International Monetary Fund show that China is no longer the largest trade surplus economy in the world
Here is an opportunity “Make in India” must tap in
U.S. Bureau of Labor Statistics publishes: Average labor compensation in India’s manufacturing
sector increased only, from $0.68 an hour in 1999 to $1.50 an hour in 2014
The average compensation in China’s manufacturing sector rose 20 percent year-on-year in the same period to $3 an hour
A nearly 500-million-strong labor force comprising unskilled workers and English-speaking scientists, researchers, and engineers
Make in India - – Right time to get in In 2013, only 15% of GDP which need to be enhanced to
25% by 2022 for creating more job opportunities
India rich in natural resources
Labor is aplenty and skilled labor is easily available given the high rates of unemployment among the educated class of the country
With Asia developing as the outsourcing hub of the world, India is soon becoming the preferred manufacturing destination of most investors across the globe
10% growth is targeted annually fro manufacturing sector
Make in India is all about harnessing this demand and boost the Indian economy
M A K E I N I N D I A - A m a j o r i n i t i a t i v e Making India a manufacturing hub and
economic transformation in India
Eliminating the unnecessary laws and regulations
Making bureaucratic processes easier and shorter and make government more transparent, responsive and accountable
Facilitating the time-bound project clearances through a single online portal and by the eight-members team to answer queries within 48 hours
Addressing key issues including labor laws, skill development and infrastructure
Create 100 million jobs by 2022
MAKE IN IND IA -Ob jec t i ves PM Narendra Modi launched make in India
announced on 15 August 2015 and on 25 September 2014
National program designed to transform India into Global Manufacturing Hub
Converting India to self-reliant country
Make in India programme includes major new initiatives designed to
Attract investment
Foster innovation
Enhance skills development and create job opportunities
Protect Intellectual Property
Strengthen manufacturing sector
Identified 25 key sectors to focus on
Make in India Framework
New processes New infrastructure Sectors New mindset IPR Protection
Creating conducive environment for manufacturing and services sectors to
enable Indian economy to be among the top ones
M A K E I N I N D I A - N e w p r o c e s s e s Licenses application licenses on line
Self-certifications
De-regulation for duals items used in defense or other industries
eBiz – a single window IT platform for services
Clearances on-line – Environmental, etc.
Returns through online unified forms
Checklists of required compliances
Electronic registers to replace hard-copy registers
Check on Inspector Raj - No inspections without approval of HOD
M A K E I N I N D I A - N e w i n f r a s t r u c t u r e Industrial corridors and smart cities
New Industrial clusters to promote advanced manufacturing
17 National Investment and Manufacturing Zones
Nurturing Innovation through Compliance with global standard
Online processes
Skill development through Augmentation of training infrastructure
Already more than 51,216 youths trained with annual capacity of 144,000 youths
4 branches for Footwear Design and Development
M A K E I N I N D I A - N e w S e c t o r s
1. Policy in Defense sector liberalized and FDI cap raised from 26% to 49%.
2. Portfolio investment in Defense sector permitted up to 24% under the automatic route.
3. 100% FDI allowed in Defense sector for modern and state of the art technology on case to case basis.
4. 100% FDI under automatic route permitted in construction, operation and maintenance in specified Rail Infrastructure projects such as:
a) Suburban corridor projects through PPP
b) High speed train projects
c) Dedicated freight lines
e) Rolling stock including train sets and locomotives/coaches manufacturing and maintenance facilities
f) Railway electrification
g) Signaling systems
h) Freight terminals
i) Passenger terminals
j) Infrastructure in industrial park pertaining to railway line/sidings including electrified railway lines and connectivity to main railway line
k) Mass Rapid Transport Systems
5. Easing of norms underway for FDI in the Construction Development sector
M A K E I N I N D I A - N e w M i n d s e t
Most importantly, the Make in India program represents an attitudinal shift in how India relates to investors:
Not as a permit-issuing authority, but as a true business partner
Dedicated teams that will guide and assist first-time investors
Focused targeting of companies across sectors
Make in India – Services Sector India has the second fastest growing services sector
in the world with a compound annual growth rate at 9 per cent, just below China's 10.9 per cent, during 2001 to 2012, the Economic Survey said
Access to banking services Expanding the penetration of banking infrastructure
into rural areas to make access easier and more affordable for account holders
Potential solutions include creating low-cost service models that offer incentives to multiple industry participants (such as telecom providers, banks, and payment providers), improving digital literacy, and e ..
Use of technology-enabled solutions such as massive open online courses (MOOCs) to enhance the reach and quality of vocational education is gaining ground
MAKE IN INDIA - What is in news? http://zeenews.india.com/ on January 17, 2015
"Japan will contribute to Prime Minister Narendra Modi's 'Make in India' initiative to support India in becoming a base of economic growth for the Indo-Pacific region and the world," Japanese Foreign Minister Fumio Kishida said in.reuters.com on Feb 5, 2015
Chinese telecom company Huawei Technologies Co Ltd has invested $170 million (Rs 1,037 crore at 1 dollar = 61 rupees) to open a research and development centre in India as it ties itself to Prime Minister Narendra Modi's 'Make in India' campaign, the company said on Thursday.
http://profit.ndtv.com/ on 25 Sep 2014
Reliance Industries Chairman Mukesh Ambani on Thursday described The launch of Prime Minister Narendra Modi's "Make in India" campaign as a "historic" day for Indian industry and said his company will create 1.25 lakh new jobs over the next 12-15 months as part of the movement.http://www.thehindu.com/ October 26, 2014
Havells, Godrej, Micromax and auto-components maker Bosch are amongst a handful of companies that have recently moved back to India some part of their manufacturing or outsourcing in China owing to currency, labour and other cost advantages.
http://www.moneycontrol.com/on 25 Jan 2015
Make in India campaign' touches right chord at somewhere in the minds of the global community and now it is up to us to convert the sentiments into ground reality by proper follow-up and suitable actions” – Mr. Shriprakash Shukla, Group Strategy Chief at M&M at World Economic forum (WEF)
MAKE IN INDIA - What is in news? http://www.dnaindia.com/ on 13 February 2015
IT hardware industry body MAIT has asked the government to consider giving duty relief and export sops to boost the domestic electronic manufacturing sector.
The industry body its members have already invested over $2 billion in ICT manufacturing facilities across India and are looking to attract more investments.
Urging the Prime Minister to consider the recommendations, MAIT said it will continue to actively engage and jointly work with the government towards making 'Make In India' a success.
http://timesofindia.indiatimes.com/ on 13 February 2015
A four-day industrial expo, 'NIMA Index-2015', which will be organised by Nashik Industries & Manufacturers' Association (NIMA) from April 24, will focus on new engineering technology for making Nashik a manufacturing hub in view of the 'Make in Maharashtra' drive launched by chief minister Devendra Fadanvis on the lines of 'Make in India'.
References
http://www.makeinindia.com
http://en.wikipedia.org/wiki/Make_in_India
http://www.thehindu.com/sunday-anchor/sunday-anchor-make-in-india-vs-make-in-china/article6533575.ece