ranjit | Feb 19, 2018 | 0
CONNECTING THE DOTS
By PTA News Bureau
If there is one phrase that is screaming from the headlines of newspapers or unendingly flashed across news channels, it is, indeed, Prime Minister Modi’s call “Make in India.” Be it ramparts of Red Fort or elite meetings with CEOs in Japan or US, “Make in India” has been the catchword that is reverberated internationally. Rest assured, this article doesn’t purport to be another thesis on the positives of Make in India concept, much of what you would have already gathered. Instead it tries to make a case how connecting certain dots could lead to emergence of the picture of lion – the mascot for “Make in India.”
Manufacturing in India has been at the cross roads for as long as one can look back. For 30 years, manufacturing’s contribution to GDP has remained stuck at around 15 per cent with India’s share in global manufacturing at just 2 per cent. (In contrast other Asian countries particularly China has taken bigger leaps where manufacturing constitutes 34 per cent of GDP and 13.7 per cent of world manufacturing.)
Services sector in India is unable to absorb the multitudes of youth entering the job market and a large burden of job creation therefore falls on the manufacturing sector.
As we delve deeper we understand that if manufacturing is to go up, Auto sector has to go up too. The co-relation between the two couldn’t be starker since automobile industry contributes 25 per cent of the manufacturing GDP in India. Revving up the automobile sector is therefore critical if manufacturing is to get its rightful place under the Sun.
Full Text in PTA Dec/Jan issue