Making 'Make in India' happen

[AVERAGE INDIAN]

For that, the Government needs to tackle issues impacting ease of doing business
The manufacturing sector has exhibited a tentative revival after three years of subdued growth, registering 3.5 per cent growth in the first quarter of the year. However, this revival cannot be taken for granted.

India is the only country with a young, growing and competitive workforce. A strong and deep manufacturing foundation with capabilities across traditional and advanced technology sectors is the springboard for the next growth cycle. Indian companies have proved to be globally attuned and energetic in leveraging comparative advantages. With the many free trade agreements that India has signed, the manufacturing sector has a good chance to slot into global supply chains.

India can easily reach annual manufacturing growth rates of 12-14 per cent over a sustained period of time under the right conditions. However, even a growth rate of just over 6 per cent would need an additional manufacturing investment of ₹98 lakh crore at current prices over the next five years. To attract such investment, the right policy structure is essential.

Right approach

Government and industry have already commenced concerted efforts to enhance the ease of doing business and kickstart manufacturing growth. The Government has also relaxed FDI limits in critical sectors like defence, construction and railways.

Estimates suggest that India could achieve an additional ₹8 lakh crore of GDP and 25 million more jobs through a facilitative business environment. There also needs to be a review of labour laws, many of which are outdated in the current context. The Goods and Services Tax will be a huge step forward in making India a single market. Land acquisition for industrial development must be speedy and cost effective while simultaneously leaving displaced populations better off. Of course, the action at the grassroots level of State governments and district administrations will be critical.

The operating environment for the micro, small and medium enterprises sector needs to be strengthened. Access to finance, redefining investment limits, encouraging technology adaptation and facilitative regulation could transform MSMEs into the hotspot of entrepreneurial activity.

Finally, firm level competitiveness must be encouraged by building a comprehensive support system with a wide knowledge base across parameters like quality management systems, lean manufacturing and environmental assessments and audits to meet the requirement of 'Zero defect, zero effect' as enunciated by the Prime Minister.

Confidence-building

Some 153 mega projects with an investment of around ₹5.2 lakh crore are being monitored by the Project Monitoring Group, which will create better infrastructure and ease cost pressures. India must also sync trade agreements with domestic manufacturing strengths and leverage global markets. In particular, exports must be stepped up in highly-traded sectors such as electronics and machinery.

Certain industry sectors of strategic significance could help set the stage for future growth in alignment with global trends. For example, a policy on capital goods and engineering, coupled with rationalisation of taxes and duties and correction of anomalies, will promote the competitiveness of Indian equipment manufacturers. The Information Communication Technology & Electronics (ICTE) sector is critical as currently over 60 per cent of the domestic demand is being met through imports.

The steel industry has huge potential. The sector would benefit from the introduction of compact designs for steel plants, creation of a larger pool of metallurgists, and promotion of R&D. Measures for the iron ore mining sector such as expanding the iron ore reserve base and modern mechanised mines would also need to be addressed. Emphasis on establishing textile mega parks, special incentives for value added textile and apparel manufacturing, and export promotion are necessary. The Prime Minister's call to 'Make in India' itself imparts confidence to the industry to undertake new investments.

The writer is director-general of CII

Making 'Make in India' happen | Business Line

 

[Kshatriya87]

India is on the path of becoming next global manufacturer after China. Fingers crossed.

 

[nrupatunga]

Make In India URL - MAKE IN INDIA
Twitter id: https://twitter.com/makeinindia_/with_replies
Facebook: https://www.facebook.com/makeinindiaofficial

Make in India Logo

https://twitter.com/makeinindia_/status/515027241072197633
[tweet]515027241072197633[/tweet]

 

[nrupatunga]

DEFENCE MANUFACTURING - MakeInIndia Homepage

 

[Dhairya Yadav]

the best decision was to put getting licence request over the net. Awesome idea. However, india must also concentrate on its ongoing power crisis. Even 0.1% irregularity in power supply is enough to repel a company considering to invest.

 

[AVERAGE INDIAN]

'Make in India' gets Rs 1,000-cr boost


In the first of a planned series of initiatives under Prime Minister Narendra Modi's vision of "Make in India", the Cabinet Committee on Economic Affairs on Monday cleared a Rs 931-crore scheme to raise competitiveness in the capital goods sector.

The aim of the project, to cost Rs 20,000 crore ultimately, is to boost manufacturing on a sustainable basis and through it, overall economic growth.

The scheme is to be implemented in the remaining period of the 12th five year Plan (2014-15 to 2016-17) and further in the 13th Plan period (2017-18 to 2021-22). The Centre will give Rs 581 crore of budgetary support and another Rs 350 crore would come from stakeholder industries.

The sub-sectors covered are mainly machine tools, textile machinery, construction and mining machinery, and process plant machinery. The aim is to upgrade technological depth and to create common industrial facility centres.

It will have five components. These are creation of advanced centres of excellence for research and development and for technology development; establishment of integrated industrial infrastructure facilities, termed Machine Tools Parks; a common engineering facility centre for textile machinery; a testing and certification centre, and creation of a technology acquisition fund.

"This is a pilot project. We plan to expand it across the country," heavy industries minister Anant Geete told reporters here at a press conference.

Gross fixed capital formation, a proxy for investment, was 31 per cent of gross domestic product till the first quarter of 2012-13. It had declined to 28.6 per cent in the first quarter of 2014-15.

Manufacturing also contracted this July, showing weakness in the sector. There is uncertainty over sustaining of economic growth, which rose to a two-year high of 5.7 per cent in the first quarter of this financial year.

'Make in India' gets Rs 1,000-cr boost | Business Standard News

 

[cobra commando]

Make in India Wanted in Security Gadgets Manufacturing:CISF DG

NEW DELHI: With various business leaders from the country and abroad pledging support to Prime Minister Narendra Modi's 'Make in India' campaign, the security gadgets and equipments sector too has decided to adopt it and develop India as a manufacturing hub in this domain. While speaking during the inaugural session of the 17 Indian International Security Expo here, CISF chief Arvind Ranjan said the 'Make in India' concept "has become very relevant in the security equipments making field too." Ranjan urged Indian manufacturers to develop and showcase gadgets and other security equipment which is required by various security forces rendering a special kind of duty from the sub-zero temperatures to the hot desert. "We need gadgets according to our needs and I am sure our private and public sector companies in this domain can do it," the CISF DG said. A number of experts and industry leaders present on the occasion seconded Ranjan and said that there was an "immense potential in Indian firms to achieve the real crux behind this motto" coined by Modi. The expo, being held at Pragati Maidan from September 25-28, will showcase a host of security related devices, vehicles and armour made by about 107 firms with almost 5,000 products on display.
Make in India Wanted in Security Gadgets Manufacturing:CISF DG - The New Indian Express

 

[cobra commando]

Saab offers # MakeinIndia plan for the Gripen
:ranger:
http://m.youtube.com/watch?v=-hwjBbfUm-M

 

[Dhairya Yadav]

Saab offers # MakeinIndia plan for the Gripen
:ranger:
http://m.youtube.com/watch?v=-hwjBbfUm-M

okay. Somebody needs to tell these guys that MMRCA competition is over. Im on mobile thus m unable to open vid. Can somebody tell how this offer is different ?

 

[mayankkrishna]

Why 'Make in India' is an anachronism

Prime Minister Modi's ambitious campaign to turn India into a global manufacturing hub plans aims to develop infrastructure and make it easier for companies to do business. The hope is to bump up manufacturing from 15 percent of gross domestic product (GDP) to 25 percent.

But the challenges were highlighted by a seemingly small gaffe: The program was launched with brochures distributed on a smart-looking USB flash drives that was made in China.

India imports two-thirds of its electronics, mostly from China. So does much of the world, including the US. The most American of products, from the world's most valuable company, Apple, is famously designed in California, made in China.

Both manufacturing and services now span enormous global networks, with pockets of strong expertise (like India, in services) supplying to the world.

And so, the enormous spend and resources for "Make in India" would give better returns elsewhere. Such as in our services industry. Or in building up a ecosystem for renewable-energy services and products, so that by 2020, India can dominate that sector.

Here're five reasons why:

Manufacturing (like services) is a globally-collaborative exercise today involving product design, software, hardware, and testing. The value lies in design, IP and software, and not in manufacturing. Apple manufactures almost all of its products outside the US, mostly in China. But its Taiwanese contract manufacturer Foxconn makes 3 percent margin while Apple, in California, makes 30 percent margin. Value is where IP, design and software are. Not where manufacturing happens.

"Make in India" needs enormous investments in the ecosystem for a gradual build-up. "Local manufacturing" objectives are often an afterthought in India. India's Aakash tablet -- "the world's cheapest" -- was once purely an education project that got delayed and derailed by the "make in India" objective.

The education objective got diluted as focus shifted to manufacturing. But the ecosystem didn't exist: No single contract manufacturer could supply even a fifth of the numbers required. While the private-brand equivalent Ubislate was made in China and was sold in large numbers in India, the United Progressive Alliance's (UPA) Aakash got delayed, and, with the change of government, its fate is uncertain.

Tech manufacturing is no longer dependent on abundant cheap labour as much as other factors, especially capital. For years, India tried to woo Intel and others to set up chipmaking. The most persistent wooing happened when Dayanadhi Maran was IT minister. But, instead of "India" the focus became Tamil Nadu. Now, chip fabs don't require cheap labour. They need enormous capital investment, subsidised electricity, clean water and silicon, and qualified engineers. India lost the Intel chip fab to Vietnam.

India is now offering a 25 percent subsidy on capital spend and other breaks, for chip fabs, and two fabs are in the works: One near Delhi by a consortium including IBM, and the other in Gujarat, involving STMicroelectronics.

Manufacturing for exports is high-risk, with traditional sectors also approaching a tip-over point in automation beyond which it makes more sense for the West to source locally. Textile manufacturing is returning in pockets from India to the US, because it's cheaper to make the fabric there in automated mills, there's better control, and even the overall cost of making full garments isn't that much higher.

The clothing company American Giant used to buy fabric from India: Now it says it's cheaper in the US, and the total cost of making a jacket is only about a fifth higher in the US than in India. As the NYT reported the company has switched from a supplier in Haryana to one in South Carolina, where they found the control, quality and timeline justifies the 20 percent higher spend. China has also been facing the displacement of labour in its factories.

There are way more jobs in services than in manufacturing. Wherever you build up competence, there's a global services opportunity. Whether in software for banking, or services for the space age-launching satellites and sending orbiters to the planets. And services generate enormous number of jobs. Even with increasing automation in services, newer jobs are created.

We are, however, slow to capitalize on global trends, especially when they go against the current grain of business, or when manufacturing may appear to face off with services. India is the world's BPO back office. But it continues to train hundreds of thousands of youngsters in BPO areas, while the trend is toward increasing automation of both voice (IVRS and voice recognition) and non-voice processes.

The opportunity of the future lies in using our knowledge to design systems and software that will disrupt our own BPO services industry. If we don't do it, someone else will -- an American or European tech company, probably using Indian developers. In this example, the Indian BPO industry will get disrupted anyway, and we won't get the technology upside.

Our few manufacturing success stories of recent decades, such as in automobiles, show the direction: Target local market first, invest in infrastructure, build up the ecosystem. It's a very long haul, and in a competitive global marketplace, it's a tough road. The money is better spent elsewhere.

(Prasanto K. Roy @prasanto is a technology analyst. The views expressed are personal)
https://in.finance.yahoo.com/news/why-india-anachronism-055404916.html

 

[cobra commando]

Tata Power Sed to Produce Honeywell's TALIN Navigation System in India

Honeywell Aerospace has signed a licensing agreement with Tata Power's Strategic Engineering Division (SED), enabling it to produce Honeywell's Tactical Advanced Land Inertial Navigator, or TALIN in India. This Honeywell-patented technology enables vehicles and artillery to navigate very precisely, even where GPS satellite guidance is not available, to increase troop safety and maximize mission success. Our strategic agreement with Honeywell supports Tata Power SED's commitment to the Make in India initiative a priority for India's new Government, said Rahul Chaudhry, CEO, Tata Power SED. We are proud to have completed this technology sharing arrangement, which will offer the Indian Armed Forces a state-of- the-art inertial navigation technology, made in India and with local product support. This agreement sets the standard for locally produced defense technologies to sustain India's military growth and mission success over the coming years. Aligning with the Indian Government's objective of organically growing its defense industry and the call for Make in India, Honeywell will license the design, hardware and expertise to assemble, test and, in the future, build the production kits for TALIN to Tata Power SED.
It will mark the first time India has produced inertial land navigation technology, providing the Indian Armed Forces with a locally constructed advanced land navigation technology that is not limited by a reliance upon GPS -- an important benefit for vehicles and artillery operating across the country's mountain, desert and forest terrain where satellite signals can be limited.


Read more:
Tata Power Sed to Produce Honeywell's TALIN Navigation System in India

 

[Syd]

Why 'Make in India' is an anachronism

Here're five reasons why:

Manufacturing (like services) is a globally-collaborative exercise today involving product design, software, hardware, and testing. The value lies in design, IP and software, and not in manufacturing. Apple manufactures almost all of its products outside the US, mostly in China. But its Taiwanese contract manufacturer Foxconn makes 3 percent margin while Apple, in California, makes 30 percent margin. Value is where IP, design and software are. Not where manufacturing happens.

"Make in India" needs enormous investments in the ecosystem for a gradual build-up. "Local manufacturing" objectives are often an afterthought in India. India's Aakash tablet -- "the world's cheapest" -- was once purely an education project that got delayed and derailed by the "make in India" objective.

The education objective got diluted as focus shifted to manufacturing. But the ecosystem didn't exist: No single contract manufacturer could supply even a fifth of the numbers required. While the private-brand equivalent Ubislate was made in China and was sold in large numbers in India, the United Progressive Alliance's (UPA) Aakash got delayed, and, with the change of government, its fate is uncertain.

Tech manufacturing is no longer dependent on abundant cheap labour as much as other factors, especially capital. For years, India tried to woo Intel and others to set up chipmaking. The most persistent wooing happened when Dayanadhi Maran was IT minister. But, instead of "India" the focus became Tamil Nadu. Now, chip fabs don't require cheap labour. They need enormous capital investment, subsidised electricity, clean water and silicon, and qualified engineers. India lost the Intel chip fab to Vietnam.

India is now offering a 25 percent subsidy on capital spend and other breaks, for chip fabs, and two fabs are in the works: One near Delhi by a consortium including IBM, and the other in Gujarat, involving STMicroelectronics.

Manufacturing for exports is high-risk, with traditional sectors also approaching a tip-over point in automation beyond which it makes more sense for the West to source locally. Textile manufacturing is returning in pockets from India to the US, because it's cheaper to make the fabric there in automated mills, there's better control, and even the overall cost of making full garments isn't that much higher.

The clothing company American Giant used to buy fabric from India: Now it says it's cheaper in the US, and the total cost of making a jacket is only about a fifth higher in the US than in India. As the NYT reported the company has switched from a supplier in Haryana to one in South Carolina, where they found the control, quality and timeline justifies the 20 percent higher spend. China has also been facing the displacement of labour in its factories.

There are way more jobs in services than in manufacturing. Wherever you build up competence, there's a global services opportunity. Whether in software for banking, or services for the space age-launching satellites and sending orbiters to the planets. And services generate enormous number of jobs. Even with increasing automation in services, newer jobs are created.


Our few manufacturing success stories of recent decades, such as in automobiles, show the direction: Target local market first, invest in infrastructure, build up the ecosystem. It's a very long haul, and in a competitive global marketplace, it's a tough road. The money is better spent elsewhere.

(Prasanto K. Roy @prasanto is a technology analyst. The views expressed are personal)
https://in.finance.yahoo.com/news/why-india-anachronism-055404916.html

This article is incorrect on so many levels. In my opinion as an engineer, with 45 years in the electronics and communications industry, India must go down the manufacturing route in order to master the art of good design. Good designers have to learn how to optimise their products for long life and efficient production so the two go together.

Service industries have a "shallow moat" ie. it is easy for competitors to enter the market. Already, I have noticed that some companies are opening call centres in the Philippines where there is a pool of English speaking folk whose accent is more easily understood to English and American ears. As the more advanced African countries climb the education ladder, they will also begin to compete in the service market.

India must also improve its infrastructure hugely to compete in manufacturing; 24 hr electricity supply with 99.9% availability, better roads and efficient trains are a must.

The point the author makes about the textile manufacturing moving back to Carolina, need not happen if Indian factories invest in the high tech machinery that they use in Carolina. After all if Mr. Ambani can spend $1 billion on a "house" he could easily spend half that on an automated mill.

The semiconductor industry, that I am more familiar with, does require huge investment in wafer fab, but also employs thousands (usually young female) in assembly and packaging of ICs. That is how Taiwan, Malaysia and even Vietnam got into the game and this analyst is foolish if he thinks India can miss it out.

What the Indian Government needs to realise is that there is always someone hungrier than you for the work. Fortunately I believe that Mr. Modi is someone that understands this. He needs to convince the Indian Establishment that local manufacturing is in the national interest especially those in the Army and Air Force. Look at what INSRO have managed to achieve. That should be India's inspiration

 

[AVERAGE INDIAN]

Make in India : Honeywell, Tata Partner To Produce TALIN Systems


NEW DELHI — Coinciding with the visit by Indian Prime Minister Narendra Modi to the US Sept. 25-30, Honeywell International has inked a partnership agreement with India's Tata Power to license-produce the tactical advanced land inertial navigator (TALIN) system.
NEW DELHI — Coinciding with the visit by Indian Prime Minister Narendra Modi to the US Sept. 25-30, Honeywell International has inked a partnership agreement with India's Tata Power to license-produce the tactical advanced land inertial navigator (TALIN) system.

"TALIN represents the latest in global positioning system (GPS)-free navigation and positioning technology, designed to improve asset safety and ultimately mission success," said Arijit Ghosh, Honeywell president for aerospace in India, according to a statement released Sunday.

An executive of Tata Power said TALIN would be sold to the Indian Army for use in artillery systems and also sourced to the Honeywell supply chain worldwide.

TALIN systems are ideal for environments where GPS signals are not available, the Tata executive said, so they would find a ready market with the Indian Army.

Tata Power will license the design and hardware to assemble, test and build the production kits for the navigation system in India.

The Indian government wants to boost the domestic defense industry and the Tata-Honeywell partnership will help Indian industry get advanced technology, the Tata Power executive said.

Ghosh said, "By partnering with Tata Power SED on the production of TALIN we are aligning with the government's aim of increasing locally manufactured technologies for India's defense industry and giving the Indian armed forces an easy-to-justify option for navigation on the 21st century battlefield."

Tata, Honeywell Sign Pact as India's Modi Visits U.S. - WSJ

 

[no smoking]

This article is incorrect on so many levels. In my opinion as an engineer, with 45 years in the electronics and communications industry, India must go down the manufacturing route in order to master the art of good design. Good designers have to learn how to optimise their products for long life and efficient production so the two go together.

Service industries have a "shallow moat" ie. it is easy for competitors to enter the market. Already, I have noticed that some companies are opening call centres in the Philippines where there is a pool of English speaking folk whose accent is more easily understood to English and American ears. As the more advanced African countries climb the education ladder, they will also begin to compete in the service market.

India must also improve its infrastructure hugely to compete in manufacturing; 24 hr electricity supply with 99.9% availability, better roads and efficient trains are a must.

The point the author makes about the textile manufacturing moving back to Carolina, need not happen if Indian factories invest in the high tech machinery that they use in Carolina. After all if Mr. Ambani can spend $1 billion on a "house" he could easily spend half that on an automated mill.

The semiconductor industry, that I am more familiar with, does require huge investment in wafer fab, but also employs thousands (usually young female) in assembly and packaging of ICs. That is how Taiwan, Malaysia and even Vietnam got into the game and this analyst is foolish if he thinks India can miss it out.

What the Indian Government needs to realise is that there is always someone hungrier than you for the work. Fortunately I believe that Mr. Modi is someone that understands this. He needs to convince the Indian Establishment that local manufacturing is in the national interest especially those in the Army and Air Force. Look at what INSRO have managed to achieve. That should be India's inspiration

First time to hear an Indian saying these. Very impressive.

 

[cobra commando]

Prez Invites Oman to 'Make in India', Seeks Deeper Trade Ties

 

[AVERAGE INDIAN]

'Make in India' meets Russia's 'Eastern pivot'


Russian deputy PM set to discuss more nuclear, energy cooperation

The government's "Make in India" programme and Russia's "Eastern pivot" will meet as Russian Deputy Prime Minister Rogozin will discuss more cooperation on energy, the co-production of fighter aircraft and nuclear cooperation with Prime Minister Narendra Modi, External Affairs Minister Sushma Swaraj and National Security Adviser Ajit Doval.

During the day-long visit on Wednesday, Mr. Rogozin will chair the 20th commission (IRIGC-TEC) along with Ms. Swaraj, as well as draw up the plan for "deliverables" for President Vladimir Putin's visit to Delhi, expected in December for the annual India-Russia summit. Russian Foreign Minister Sergey Lavrov is expected at the end of November as well. "Each of these fields, from defence production to nuclear and space programmes, are fields India is looking to Russia for closer cooperation, and so Mr. Rogozin's visit is important," an official source told The Hindu.

'Make in India' meets Russia's 'Eastern pivot' - The Hindu

 

[cobra commando]

Govt plans big boost for local manufacturing - Livemint

 

[cobra commando]

Make-in-India: Govt plans to develop 5th-generation fighter aircraft - The Economic Times

 

[cobra commando]

Turkey keen to take part in Prime Minister Narendra Modi's Make-in-India project

NEW DELHI: Turkey is keen to participate in Prime Minister Narendra Modi's Make-in-India project and would look for the NDA government conducting some roadshows there to increase awareness about SmartCity project, a top Turkish diplomat said here today. Turkey also favours enhancing air connectivity between the two countries and was open to contributing to the growth of the India's aviation sector, its Ambassdor Burak Akcapar said here at a business event. "We want to be a part of Make-In- India... we want to be a part of India's civil aviation sector's growth," Akcapar said while addressing PHD-GMR Aviation Summit 2015 here. Akacapar said that Turkey was ready to offer expertise his country has in both the manufacturing and aviation sectors adding, whatever Turkey is producing, it can so do here with its Indian counterparts as well. "We can become a part of it (growth) by contributing, of course, in Make In India (project)," he said. Pitching for enhancing air connectivity between the two countries, the Turkish diplomat said that there should be more direct flights by the airlines. "We are open to contributing to hubs and want to increase destinations here. We can fly to those destinations where other (airlines) don't fly. "There should be more direct flights between India and Turkey. We want to increase destinations in India; Our offer is very much on the table," he said. He also said that Turkey, being one of the leading global players in the construction segment, was also interested in developing some smart cities in India.
Turkey keen to take part in Prime Minister Narendra Modi's Make-in-India project - The Economic Times