Ashish Kumar Joshi, PGDM, IIM Calcutta
'India can call itself the next global factory in future'
India has followed a peculiar growth story over the years. While China focused on cheap, high volume commodity production, India has seen high growth in the services sector. The new government has begun its term hitting the right notes with the Prime Minister personally putting his weight behind the "Make in India" campaign.
Right from creating a single window facility for addressing investor concerns, identifying key manufacturing sectors, to creating a common platform to unite state governments, bureaucracy and corporate leaders; the government seems serious in its intent to elevate India's "ease of doing business" rank internationally. Overhauling complex compliance procedures and reforming archaic labour laws will put an end to institutionalised corruption and encourage entrepreneurship. Easing the FDI norms in construction, rail infrastructure and defence should only be the beginning of a series of positive signals.
India is blessed with a large labour pool and admirable levels of judicial transparency. It can leverage its territorial position to play a critical role in the global supply chains. Doubling up as a potential high consumption market can keep demand fluctuations in check as well as save up on the logistics costs. And if it can internally strengthen on three fronts: cost (cheaper labour), quality (high skilled workforce), and supply chain (robust infrastructure), India can call itself the next global factory in future.