Why can't India be a World-Class Player in Manufacturing Industry as it is in IT & BPO Sectors?

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103 comments Page 2 of 11.

Ananth said:   9 years ago
There are lot of issues with the manufacturing sector and if we overcome these issues, definitely we can grow in this field. The issues are.

1. Lack of funding in manufacturing industries and lack of support from government.

2. We are importing lot of materials from other countries rather than exporting which is a major problem and there comes a day where we need to import our lord Ganesha idol from other countries as this is the statement which is said by the head of kotak mahindra group which is so true.

3. Our education system lacks practical knowledge and we are more concerned with the percentage rather than knowledge and our education system should provide good industrial exposures to students and industrial training and internships to be included in the curriculum.

4. If an Engineer has to do higher education, he need to clear GATE which is a tougher exam comparatively in-order to go to quality institutions where the seats and the opportunities are less, whereas I have seen so many friends where they would be more willing to do GRE courses and do higher education in abroad where they get many more opportunities. So we need to set-up good quality institutions in India so that the percentage of students going to abroad would come down.

5. If you end up working in a small or medium scale industry then you would know the difficulties you have to face being a mechanical engineer as you have to work for low wages and your work will be more as their would be less departments in a small scale industries. So, fresh graduates get attracted to work in MNC companies (mainly IT sector) due to their benefits compared to our manufacturing sector.

These are the issues but this can be overcome by giving more encouragement to small scale and medium scale industries by reducing taxes and by giving good equal opportunities to Engineers of their corresponding fields.

Varma said:   10 years ago
Problems in manufacturing sector.

1. Lack of infrastructure - like power, transport, other things.

2. Lack of incentives to small scale industries - to upgrade. If most case if a small scale industry upgraded to medium one, then probably it will lose all their benefits from the government. That discourage the small scale industries to upgrade.

3. Lack of skilled manpower.

4. Lack of investment in RD.

5. Obsolete machines and technology - lessen the competitive.

6. Not a strong government policies, so disparities among states - the developed state grab the opportunities.

7. Reserving most of the production to small scale industries.

8. Very strict labor laws - you can't dismiss an unfit employee once they become permanent employee.


- Creating good infrastructure.
- Strong government policies.
- Investment in RD.
- Supporting medium scale industries.
- Providing tax incentives other sops.

Shivam said:   7 years ago
The main hurdles which India faces to emerge as a giant in manufacturing hubs are :

1. Lack of skilled manpower in-spite of being the 2nd most populated country in the world. There is an urgent need to update the work process as well as working environment, in order to survive in this era of globalization. This does not imply to remove the existing employees, but rather it suggests to upgrade their skills by imparting them with proper training.

2. India has abundant raw materials, but it does not have the appropriate industries to process them and make them ready to use. It is because of same reason that we need to export a lot of items from China. What could be the reason behind it ? Well, its simple and evident -"lack of government initiative". If government could take an active role in this, then surely India can be a manufacturing giant. Every year, a part of budget, approx. (12-15%) is spent in manufacturing sectors but still there is no sign of any positive outcomes. This is just due to the lethargic attitude of the politicians. Unless and until, there is a check on such people, India can't emerge as the hub of manufacturing market.

3. Lack of research and development works. The youth should be enlightened of the glory that R&D can bring to India. India is a pool of talents, but due to lack of R&D, these people get lost in the herd of men.

4. The existing labor laws are somewhere creating hurdles and obstacles. It needs to be revised and upgraded.

5. Lack of advanced education system. Still lots of colleges in India don't impart good education system. Students are driven to easy and short cuts methods. Engineers are being produced every year on large scale, but still we don't hear of any good research works which our youth did in past 10-20 years. It appears that they have opted to work in IT sectors, where scope of R&D is less, or even if it is there, its just what the company would want you to do. Due to lack of interest in youth, the dream of being a manufacturing hub is still in dilemma.

Terri Lewis said:   9 years ago
I have been living in India for 1 1/2 yrs, and have asked this question from early on. Having lived in several countries I am curious why India is not stronger in the private sector/industry. I think all the reasons have been listed above.

You certainly have the human population to do so, but outside companies are hampered heavily to bring industry here. This leaves out technology sharing and many other things. These companies who do try to make a go of it here find lots if corruption which hampers future growth immensely.

Lack of infrastructure hampers everyone one too; even simple thing like mail/post keeps industry from growing. Basics: infrastructure, pollution (garbage every where, rivers and lakes filthy) , accountably from government and all, corruption, lack of proper training and the will to change, not opening up the sector to free trade and outside world (always linked to Indian company which name comes first. Why. Tata/Sky, Maruti/Suzuki, come on.) I am not convinced that India wants to change; starts with each of us.

The world wants a better India. Does India?

Tarundeep Singh said:   6 years ago
There is no denying the fact that India is the hub of outsourcing companies. The tremendous growth opportunities, cheap labour and friendly Government policies have made easy for foreign companies to:

India is a developing country & the manufacturing industry has seen a similar boost in the recent years with the likes of famous industrial giants like TATA, Ambani Brothers and much more who have proved their mettle in the manufacturing industry.

Moreover, the scenario is changing nowadays. For example, Chennai is the base to around 30% of India's automobile industry and 40% of its auto components industry. A large number of automotive companies including Hyundai, Renault, Nissan Motors, Ashok Leyland, Daimler AG, Caterpillar Inc. Komatsu Limited, Ford, BMW and Mitsubishi have manufacturing plants in Chennai.
Wages and machines that are used to manufacture goods will depreciate, but human assets have their value. Thus it is the best time for India to invest in manufacturing industry due to many advantages:

* Economic conditions are improving.
* Brain drain has reduced.
* Many improvisations and innovations in technology.

Further, Most of the developed countries have derived their major share of GDP from secondary (manufacturing) & tertiary (service) sectors. Thus it becomes very vital for a country like India to give a boost to its industrial sector to recover from the sagging economic depression.

Sudheer said:   1 decade ago
The secondary sector (manufacturing industry) in India is slow in race compared to primary and tertiary sectors.

The reasons are the same which are mentioned by the other members.

But why can't India learn from china which is presently the largest manufacturer in the world.

Going back to the 1975 and 1980's the industrial sector in both the counties are more over the same. But from 80's the china showed a rapid growth in the industrial sector surpassing the world majors like USA and Japan.

If a country like china which shares a lot common problems could make it, then India should at least try to achieve at least half of the its industrial growth.

And surely the government should provide a helping hand.

Shashank said:   1 decade ago
I don't want to point these sector but I think these sectors which we are telling i.e.BPO and IT basically are not in search of talent (in India) , they basically need manpower and they train them to work as they want. These sectors are growing so much because it doesnt require much investment in production and manufacture. Only paying a small amount to the employee gets them money. We have got more manpower and people easily get attracted toward these BPO's because they don't require much education and youngsters can easily earn their living. Considering IT sector, now a days we see that a person doing mechanical engineering gets an IT job. They train them one month and then they are ready to run in the race course. This is what happening now a days.

Students immediately after graduation gets a job in these sector easily and hence they get attracted more towards them. And hence it is but natural that these sectors will definetly grow.

Government should play a part in this. We have got organisations like AICTE and UGC in education which gives accredation to almost all the colleges approaching their door step.

Before giving accredation they must consider various points like.

1. Adequate and good faculties are present for each course which the institute is giving.

2. Students getting equal opportunities to get the job in their specialised field.

And many more.

These things can open the opportunity for the young generation like us to take the field in which we are interested.

If we are saying that we have not got talent this is totally wrong. The thing is we are not using our talent properly. Or we can say we are misusing it.

It is not that we are not more attracted towards the manufacturing industries but the fact is youngsters are not given much opportunity in these fields. So they try to move abroad and get settle there. This thinking must be changed and if Government is not providing the opportunity we must take a step forward make our own way. Their are lot of manufacturing indusries in our country. We must make our standard so high that we get into that.

Akashhp said:   1 decade ago
India have a service economy. People believe in having a good job and finally live a satisfied life and die. But they are not ready to accept the challenges and look into manufacturing arena. We really lack people having the entrepreneurial qualities and those who have it rarely make a good use of it. To become a global manufacturer people should dare to take calculated risks and should set up a business ventures rather than looking for a job. We should believe in Inventing a job rather than discovering any. Extensive research and making good use of the man-power can give us a very good result. We should sharpen the skills of the students in the professional courses and should have a practical approach and give up conventional method of working.

Pradeep said:   1 decade ago
Well, summarizing the above points: says that problem is with INDIA and its system.

But have we ever fought for the right, do we have unity, Do we have patience to wait for the best and go ahead and lead the system.

No youth in this generation is ready to take risk in India. Same time no youth has patience to fight against corruption for long time till it ends.

Apart from this, From the birth of a child, 80% parents needs their child to become software engineer and move to abroad. 60% students who score high and have got high talents move to abroad within a short period and will not turn back to India, 20% average students come up with mechanical engineer degree. And few in this who have high scores move to software later after degree due to low payments in manufacturing industry. The rest 20% who get the least scored and have no tensions in their mind and wants their life to be smooth. These people ambition would be to get a small home, get married, get a small car. Lead a simple life.

Finally Almost all Indian are in race to earn money rather development.

Or worst way to say Indians have become selfish and least worried about development with low salaries.

So manufacturing industries in India needs to pay high to remain and grow in India.

J v sandeep said:   10 years ago
Hello good evening my dear friends,

From the topic stated above I would like to express my opinion over this issue.

I think that we do not lead in manufacturing industry when compared to that of it sectors because, R&D sectors need more investment when compared to that ti it sectors and India is lacking in providing the investment to industrial sector through which they lack in required equipments which need to be facilitated to improve our manufacturing industries. So, I think even India has sufficient amount of manpower it was quite lagging in the required investment which is needed to improve our manufacturing sector.

And it also needs to encourage the people to occupy manufacturing sector instead it sector. Because many people show interest on it sector when compared to industrial sector as to earn money within no time.

So, I finally conclude that investment in the manufacturing sector must be increased and the manpower must be completely utilized which gradually increases industrial sector and makes India reach its colorful dreams.

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