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.

Dennis said:   1 decade ago
India had a lopsided growth compared to other countries. Normally a growth in agriculture is followed by a growth in manufacturing industry which is succeeded by the service industry. But in India we shifted from the agriculture development to the services sector which catapulted our growth to one of the mainstays of the world economy.

Because of the huge growth of services, the manufacturing industry was shadowed and contributes hardly 22pc to the GDP which is decreasing further. India currently spends only 1pc to RnD. Also inspite of having a strong patent system, the govt has not encouraged soft loans for inventors to develop and market their product. Another reason as already stated is the huge flux of engineers moving to the more glamorous I. T. Industry thus leading to a mis allocation of skills and lack of skilled people in the core engineering sectors, which offer lesser pay and where jobs require more effort and energy.

Having poor infrastructure has discouraged foreign manufacturers from investing in India. It has been calculated that we need $1 trillion to completely develop our entire infrastructure. Hence there's a lot of work to be done.

ALso some of the brightest minds from iits and nits prefer the huge pay packages in foreign countries which has affected our r&d sector.

All these factors have prevented India from being a strong player in the manufacturing industry.

MS Khan said:   1 decade ago
According to my view we are not as good in manufacturing as compared to BPO's/IT sectors because every one in today's fast world want to make money in quick succession. In IT's/BPO's you can operate from a room on a server and make quick money and get your company benefited. But in manufacturing field we have to struggle. Look for resources, raw material, permission from govt agencies which is a long process because corrupt politician and bureacrats delay the whole things, huge amount of money and patience. Since we are lacking in spirit and resources, opting for manfacturing carrier is not fruitful. Just take an example of TATA Nano factory at Singur West Bengal. Once the whole thing is set up and the company was about to delivered the cars in the market, the politics started its dirty game and forced TATA to shut the manfacturing plant. Here, the focus is not development but the focus is on vote bank because we technology will reach in villages the people will be more educated and advanced. They can think what is wrong and right. So our politicians think that the villagers should not experience a steep progress so that their mind is changed. Due to problem like acquisition of land, mining, lack of raw materials, lack of infrastructure, roads connectivity manfacturing plant in India is still a dream come ture.

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.

Akshay said:   1 decade ago
Civil engineers, Electronics engineers, Mechanical engineers, Telecomm engineers, and all other kinds of 'engineers' are turning towards IT to make the easy, quick buck. Why cant we stick to our own specializations, our vocations, our fortés and build our careers and this country? Sure, IT job offers come in great numbers, but it is YOU who choose to take them because "its the 'easy' way out"! I work in an IT company and as true as it may be, that infrastructure and basic setup require comparatively less amount of money, its utter rubbish that talent or skill is not a requirement! There's something called people skill that is required in addition to the technical know-how of one's job profile! Let's not deviate from the topic and condemn IT/BPO, instead of discussing how we may better the current scenario. We needn't forget how IT/BPO has blessed this country's huge unemployed populace with power to sustain their families, but all the same, we do need to work towards entrepreneur-friendly policies, less bureaucratic involvement in the setup process of manufacturing units, easier capital availability, etc.

Jajna said:   1 decade ago
* I don't think poor education system can be considered for this issue.

Because if somebody can join IT, Marketing, Finance passing out from the so-called poor education system then he can also join in core industrial field.

* The metal (lurgy) we have in India is more than sufficient for a good industrial establishment, but we give emphasis on exporting/outsourcing rather than investing in our own possibilities. Thats may be due to corrupt political system or poor self-centric mindset towards profit & growth.

* According to me Govt's action plays vital role in establishing a leading industrial development. A no of investors not only forward their hand but also ensure a better social, educational and overall development locally and hence in a bigger prospect. But politics, sometimes lack of thinking of even educated people makes it a bigger fail.

* Finally I am sure we can lead in manufacturing industry if Govt encourages the investors and more importantly supports them without playing with their patience (eg. Vedanta Alumina in Odisha not started from last 7 years because of politics and only pollutics).

Terri Lewis said:   10 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?

Abhishek said:   7 years ago
Hi, all.

The issue raised is a very important one. Let me describe the reasons in the following points.

1. The prime reason is the lack of infrastructure. INDIA still lags in basic infrastructure like robust ports; roads and rails. Further; they are poorly managed. For example, the cross-subsidization in railways has always enhanced freight costs. In all, there is infrastructure cost that a firm has to pay.

2. The second most important problem is the bureaucratic hurdle. There are too many laws governing manufacturing in India like apprentice act labour laws etc. These are time-consuming and have also become a source of corruption. All processes need to be streamlined if manufacturing is to take off.

3. Lack of properly trained and skilled employees is another issue. Most of the colleges in India are teaching outdated technologies. Out of 3000 engineering colleges, only 100 could afford to provide significant facilities.

4. Countries, where manufacturing has taken off, are the ones where govt strongly inventivizes entrepreneurship. Such a theme is lacking.

J v sandeep said:   1 decade 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.

Rishi said:   1 decade ago
Apart from Political will here few things that I want to mention.

Not even 4 % of the population is working IT and Service sector, So it is not the entire India is into IT and Service sector.

Go to rural place, people migrate to work as Day labors in Cities.

People are in fear of starting something new, or introducing new products, or designing new for upcoming working class.

People are always telling their kids (hypnosis) to study well to get good job.

So they think they were born for modern day slavery.

After school and college hardly 2 % study a book or read some important self help article. And those 2 % are those who work in IT or Service sector.

People who want to do something (such as business or inventing) are discouraged by saying you do not have money and so on.

If there is will there will be a way.

People should help other people in rural and smaller cities to start motivating entire India, we will be the youngest Nation (by population) by the year 2060, we can become a wealthier nation and overthrow US economy before 2030.

Jeeva said:   1 decade ago
Our indians has both man power and mind power but we are using only man power because we are not having required platform to develop our mind power.

India having 30 crors youngsters but US has 31crores 20 lacks people only. There are 28, 43, 391 Indians in US. Why they were moved to there? why couldn't develop a new IT Industry?

In India there is no resources like R&D (Research and development). So our graduates couldn't proved their innovations and develop industry in India.

See, japan is a small country only 127 million people over there but their IT and other industry growth is rapidly increasing because the main reason is they have R&D for every sector.

My perspective is, Comparing with other nation we have more man power and mind power, we can do anything. But some people are not willing to take risk while earning more money by IT but Some people has to take risk and try to be a entrepreneur, they are not having that much of money. So without the cooperation of the government it is not quite possible to start this industry.

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