Tarang Jain, Managing Director, Varroc Group
The main objective of Make in India is to increase the GDP of the country as a whole and there is a lot of provisions for tax revenues, the government could gain out of these initiatives. Although the campaign has set off the ground one and half years now, the fruitions are very few to finger out. India is known for its low value manufacturing and synonymous with low cost and quality too many a time. But now the country is slowly progressing to be competent globally and auto industry going forward will also be valued high matching the consumer preferences.
Tarang Jain, Managing Director, Varroc Group
The march forward of the country should be supported with good infrastructure but the avenues for the same are still blurring. Unless world class infrastructure is provided, the country is very far from reaching its accomplishments. For an instance if the country wants to increase the GDP in manufacturing from 16% to 25% by 2022, good infrastructure is needed. In spite of commodity and oil prices marking its lower index, the country still does not show any positivity.
According to media disclosure there are projects worth Rs 10 lakh crore are stalled and it is a negative sign for the country which aims to stride parallel with its global counterparts. Single window clearance though spelt out in a big way, there are projects which worth high value get cleared through this with the central government intervention but small and medium scale industries are not getting their applications processed in a faster pace. Steps have to be taken for single window clearance, online application processing and clearance pertaining to small and medium scale industries as they contribute much for the GDP rise. GST should also be included in
the lot.
India is a country where unlike China export markets could easily be sidelined as the domestic market itself is huge to be served. But that does not mean that export market could be completely overlooked. If the government puts their hands in capital expenditure for infrastructure development the 70% contribution for the same will be taken care by the companies who invest in India with 30% investment from the government to improvise the same. The other important step is to refine the labour reforms. The contractual labor terminology is well defined in the Indian market. Hence there is a lack of morale and in-turn the quality of the output gets affected. Hiring pattern has to be modified and the down time should be compensated with the basic pay. This is the only market I could see contract labors oozing out like
a bee.
Except for FDI increase no accomplishments hitherto made since the dawn of Make in India. The media report says there are provisions for investment of Rs 110,000 crore in electronic industries but absolutely not even a buzz later in the move. Land acquisitions are challenging and power cost is high compared to China and to be figured out the cost incurred for power in China is one fourth of India. Politics has to be put under control.
Two-wheeler market is very important for India and rural areas contribute more in two-wheeler market alongside four-wheeler market in the urban areas. But a healthy political intervention in all these areas fillips the ultimate goal. The logistics and manpower expenditure also become high which were low thus far and edges India amongst fellow players in the market. The export market is highly lucrative for India with rupee depreciation and certainly an oasis for manufacturing and defense industry.
— as told to Bhargav TS
