A New Frontier for
Global Competitiveness India is at a pivotal moment in its economic journey. In
recent decades, it has become the preferred destination for back-end services,
emerging as a global leader in information technology (IT), business process
outsourcing (BPO), and various service-oriented sectors. The country’s strength
in the service industry is clear, playing a crucial role in GDP growth, job creation,
and international recognition. However, despite its achievements in services,
India’s manufacturing sector holds vast untapped potential. To truly become a
global economic superpower, India must now focus on excelling in manufacturing,
especially in advanced manufacturing that can elevate the nation within global
value chains. The Current State of India's Manufacturing Sector While India’s
manufacturing sector is on the rise, it only accounts for about 17-18% of the
country’s GDP—a figure that falls short compared to China's 27% and even
smaller nations like Vietnam, where manufacturing plays a significant role in
their economies. Although India has found success in certain industries such as
automobiles, textiles, and pharmaceuticals, it still trails in high-tech
manufacturing—an area where China has excelled. The insufficient emphasis on
producing high-value goods like semiconductors, advanced electronics, and
aerospace technology represents a critical gap that must be addressed for India
to position itself as a global manufacturing leader.
Bande Bharat: A Testimony to
India's "Make in India" Dream
the Government of India launched its flagship
program, "Make in India", in 2014 with the intention of transforming
the country into a world manufacturing hub. Perhaps one of the most impressive
results of this ambitious initiative is the shining example of Indian
engineering and innovation in self-reliance, the Bande Bharat Express. One of
the fastest, sofisticated, and well-designed at world-class standards,a small
hall mark of Indian engineering , the Bande Bharat Express, formerly known as
Train 18, marks a giant step forward in efforts to modernize India's rail
network with minimal dependence on imported components.
Essentially, Bande Bharat is a high-speed,
semi-bullet train that represents the dream of "Make in India."
Designed and manufactured by Indian Railways' Integral Coach Factory at
Chennai, this train represents indigenous manufacturing benchmarks in the
Railway sector. The success of Bande Bharat signifies more than a
transportation achievement; it signals to the world that India can design,
develop, and manufacture with own R & D to produce world-class products out of its own
resources.2
Features and Effect of Bande
Bharat Express
The Bande Bharat Express is fully
technologically advanced and has several special features that distinguish this
train in India. First of all, it is recognized to be India's first
semi-high-speed train, which will be able to reach a speed of 180 km/h. To travel
through major cities, the time taken is, therefore greatly reduced. It sports
latest amenities such as fully air-conditioned coaches, onboard free Wi-Fi,
ergonomic seating, GPS-based passenger information systems, and bio-vacuum
toilets. Furthermore, the train also features an energy-efficient design which
utilizes the system for the regenerative braking while giving it a greener
footprint.
Another distinctive feature of the Bande Bharat
is that it was conceptualized and manufactured completely within the country,
thereby saving on the cost of production compared to other trains. Technical
know-how too is wholly developed within Indian borders as well, a wonderful
reflection of the actual intent of "Make in India": to stimulate
national production while reducing dependence on imported technology. Building
such structures within the country and laying the blueprint of train design
initiatives will be opening the doors to employment opportunities, technical
skill development, and preparation for more sophisticated future technologies.3
Success of Bande Bharat also opens up the doors
for exporting railway technology from India to other countries. Countries in
Africa, Latin America and South East Asia are already keen on train
technologies that India had developed on its own. Hence the economic future of
this nation can be easily foreseen and so is the future of such initiatives
like Bande Bharat Express.
ISRO and the Success Story of Chandrayaan:
India's Space Odyssey
Another shining example of Indian innovation and
self-reliance in the field of space is the efforts of the Indian Space Research
Organisation (ISRO) that run the Chandrayaan missions. Chandrayaan missions
made India an elite group of nations that are capable of performing space
missions with much complexity. The triumph by Chandrayaan-3 has illustrated and
pronounced that India has a significant place in the space technology and is on
par with any nation at global levels.4
Just like Bande Bharat, the
Chandrayaan missions themselves are a testament to the "Make in
India" vision. ISRO's journey that began in the early 2000s with
Chandrayaan-1- the first Indian mission to Moon released in 2008. Chandrayaan-1
had the main purpose of finding out water ice on the lunar surface, which it
did so well, thus marking a big win in the extra space exploration milestone.
With Chandrayaan-1, India had marked a foundation stone for future lunar
missions to prove that India was not only competent to perform successful space
missions but also contribute valuable scientific knowledge to the global
community.
Chandrayaan-2: A Leap Forward
In 2019, ISRO moved on with Chandrayaan-2, a
leap forward comparison. This mission was planned for an expedition to the
south pole of the Moon, an area which has not even been fully explored till
date. Although the Chandrayaan-2 orbiter has entered lunar orbit and continues
to send valuable data to Earth, the lander, Vikram, sent by the mission
malfunctioned during descent and crash-landed on the lunar surface. Partial
success of Chandrayaan-2 has become the golden celebration for the country as
the orbiter is still sending crucial data regarding the lunar surface,
atmosphere, and mineral composition.5
Chandrayaan-3: India's Landmark Achievement
ISRO made the largest achievement in 2023 Chandrayaan-3.
Since it was a follow-up of Chandrayaan-2 mission and had objectives to land
its rover at the south pole of the moon. In that process, the ISRO learned
technical troubles faced by Chandrayaan-2 and worked out to improve the design
and functionality of the lander. This time, the mission was complete success
with the lander Vikram safely touching down on the lunar surface and the rover
Pragyan deployed to roam around the moon.
Chandrayaan 3 made India the first country to go
to land near the south pole of the Moon because of its interesting scientific
potential for water ice and other minerals. A successful mission did not only
boost Indian space ambitions but also reaffirmed the country's position at the
global leadership in space exploration. Through such complex lunar missions at
an insignificant fraction of what other spacefaring countries pay, India has
demonstrated the resultant ability to produce world-class results in space
technology using homegrown solutions.6
Impact of Chandrayaan on India's Space Economy
Success of Chandrayaan will have large
far-reaching implications in the economics of space for India. The requirement
for low-cost space technologies remains on the increase in the boom space
industry and micro satellites putting them in the perfect orbit in above space across
the globe. India happens to be one of the low-cost models in the orbit
presently. It has become the leader preferred by many countries and private
space companies to either launch a satellite or visit space at low cost.
There is, for instance, the fact that
Chandrayaan has spurred a new crop of Indian scientists, engineers, and
entrepreneurs who, both from within the country and outside, are keen to join
the fray of India's growing space sector. International cooperation and
partnership are further encouraged, as many other countries are gaining an
interest in coming aboard ISRO for future space missions. India has achieved
the important status of a player in space diplomacy, one that uses its
technological leadership as a means of building closer international bonds.7
Conclusion: India's Journey
toward Self-Reliance
The Bande Bharat Express and ISRO's Chandrayaan
missions represent the "Make in India" vision of India. They indicate
that the country can make its own technologies, irrespective of whether they
are comparable to the best in the world or not. Moreover, they are free from
foreign imports. Such success has gained popularity in terms of India's
position as a competitor in transportation and space-faring missions on the
world platform.
All of these projects fall into place like
building blocks that will guide the Indian perspective in the future. They
showcase the right investment in infrastructure, education, and research that
will make India self-reliant on a global level, a leader in high-tech
manufacturing, and pave the way for space exploration. The success story of
Bande Bharat and Chandrayaan is just a beginning to the prosperity and bright
future Indian innovation promises to be.
Why India Needs Advanced Manufacturing
The rise of China up the value chain-to make
everything from consumer electronics to spacecraft-demonstrates how advanced
manufacturing is a necessary tool for long-term economic growth. Advanced
technologies-in areas such as aeronautics, biotechnology, and
supercomputing-have avenues for wealth and global influence. Countries that are
producers dominate innovation and R&D, and therefore control global supply
chains. For example, the semiconductor industry is the bedrock of modern economies,
from a smartphone to a satellite. India has the world's largest pool of
engineers and scientists; India has the intellectual capital to establish
itself in these high-tech sectors, but talent in manufacturing is grossly
underutilized in the country.8
It also follows the development of expertise in
complex manufacturing because of India's larger strategic objectives. A strong
manufacturing base can reduce dependency on imports, particularly in critical
areas such as defense and telecommunication, where dependency is a national
security issue. Manufacturing also offers great avenues for job creation. While
the service sector primarily creates white-collar jobs, manufacturing can
absorb a more varied workforce including semi-skilled and unskilled labor, thus
solving the pressing problem of unemployment in India. Some success stories in
India with private sectors: Conglomerates like TATA and Mahindra: Pioneers in
Sophisticated Manufacturing in India
Tata Group and Mahindra & Mahindra are two
of India's major conglomerates that have greatly influenced India's industrial
and economic growth by promoting sophisticated manufacturing.
Tata Group
Tata Group has been at the forefront in shaping
India's manufacturing sector with its portfolio of diversified businesses. There
is one flagship under the group, Tata Motors, but it is basically known for
innovations in the auto industry in engineering. The acquisition of luxury
brands like Jaguar and Land Rover, as well as the concept of more complex
electric vehicles like the Tata Nexon EV, reflect the strong reliance of Tata
on technology, as well as sustainable manufacturing processes. Tata Steel is
another super giant within the group, which is renowned for its advanced
production processes, which puts Tata Steel as the global leader. The
investments in aerospace and defense also by Tata Group show entry into sectors
that are complex and carry a high value in themselves.9
Mahindra & Mahindra: Mahindra has entrenched
itself strongly in the automobile and aerospace businesses. From churning
world-class SUVs to developing electric cars like eVerito, it has proved the
convergence of innovation with indigenous manufacturing. Its aerospace wing,
Mahindra Aerospace, operates an aircraft-making business and would be entering
the high-precision engineering sector soon. Mahindra's strength lies in the
integration of sustainability with advanced technology-the fact that it was
betting on electric vehicles as well as eco-friendly manufacturing
processes-only indicates that.
While Tata and Mahindra are changing India's
manufacturing profile, it is simultaneously making the country shine on the
global map as a place for complex high-tech production. Their growth is nothing
but a testimony to success for India's initiative "Make in India."
Their growth also forms a bench mark for the advancement of more of such
intelligent manufacturing in future.
Lesson learnt by China
India has much to learn from the success in
manufacturing of China. Over the past three decades, China has moved from a low-cost
manufacturer of consumer goods across the world to an assembler and producer of
complex, high-value products, such as semiconductors, robotics, and even
aerospace technology. Factors that have propelled China's outlook include
massive government investment in infrastructure, a focus on education and skill
development, and policies that encourage innovation and technology transfer.
Some of these strategies can thus be adopted and replicable by India.10
For example, China has invested heavily in SEZs
and high-tech parks by providing tax incentives and world-class infrastructure
to attract foreign companies. The Indian SEZs have fared moderately badly due
to bureaucratic inefficiencies and an inadequate infrastructure system.
Streamlining regulations and reducing red tape along with raising logistical
support will make India's SEZs highly attractive to the global manufacturers.
China has also advocated R&D expenditure and
provided big amounts of money to technological innovation. India's R&D
expenditure stands at a miniscule 0.70% of GDP against China, which expends
nearly 2.5%. India would have to make a quantum leap in investment in R&D
by the government as well as private sectors if it needs to vie in high-tech
manufacturing.11
Steps India Must Take to Grasp Its Manufacturing
Opportunities
Becoming a global manufacturing hub will be the
result of many overarching approaches. It includes the following areas:
1. Investment in Infrastructure: Manufacturing
flourishes on efficient logistics, power, and transportation. India would need
to bridge its infrastructure gaps- very much needed in rural segments-and make
it easier for companies to set up and operate factories. Smart cities, good
ports, and efficient rail and roads require investment.
2. Skills Development Skills will constitute the
spine of high-end manufacturing. There is a great need to enhance vocational
training in the country, particularly in science, technology, engineering, and
mathematics education. Working with private enterprise and overseas to produce
industry-specific training programmers will also be very important.
3. Innovation Hub: Along the value chain, India
needs to be poised to become an innovation hub for technology. A culture of
entrepreneurship must be fostered, intellectual property well protected, and
substantial investment needs to be made in R&D by the government and
private sector. Incubators and accelerators may be established within
innovation parks to nurture start-ups working on high-tech industries.
4. Attracting Foreign Direct Investment It
succeeded in attracting FDI in sectors such as e-commerce and telecom but has
much work ahead for global manufacturers to attract. Policies need to be clear
and stable, approvals streamlined, and incentives targeted in the right areas
to make it more attractive for global companies.
5. Sustainable Development Focus: The world is
shifting focus toward sustainable development, for which India can leapfrog
away from traditional manufacturing practices toward 'green' technology.
Focusing on clean energy and incorporating ecologically friendly manufacturing
processes, India will be at a front position in sustainable manufacturing.12
India has enjoyed success in the global service
sector, and now it stands at the threshold of a new era of industrial growth.
By concentrating on high-end manufacturing, the country will be able to
stimulate economic growth as it stands ready to occupy the number one spot in
the world marketplace. The time is ripe for India to seize on these powers:
youth, intellectual capital, and growing domestic market, this leap from back
office in the world to becoming the factory of the world.
Proper policies, investments, and innovation
will surely enable India to tread on the same path as China and climb up the
global value chain. Life won't be easy for India, but economic growth,
employment, and influence in the world are worth all that effort.13
