Wednesday, October 2, 2024

Manufacturing: A Blueprint for the Future of India. India’s Manufacturing Dream:

 




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 al
l that effort.13

No comments: