- Two points from PM Modi’s Independence Day speech has lingered in our minds:
- “Come, make in India” – urging global manufacturers to set up base in India, manufacture here and then sell in wherever they wish to.
- To turn the brand “Made in India” into a highly respected one – a call to young entrepreneurs.
- Hurdles facing the two can be summarized as being based on Laws, Land and Labour:
- Despite India having abundant skill, labour and English-speaking people, global investors are wary of establishing base in India.
- The Vodafone case and fears of elaborate rules being tweaked and applied retrospectively has made it them jittery about FDI.
- The problem of Land Acquisition, which is a sensitive topic in the country, is troubling even domestic manufacturers.
- Incidents such as that of Tata Motors and Nano Cars in West Bengal, increasing tension over the Land Acquisition for Special Economic Zones (SEZs) have deterred many.
- Global economy heads in the direction of cheap labour leading to establishment of manufacturing base in Thailand, China etc. India should capitalize on this the way that China has.
- Ancient labour laws have deterred companies from approaching India. This has to be changed and the atmosphere has to be turned into a ‘friendly labour ecosystem’.
- Additionally, India should also concentrate on retaining local talent by offering better incentives. The greatest firms have Indian talent at the helm leading them.
- Read at: http://www.thehindu.com/todays-paper/tp-business/hurdles-to-make-in-india/article6327050.ece