“Govt. should give emphasis on promoting SMEs” [June 2012]

June 19, 2012 12:17 pm

National Manufacturing Policy proposes to increase the manufacturing growth to 12-14 per cent so that the sector can contribute 25 per cent to GDP by 2022. “To achieve the proposed target, the government needs to not only concentrate on large scale manufacturing but also in promoting SMEs”, – Manish Walia, Sr. Director, Industrial Automation Business Unit, Delta India Electronics
Boost investors’ sentiments The manufacturing sector in India can enhance economic development, increase the productivity and sustain the competition from the global markets. The manufacturing sector is labour oriented and India has considerable potential in offering cheap labour and a gigantic market for world goods and services. However, the country lacks in the infrastructure development which actually a deterrent to the expected growth of the manufacturing sector in India. Moreover, price pressures and power shortage continued to upset the growth. In the recent time, the industrial growth rate has drastically slowed down in India. “Boosting investors’ sentiments, both domestic and foreign, can help in enhancing the growth in the manufacturing sector”, believes Manish Walia, Senior Director, Industrial Automation Business Unit, Delta India Electronics.
Control inflation & interest ratesThe Indian industry is characterised by adoption of cost-effective, state-of-the-art manufacturing facility. Commenting on whether the industry is in right track of achieving manufacturing excellence, Mr. Walia said, “The adoption of advanced manufacturing technology (AMT) has enabled the industry to produce globally competitive products. The industry has made enviable strides to catch up with the latest hardware and solution technology”. However, India’s manufacturing sector has been struggling since last one year due to high inflation and high interest rates. “The 2 per cent hike in both excise duty and service tax in the recent budget would negatively impact the industry, particularly the SME sectors. Recently RBI has reduced the interest rates by 50 bps to heighten the industrial and economic activity. This has boosted confidence in the manufacturing sector”, shared Mr. Walia.
Focus AreasThe recent global economic crisis and continuous interest rate hikes to control the high inflation has adversely affected the pace of manufacturing growth. Emphasis should be on human-resource skill development, global competitiveness through technology up-gradation and foreign investments. The government’s plan to establish National Investment and Manufacturing Zones (NIMZ) can boost the manufacturing industry. The lack of capital for the SME sector is another major issue to be tackled efficiently. The SMEs should be encouraged through easy access to finance. Several small scale manufacturing units lacked human resource policies, skilled workers and adoption of quality tools. “Along with skill-development, we should also bring out standards and benchmarks for their processes and products”, Mr. Walia suggests. “Infrastructure development is another core issue to boost the manufacturing sector”.
Promote SMEs along with large scale manufacturingIn India, the industry accounts for 28 per cent of the GDP and employ 14 per cent of the total workforce. Globally, in absolute terms, the country ranks 12th in terms of nominal factory output. Textile manufacturing is the second largest source of employment after agriculture and accounts for 20 per cent of manufacturing output, providing employment to over 20 million people. The National Manufacturing Policy proposes to increase the manufacturing growth to 12-14 per cent so that the sector can contribute 25 per cent to GDP by 2022. Mr. Walia points out, “To achieve the proposed target, the government needs to not only concentrate on large scale manufacturing but also in promoting SMEs”. Other major issues related to employment generation are skill development, technology up-gradation and business-conducive policy structure.The recent global economic crisis and continuous interest rate hikes to control the high inflation has adversely affected the pace of manufacturing growth. Talking on the steps to be taken by the government in promoting manufacturing sector and creating jobs, Mr. Walia said, “A fresh spurt of growth can only come from encouraging investor sentiments, both domestic and overseas. The government should also arrest the high inflation rates and cut the high interest rates”.
In addition, quick implementation of key infrastructure projects like industrial corridors, national Investment Manufacturing Zones and improvement in power supply will help in rejuvenating the confidence of the industry. He also feels the necessity of clarity in terms of land acquisition and environmental-clearance policies.
About DeltaDelta is a leading multinational with revenue of 7.8 billion US$ for 2011. Delta is a globally-enabled manufacturer 41 manufacturing facilities, 55 R&D centres and 95 sales offices around the world. Delta India Electronics Pvt. Ltd., a 100 per cent subsidiary of Delta, has been operational in India since 1992. The company is responsible for developing business in the SAARC region and is also recognised as the “Centre for Technical Excellence” for the SAARC region. With over 8 regional offices, 3 manufacturing facilities at Rudrapur, Puducherry and Gurgaon and 2 R & D centres in Gurgaon and Bangalore, Delta has a strong presence across India with more than 100 channel partners. Besides catering to the Indian market Delta also exports to several countries including Nepal, Bangladesh and Sri Lanka.
Delta’s StrengthDelta’s strength in power electronics and extensive knowledge in control technology has made the company a leader in the industrial controls marketplace. With its knowledge and experience in automation control, Delta focuses its expertise on “Drive, Motion and Control”. In recent years, the company has integrated its industrial automation products, developed industrial control networks, and offered integration services to the clients around the world. Delta’s products include AC motor drives, servo drives and motors, temperature controllers, programmable logic controllers, human machine interface modules, optical encoders, communication converter modules and CTA Timer/Counter/Tachometer. Delta automation products are applied in the processing machines used in the food industry, textile industry, chemical industry, electronics industry, metal industry and plastic industry. Its automation equipment are also used in the pharmaceutical industry, printing industry, as well as for energy saving air-conditioning and water treatment facilities. According to Mr. Walia, “Delta aims to provide end-to-end comprehensive, innovative and total solution to all its valued customers”.