Make in India – an aspiration
June 30, 2015 3:17 pm
Headquartered in Daegu, South Korea, TaeguTec is one of the leading players for modern tooling and solutions. TaeguTec India was established in the year 2000. Having a state-of-the-art factory in Bengaluru, the company manufactures comprehensive range of tooling.
TaeguTec observes that ‘Make in India’ initiative combined with appropriate initiatives on ease of doing business will yield results. In an interview with Neha Wagle, L. Krishnan, Managing Director, TaeguTec India elaborates the roadmap for ‘Make in India’.
Terming this initiative as ‘a great opportunity’ Mr Krishnan said, “The thrust on local manufacturing has obviously a positive ripple effect for metalworking participants.” One of the targets under the government’s Make in India campaign is to achieve an increase in the contribution of manufacturing output in the country’s GDP to 25 per cent by 2022 from the current levels of 16 per cent. “This commitment has all the making of creating substantial demand across the entire value chain in the manufacturing industry,” he adds. “With attention – and budget – being diverted to improving infrastructure as well, a virtuous cycle of demand and investment can be expected which in turn will help boost the overall economic scene.”
Ease of doing business to yield resultsSharing his viewpoint on how ‘Make in India’ can achieve success, Mr Krishnan said, “This initiative combined with appropriate initiatives on ease of doing business will yield results. Several of these initiatives will have to come from states working together with the centre. Ease of doing business, which includes regulatory simplification, effective compilation and dissemination of approval-related communication ideally one-stop and online, and improved delivery of services to investors are possibly some of the most crucial steps towards ensuring the success of this campaign.”
There is a great need to reduce procedures and approvals and make the approval system time-bound and non-discretionary, Mr Krishnan advocates. “There is no compilation of state-wise and sector-wise approvals required conducting business in India. A handbook of laws and regulations to facilitate information on starting and operating business could pave the way for regulatory reforms, streamlining and simplification of clearances etc.,” he said.
A single window clearance system and introduction of a simplified Combined Application Form (CAF) could greatly facilitate and encourage investment, he adds. Challenges before ‘Make in India’Several challenges still remain on ground starting from procedures, obsolete laws, lack of availability of land, lack of availability of skilled labour etc. “The complicated regulatory and approval mechanism is quite a huge challenge unto itself. Lack of a CAF, restrictive online options, multiple visits required by investors for physical submission of forms, lack of tracking mechanism for investors and industries department, lack of transparency and accountability needs to be worked on to realise the vision behind Make in India,” Mr Krishnan explained.‘Make in India’ is essentially an aspiration, but for the first time, all these structural issues are being addressed together, he opines. “We hope it’ll start yielding results in the coming years.” Simplify defence and public sector procurement The government is focusing on developing India’s defence industry with a sense of “mission” and considers it at the heart of the ‘Make in India’ programme. According to Mr Krishnan, “Aerospace and defence manufacturing initiatives by the government will serve a major catalyst to spur activities within the country. We are appealing to the government to simplify defence and public sector procurement and offer level playing field to the local manufacturers.” TaeguTec’s initiativesIn India, TaeguTec has a wide reach in the market with eight branches across the country and presence of stockist’s in almost every major industrial town. In an aim to meet increasing opportunities, the company is gearing up to offer competitive products and solutions in terms of technology and productivity to its customers.
____________________________________________________We are appealing to the government to simplify defence and public sector procurement and offer level playing field to the local manufacturers.
L. Krishnan, Managing Director, TaeguTec India