“China is 30 years ahead of India” [June 2012]

June 19, 2012 12:34 pm

Although 30 years ago we started on the same platform, China today is 30 years ahead of us and perhaps in an irreversible mode. The share of the manufacturing sector in GDP is only 15 per cent in India compared to 34 per cent in China and 40 per cent in Thailand- TV Raghava Badhya, Director and Vice President – Marketing, Makino India
Uncertainty looms over the machine tool industryThe manufacturing sector plays a key role in economic development, mandating increased government attention, as demonstrated by the November release of the National Manufacturing Policy. The Indian manufacturing sector is facing growth slowdown, slipping to 3.9 per cent in GDP during 2011-12 from 7.6 per cent during 2010-11. The machine tool industry, though led by manufacturing benchmarks, is mainly dependent on the growth cycle of the automotive sector. TV Raghava Badhya, Director and Vice President – Marketing, Makino India comments, “The year 2007 saw an upswing; 2008 – 09 faced a slowdown followed by an upswing again in 2010 – 2011. We wish to sustain last year’s momentum, overshadowing the current uncertainty”.
He further added, “As the economy grows so will the machine tool industry as every industrial, engineering and lifestyle product has its source in machine tools. So we hope that Indian machine tool industry will achieve the right pace and place in global market share”. Today, India has a small share of the global machine tool industry unlike China which is 7 to 8 times, and perhaps, the largest consumer of machine tool industry in the world.
China is 30 years ahead of usThe Indian manufacturing sector has achieved quality, economics of scale and deliverance for mass production. India ranks second in terms of manufacturing competence, according to report ‘2010 Global Manufacturing Competitiveness Index’, by Deloitte Touche Tohmatsu and the US Council on Competitiveness. However, India is still in the bottom 1/3rd of the value chain in manufacturing sector whereas China has moved to higher echelons of in all spheres of manufacturing.
Today India is lagging behind in investment in technology, infrastructure, shortage of working capital, finance, competition faced from imports and lack of skilled and trained manpower. “Although 30 years ago we started on the same platform, China today is 30 years ahead of us and perhaps in an irreversible mode. The share of the manufacturing sector in GDP is only 15 per cent in India compared to 34 per cent in China and 40 per cent in Thailand”, said Mr. Raghava Badhya.

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