Govt needs revisit its policies

June 26, 2014 7:10 am

Govt. should open some sectors like railway and natural resources to private players to raise competition and improve quality
 Mitsubishi established Mitsubishi Electric India (MEI) in 2010 to drive its India business. MEI also supports Mitsubishi Electric’s social infrastructure related businesses, such as power systems and transportation systems. Rajeev Sharma talks about Indian economy and the necessary steps to be implemented in order to become global workshop.
The big ironyIndian economy has become service-based economy with the service sector contributing to around 55 per cent of the GDP followed by manufacturing sector and agriculture sector.
There has always been a talk about the abundance of natural resources and the irony of exporting raw materials and importing finished goods as far as manufacturing sector is considered.
Smart city is also one concept which could promote urbanisation through development of new manufacturing hubs. There are examples of cities in India where one big industry has led to development of large SME cluster which could be taken as a typical case study on how to make manufacturing hubs.
Accelerating factorsKey factors which positively affect the manufacturing sector include transportation, energy infrastructure, govt. policies, public health, education and skill levels, information and communications technology etc.
The country needs to look at its biggest strength i.e. population. Rich dividend could be drawn out of demographics if the manpower is armed with vocational skills. Efficient labour makes all the difference and India is fairly lagging in this area as per manufacturing cost competitiveness report of BCG. As per CII McKinsey study, China’s labour productivity level is 2.8 times than that of India’s and China’s manufacturing sector productivity is 5.5 times than that of India’s.

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