Indian manufacturing needs to leapfrog
November 22, 2017
It cannot be over-emphasized that Indian capitalism is unique and that India needs to focus on manufacturing to bring in prosperity for its people. However, in my opinion, it is not merely manufacturing that needs attention but export oriented manufacturing. The reason for stating that we need to create an ecosystem favorable to export oriented manufacturing industries is that it is the key to really drive India forward.
India needs to "leap frog" some of the conceived western lifestyles like automobile-centric society the same way it leapfrogged in the telecommunications sector. For the longest time, most Indians did not have a landline telephone, unlike developed countries in the West. However, when the cellular phones hit the market, India adopted that technology as fast as, if not faster than, the West. As a result, India leapfrogged into the world of cellular phones without having moved into the landline phone era. A similar kind of leapfrogging is desirable also in India’s manufacturing economy.
While it is important to produce and manufacture for domestic consumption, a key driver for economic growth will come from export oriented manufacturing. Thus, the State and the industry bodies ought to focus on nurturing industries that can cater to global markets and demands. Not only will it generate employment, but also bring in much required forex and act as a catalyst for bringing in more investment.