how India can rise as technology super factory?
The implications are for India in the near future considering what’s happening around the world India is being labelled as a possible future technology factory for the world. So moving supply chains to India and manufacturing in India is that going to bring about prosperity and also it is going to bring problems, let’s discuss that a little bit in this blog
Now the world faces one of the biggest crises that has been known to man. The pandemic at a scale is infecting people that has not been seen before and the amount of people that have been infected and the amount of deaths continues to rise at an alarming rate all over the world. Now china is being largely blamed for the pandemic but more importantly this has started to raise questions about the whole world supply chain and china has been largely responsible for supplying products and goods to the rest of the world and including India. And this has forced several companies to shift their production from chine to India. There’s a lot that needs to happen to India before companies start pushing their production in India.
Let’s take china’s example in the 1990s, when china started to open up their trade. The one thing that the country did which really led to their rise is the amount of infrastructure investment that was done by the Chinese government and by the Chinese people. So they started building factories, roads, they started building powerhouses and electricity supply and water supply. So as a manufacturer if you went to the government and said “okay this is what I want to manufacture”, there was a lot of support from the government for land, for electricity, for water and in general infrastructure. They made special economic zones and factories and manufacturing facilities and then also provided those at a very nominal rate to people who wanted to manufacture. Hence allowing for the quick and rapid rise of china as a manufacturing superpower. This in turn allowed the Chinese government to sort of control most of the companies.
Biggest issue for India still remains infrastructure, we still lack roads even in commercial areas, and we still lack proper electricity supply because we don’t have consistent electricity supplies even in commercial areas and some other major infrastructural challenges exist in India. If India has to move forward towards a technology manufacturing facility or a superpower factory for the world, what India needs to do is start investing in infrastructure.
There is a massive differentiator between the kind of infrastructure that exists in a country like china and the kind of infrastructure that exists in India and that needs to change really quickly. What also needs to change is the kind of investments that Indian companies are making. For the longest time smaller companies and smaller start-ups have looked at china as the supply chain which has led to an economic rise in India. A lot of businesses in India now exist on the premise that they are manufacturing in china and they can do that because the manufacturing systems in china are so well built that prices can be much lower and hence products can be cheaper and hence you get a better value added services at the end. so if you start moving manufacturing facilities from china to a country like India where the infrastructure at this moment lacks, prices for commodities will definitely go up, so as Indians we should be ready to pay those additional prices as well and support Indian brands who start to manufacture in India because it will take a long time for us to reach the manufacturing capacity that china is at now.
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