{"id":392,"date":"2017-10-26T10:52:40","date_gmt":"2017-10-26T10:52:40","guid":{"rendered":"http:\/\/www.classiciasacademy.com\/blog\/?p=392"},"modified":"2024-06-06T16:41:08","modified_gmt":"2024-06-06T11:11:08","slug":"indian-manufacturing-needs","status":"publish","type":"post","link":"https:\/\/www.classiciasacademy.com\/blog\/indian-manufacturing-needs\/","title":{"rendered":"Indian Manufacturing needs to improve to compete in a Globalized Market"},"content":{"rendered":"<h3 class=\"western\" style=\"text-align: center;\">Indian manufacturing needs to improve to compete in a globalized market<\/h3>\n<p>The Indian manufacturing needs to improve dramatically in terms of productivity and efficiency to compete in a globalized market.<\/p>\n<p><b>Challenges before the Indian Companies:<\/b><\/p>\n<ul>\n<li><span style=\"font-family: Calibri, serif;\">The challenge before the Indian corporate sector today, in the face of continuing low levels of global growth and rapid changes in technology of production and preferences of the end-consumers, is how to sustain their growth in times of recession that engender protectionist regimes while competing in a fast evolving technological landscape.<\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">It is a matter of concern that many Indian companies are finding it progressively harder to adapt to this competitive and restrictive scenario. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">For many Indian firms, competition per se is a new phenomenon. Indian businesses have traditionally been risk averse.<\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">Most Indian firms, barring a few notable examples, lack sufficient grounding and experience in global competition because of the absence of intense inter-firm rivalry in the domestic business environment. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">Additionally, prolonged government protection has left them feeling complacent and ill-prepared to wage competitive battles at global level. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">These inherent weaknesses of our corporate are compounded by the slow international growth over the last few years and the so called \u2018debt-addiction\u2019 of Indian firms. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">As signs of the economic slowdown became evident, investment in equity markets stagnated, but corporate India continued to generate debt. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">Between 2009 and 2014, Indian corporate sector more than doubled its total debt &#8211; from Rs. 20 lakh crore to over Rs. 41 lakh crore or roughly $690 billion.<\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">A survey of over 18,000 companies in the CMIE Prowess database shows that in the past four years, while aggregate revenues grew by 77%, their debt doubled and interest payout increased by 146%. At the same time, net profits decreased by 32%.<\/span><\/li>\n<\/ul>\n<p><b>What is needed:<\/b><\/p>\n<ul>\n<li><span style=\"font-family: Calibri, serif;\">A large and populous nation like India needs manufacturing to be a significant part of its Gross Domestic Product (GDP) to ensure higher employment and prosperity. <\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-family: Calibri, serif;\">While domestic consumption in our country is on the rise, making quick and deep inroads into overseas markets will help us accelerate growth.<\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">Further, for profitable growth, we have to strive for a premium that will accrue only if we target products that need high quality design, engineering and manufacturing.<\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">Indian manufacturing, however, needs to improve dramatically in terms of productivity and efficiency to compete in a globalized market. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">Currently, most Indian companies operate at the bottom of the global value chain by selling components or unbranded products. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">This is true even of our firms in the Services sector. The test before our companies is to develop business capabilities that equip them to compete at the top of the value chain. <\/span><\/li>\n<\/ul>\n<p><b>Why innovation required:<\/b><\/p>\n<ul>\n<li><span style=\"font-family: Calibri, serif;\">A report of NitiAayog\u2019s expert\u2019s committee headed by Dr. TarunKhanna, for determining the contours of the Atal Innovation Mission (AIM), notes that \u201cBringing about innovation has never been as important as today, as the global economy shifts away from the industrial economy towards the innovation economy.\u201d <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">India lag behind many others, including its peers. The Global Innovation Index 2016 ranked us 66th out of 128 countries.<\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">Although this is a jump of 15 places over the last year\u2019s rank, India still lags behind China at 25, Russia at 43 and South Africa at 54. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">Such a dismal show is not surprising given our low levels of investment in Research and Development (R&amp;D). <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">According to the World Bank, in 2014, India&#8217;s gross spending on R&amp;D was about 0.63% of its GDP, against 1.5% by China and 1.1% by Brazil. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">Many developed countries, on the other hand, spend upwards of 4% on their R&amp;D. <\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-family: Calibri, serif;\">India was described as a top destination for Foreign Direct Investment (FDI) in R&amp;D, with our R&amp;D market valued at US$ 22.3 billion in 2016. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">The domestic investment in R&amp;D by Indian private sector, in contrast, remains minuscule as the government still accounts for 77% of all research spending in the country. <\/span><\/li>\n<\/ul>\n<p><b>Way forward:<\/b><\/p>\n<ul>\n<li><span style=\"font-family: Calibri, serif;\">Heavy investment in R&amp;D and innovation.<\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">Cmprehensive efforts to correct imbalances in education, providing the relevant skills to our people not only for the jobs of today but for the jobs of tomorrow, even as we invest more in creating infrastructure and conducive business environment. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">To work towards inculcating the \u2018culture and attitudes\u2019 needed to foster innovation and entrepreneurship.<\/span><\/li>\n<\/ul>\n<h2 class=\"western\">Anti-Naxal measures<\/h2>\n<ul>\n<li><span style=\"font-family: Calibri, serif;\">The Government has a comprehensive National Policy and Action Plan in place under which a multi-pronged strategy is being implemented to deal with Left Wing Extremism.<\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">This strategy is centered around security related measures, developmental interventions and ensuring rights &amp; entitlements of local communities etc. <\/span><\/li>\n<\/ul>\n<p><b>Security related measures:<\/b><\/p>\n<ul>\n<li><span style=\"font-family: Calibri, serif;\">Security related measures include assistance to LWE affected States by providing CAPF Bns, training assistance and funds for modernization of State Police Forces, arms &amp; equipment, sharing of intelligence etc.<\/span><\/li>\n<\/ul>\n<p><b>Development related measures:<\/b><\/p>\n<ul>\n<li><span style=\"font-family: Calibri, serif;\">On the development side, apart from flagship schemes of the Central Government in infrastructure, education, health, skill development, agriculture etc several initiatives have been taken specifically for development of Left Wing Extremism Affected areas. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">These include focused schemes for development of roads, installation of mobile towers, skill development, improving network of banks and post offices, health and education facilities. <\/span><\/li>\n<\/ul>\n<p><b>Role of states and how they are supported by the central government:<\/b><\/p>\n<ul>\n<li><span style=\"font-family: Calibri, serif;\">States have their own surrender policies for encouraging Left Wing Extremists to join the mainstream. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">The Central Government also has a comprehensive &#8216;Surrender-cum-Rehabilitation Scheme of Left Wing Extremists in the affected States&#8217; to allow Left Wing Extremists to return to the mainstream.<\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">The rehabilitation package inter-alia, includes an immediate grant of Rs. 2.5 lakhs for higher ranked LWE cadres and Rs.1.5 lakhs for middle\/ lower rank LWE cadre surrenderees to be kept in their name as fixed deposit which may be withdrawn after completion of 3 years subject to good behavior. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">They are also imparted training in a trade\/ vocation of their liking and are paid a monthly stipend of Rs. 4000\/- for three years. <\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">In addition, incentives for surrender of weapons\/ ammunition are also provided under the Scheme.<\/span><\/li>\n<li><span style=\"font-family: Calibri, serif;\">The Government of India provides reimbursement of expenditure incurred by the LWE affected States on rehabilitation of surrenderees in this policy under the SRE Scheme.<\/span><br \/>\n<h2 align=\"JUSTIFY\"><strong>Classic IAS Academy<\/strong> : \u00a0Best IAS Institute in Delhi<\/h2>\n<p>The Classic IAS Academy is regarded as the <a href=\"https:\/\/www.classiciasacademy.com\/best-upsc-coaching-in-delhi\"><strong>Top IAS Coaching in Delhi<\/strong><\/a>. The Academy steadily works towards realizing the dreams of both the Hindi and English students to participate in the civil service examination. The Academy also conducts seminars and workshops with the help of experts in order to train the student to think, feel and express like civil servants.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>Indian manufacturing needs to improve to compete in a globalized market The Indian manufacturing needs to improve dramatically in terms of productivity and efficiency to <a class=\"mh-excerpt-more\" href=\"https:\/\/www.classiciasacademy.com\/blog\/indian-manufacturing-needs\/\" title=\"Indian Manufacturing needs to improve to compete in a Globalized Market\">    [read more]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":394,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[15],"tags":[84],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Best IAS Institute in Delhi, Top IAS Institute in Delhi<\/title>\n<meta name=\"description\" content=\"Best IAS Institute in Delhi \u2013 Classic IAS Academy is the best IAS Academy and Institute for civil services examination in Delhi for the students.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.classiciasacademy.com\/blog\/indian-manufacturing-needs\/\" 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