The ‘Make in India' initiative laid the groundwork for manufacturing in India, but the COVID-19 crisis has actually propelled companies to start taking serious steps towards the actualisation of this movement. For any country to become an attractive investment destination, it should offer capabilities to sustain itself without relying on global players, and the ‘Make in India' initiative was aimed at positioning India as a country which can be both a manufacturing and consumption hub. However, manufacturing capabilities are a core element of this subset. The global pandemic has made us realise the importance of self-sufficiency as global supply chains collapsed much before the disease made an inroad into the country. Manufacturers in India are looking at business continuity through a new lens and focusing on establishing their own domestic supply chains.
The global recession has made India Inc. rethink manufacturing strategies and devise ways that can make the country's manufacturing self-reliant and at the same time cost effective. The current situation has been an eye-opening moment for us. While our endeavor has always been to ‘Make in India,' it is time we look at manufacturing at a holistic level wherein 100% of the product is manufactured in India and not just the final output with raw materials sourced from across the world. Efforts should be taken to make our country an integrated hub, as many products that are made in India, heavily rely on imported raw materials. Domestic manufacturers should make an attempt to gradually shift their supply chains to India, reducing dependence consistently. This can be achieved by expanding their own production capacity in India, or by seeking trusted partners who can supply raw materials within the region.
With the many challenges posed by the ongoing situation, it is an opportunity for manufacturers to leverage technology for upgrading their existing setups. The future of manufacturing in India should be smart factories. This includes much spoken about technologies like internet of things, cyber physical systems, artificial intelligence, big data and cloud computing, which will find their application now more than ever. All of this effectively combined with the conventional manufacturing processes and best practices will give rise to smart factories under the framework of Industry 4.0. During a crisis such as the current coronavirus pandemic, a smart factory can be run and accessed remotely with minimal human intervention at the site. Equipping the manpower with the necessary skills and knowledge is also essential to provide them a stable employment and requisite livelihood benefits.
Some of the other measures that will go a long way in making us self-sufficient and become a holistic manufacturing hub are:
- Investing in technology and intensive R&D can help in developing skills that we presently may lack or may have in low proportion.
- Positioning India as an important market in terms of demand, so that we see FDI coming in the market.
- Not only generating great talent, but retaining them in the country through lucrative career opportunities.
India has the capability to play a critical role in the global supply chains by leveraging its geographical location as well. If we can internally strengthen on four fronts: cost- economical labour, quality- high skilled workforce, adoption of technology- implementation of smart manufacturing and supply chain- robust infrastructure, India can emerge as the global hub for manufacturing in the future.
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