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Indian manufacturing dream - Coggle Diagram
Indian manufacturing dream
Post liberalization
Anti-dumping duties made related secondary products expensive and globally uncompetitive
Suffer from low scale, reliance of import of machinery, and neglect of R&D for emerging sector
First anti dumping in 1992, by 2000, many indutsrial houses secured protection from import on primary products
Policy suggestion
Get more Suzuki, GE, Apple--British Airways and GE started India's IT OUTSOURCING STORY with opening of BPO office in Mumbai in 1997
Develop end to end product ecosystem--Apple engineers worked for over ten years with sevearal Chinese firms to develop them into global quality component suppliers'
Cretae global quality basic research set up--deve expertise in basic science, chemsitry, metals, electronics etc.
Set up industrial labs to reverse engoineering product--will require long term focus and investment in Industrial Research , Design and Standards
Support manufacturing of products made by small and medium size firms
Localise production of fertilizer and plastics
Weakened in 1990s
Reduction in import duty, cheap import from china etc. led to focus on importing finished goodsand making low value addition goods
Sudden lowwering of duties>expose small firm to global competition without any experience of internal competition
India was ahead i computer hardware, pharma API, electronics etc. till mifd 1980s
Initially trading mentality dominated at time of opening of economy
The PLI plus initiative
Enhance productivity of entire product sectors
Support Industrail design, development and manufacturing to cut imports
Laying foundation for new product development
Low hanging fruits( import value)
Global trade in the machinary sector exceeded $ 2500 billion in FY 2022, India's share is less than 1%
Machinery( USD 54 billion), Fertilizer( USD 17 Billion), and Plastic production( USD 27 billion)
Furniture and fitting: US$800 MILLION