{"id":52357,"date":"2019-09-19T17:36:52","date_gmt":"2019-09-19T12:06:52","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=52357"},"modified":"2019-09-19T17:37:00","modified_gmt":"2019-09-19T12:07:00","slug":"answered-discuss-the-challenges-faced-by-india-to-evolve-as-global-manufacturing-hub-like-china-suggest-some-measures","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-discuss-the-challenges-faced-by-india-to-evolve-as-global-manufacturing-hub-like-china-suggest-some-measures\/","title":{"rendered":"[Answered] Discuss the challenges faced by India to evolve as global manufacturing hub like China. Suggest some measures."},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction. <\/strong>Contextual Introduction.
Body. <\/strong>Challenges to emerge as a manufacturing hub. Measures to overcome the challenges.
Conclusion. <\/strong>Way forward. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

China produces almost half of the world\u2019s goods. The low cost of manufacturing in China played a huge role in making it the 2nd<\/sup> largest economy. India can become the next global manufacturing hub. Favourable demographic dividend over next 2-3 decades, availability of low cost labour and strong domestic market provides an opportunity for India to turn as a global manufacturing hub.<\/p>\n\n\n\n

Challenges to emerge as a manufacturing hub:<\/strong><\/p>\n\n\n\n

  1. Complex labour laws: <\/strong>The\nbiggest hindrance is the labour laws and reforms in the country. The Global\nRights Index (2016), published annually by the International Trade Union\nConfederation (ITUC), ranked India as one of the 10 worst countries for working\npeople. Large-scale exclusions of workers from labour law, violence and arrests\nare the reasons for India\u2019s poor performance.<\/li>
  2. Complex taxation system:<\/strong> The\ncomplex taxation system, a huge amount of paperwork and corruption may be the\nmain cause of worries among the investors. India started out with an overly\ncomplex GST, which has dampened investor sentiment and created tremendous\ncompliance burdens on small and medium sized enterprises (SMEs).<\/li>
  3. Land acquisition difficulty: <\/strong>Stringent land acquisition laws and inflexible\nlabour regulations make it difficult for India to attract investors in the\nmanufacturing sector.  India\u2019s benchmark\nland acquisition law must be amended to make it easier to buy land for defence\nand development projects in the fast-growing economy, while also ensuring the\nrights of farmers.<\/li>
  4. Political delays:<\/strong> The\nbiggest concern of policy makers, analysts, and investors related to manufacturing\nis around political hold-ups.  In every\nsession, the working of Parliament is interrupted which delays the approval of\nimportant bills.<\/li>
  5. Power deficit:<\/strong> Greater\navailability of power is needed to realise the dream of becoming a\nmanufacturing hub. India is running short of power with a deficit of 5.1%. The\nComptroller and Auditor General (CAG) has also recently claimed a loss of $37\nbillion due to lack of transparency in the allocation of the coal blocks.<\/li>
  6. Un-skilled human capital:<\/strong> India\nlags far behind other nations in imparting skill training. Not too much has\nchanged since then.<\/li><\/ol>\n\n\n\n

    Measures to overcome the challenges:<\/strong><\/p>\n\n\n\n

    1. Government\nshould push further land reforms making it easier and affordable to acquire\nland.<\/li>
    2. Moving from\nover-protective to Flexible labour laws would help in reducing labour issues.<\/li>
    3. Predictable\ntax regime would allow better pricing and less input cost.<\/li>
    4. Investment\nin infrastructure is must to evolve India into a manufacturing hub.<\/li>
    5. Well\nconnected means of transport (road, rail, inland-waterway) to keep\ntransportation cost minimum.<\/li>
    6. Development\nof industrial corridors would attract setting up new industries.<\/li>
    7. Innovation\nis necessary to come up with new technology, new products and new brands.<\/li>
    8. Research\nand development needs to be given focus.<\/li>
    9. Harnessing\nnew technologies like Artificial intelligence and making country part\nindustrial revolution 4.0 is important.<\/li><\/ol>\n\n\n\n

      Given the potential of manufacturing sector and the need to shift workforce from primary sector, Government of India has come out with \u2018Make in India\u2019 initiative to make India global hub of manufacturing, research and innovation. This initiative is undoubtedly an inspiring initiative, which has reduced the risk factors of investing in India for many foreign companies. The availability of skilled labour, a business friendly environment, good infrastructure and low manufacturing cost are some conditions required for the success of the Make in India campaign.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Demand of the question Introduction. Contextual Introduction. Body. Challenges to emerge as a manufacturing hub. Measures to overcome the challenges. Conclusion. Way forward. China produces almost half of the world\u2019s goods. The low cost of manufacturing in China played a huge role in making it the 2nd largest economy. India can become the next global… Continue reading [Answered] Discuss the challenges faced by India to evolve as global manufacturing hub like China. Suggest some measures.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-52357","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/52357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=52357"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/52357\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=52357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}