News Analysis: This year of 2013, India expects to Export approximately $325 Billion Dollars of Goods. It has a Trade Deficit of $100 Billion Dollars presently. Due to this imbalance, India has established a “National Manufacturing Policy” which itself establishes ‘National Manufacturing and Investment Zones’.
The Indian Government realizes that it needs to Accelerate Development of “Higher-End” Manufacturing for the Country’s long term Economic Benefit. Presently, Manufacturing is largely confined to: Chemicals, Computer Software, Engineering Tools, Jewelry, Leather Goods, Refined Petroleum Products and Textiles. None of the aforementioned are considered by Manufacturing Experts to be ‘Sophisticated Constructions’ (SC) such as Airplanes, Computerized Numerical Control Machinery, Helicopters, High-Speed Locomotives, Liquefied Natural Gas Ships, Robotics, Submarines, or Similar Constructions.
The Indian Government needs Foreign Direct Investment to occur with regards to its Manufacturing Sector. To get Currencies from Foreign Investors is the ‘Easier’ part of the “Equation for Manufacturing Growth” (EMG). Liberalizing Investment Returns will bring in the monies from Mutual Funds, Private Investors, and other entities.
The more difficult segment of ‘EMG’ are bringing in experienced Manufacturing Engineers and Management which have dealt with ‘SC’. They are few and far between as to their abundance Internationally. A Technique used, by a neighboring country, was to engage WIDELY in the use of Joint Ventures in Constructions. To date, India has engaged in this process very lightly, but growing, some people say.
Upon determining what Products the Indian Government would like for Export, appropriate funding for Research & Development will be immediately needed. In the Product Designs, any Added Value” that can be added vs. competing product in the marketplace will give India an ‘Edge” for sales. Since India will be Product-Wise the ‘New Kid On The Block’, Product Warranties that are All-Encompassing will be necessary for Consumer Satisfaction.
Efficient Marketing of the Fabrications is essential for Customer Awareness of Indian Products. A word to the Wise is: “Do NOT Besmirch the Products of Others”. Always take the “High Road”. Discuss how your Products Exceed the Needs of a possible Customer; and do it at a Competitive Price. Ergo, a Customer “Gets More Product For Less Money”; Who can resist getting Value?
Timely Delivery of “High-End” Products ARE IMPERATIVE. Only Manufacturing Fools deliver Aircraft, Machinery, Ships, and such Late. There is NO EXCUSE for it barring a Catastrophe of Epic Proportions. When it occurs, it shows Ineptitude of Cost Estimating, Production Planning, Fabrication, and/or Vendor Selection. Worst of off it shows Management has NOT and does NOT Comprehend (ed) where the Company went Wrong Earlier. What “Short-Cuts” in Manufacturing or Inspection were taken to FINALLY get the Product (s) delivered? (Many Big-Name Manufacturers do; but they deny this of course.) Any of Corporate Management that allows for such Mediocrity should be terminated. It is Unacceptable!
Once the Products are delivered on a timely basis to Customers, Communication by Manufacturing Management with Customer Management is essential. It conveys to Buyers that your Company Cares about their Needs. The Old Adage that: “Good-Will Is Worth 40%” is as true today as when it was first spoken.
“Say What You Mean, And Mean What You Say”.
The very capable Indian Government appears to be moving in the correct direction as to seeking Increased Manufacturing. Intelligent, hard-working Indians are readily available towards this realization. There is absolutely NO REASON the Indian People cannot attain that which they desire as to growth of Manufacturing in the Nation; especially with their Inspired Leadership.
All of this enthusiasm by the Indian Government bodes well for Investors who can help the Manufacturing Sector develop. Opportunities avail themselves to those who seek them.