‘Stop comparing India with China, at least in manufacturing’
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At 'Make in India' panel, hosted by IIM Bangalore's PGPEM program, Shivaprasad Naik, Senior Vice President, PVC, Reliance Industries, highlights the differences between the two business models and calls for focus on 'Make for India'
JANUARY 11, 2015: Drawing attention to the dangers of "blindly" comparing the two countries, at least in manufacturing, SS Naik, Senior Vice President, Reliance Industries, emphasized that China's manufacturing sector was driven by global demand while India enjoyed a huge opportunity in the local market.
"We are a population of 1.2 billion. There's huge opportunity here. Yet we import idols for Ganesha Chathurti and diyas for Deepavali from China," he remarked, clarifying that there was no harm in 'Make in India' but manufacturers would certainly do well to first 'Make for India'. "We keep talking of our demographic dividend. We must leverage this demographic dividend by understanding the wants of our aspirational youth and by making products for them," he said.
Ruing the "shortcut" approach to prosperity that India's traders often take, Naik gave the example of the Canton fair, which he said when he last visited in 2008 "startled" him for the large numbers of Indian traders who thronged it. "They purchased everything from toys to tablecloth which they would come back and sell at thrice the price in India, enjoy the profits and go back for the next Canton fair," he exclaimed.
Addressing a packed auditorium at the panel on 'Make in India', hosted by IIMB's Post Graduate Program in Enterprise Management (PGPEM) and moderated by Sushil Vachani, Director, IIM Bangalore, on Sunday (Jan 11), Shivaprasad Naik, along with Arun Chandavarkar, CEO & Joint Managing Director, Biocon, Chris Rao, Vice President, UTC Aerospace System, UTAS, and Ananth Agastya, Executive Director, HAL Management Academy, called for a mindset change among entrepreneurs, bureaucrats and government to address challenges unique to the country like poor infrastructure, power shortage, delayed IP processing, lack of talent and failure to deploy unproductive land for manufacturing.
"Government, industry and labor are the key stakeholders in the 'Make in India' mission," said Ananth Agastya, Executive Director, HAL Management Academy. "The government should show that they mean business by ensuring harassment-free administration, industry must bring in investment in technology and productivity and must stop seeking a protective environment, and distinction between contract labor and organized labor should go," he observed, calling for an Indian philosophy of manufacturing without "blindly aping the rest".
Using the analogy of a 'yagna', Agastya said: "We have made the 'sankalp' which is 'Make in India'. We must now offer 'yantra', 'tantra' and 'mantra' to complete the 'yagna'. We must ask ourselves whether 'Make in India' is measurable, whether we have data on each sub sector, whether our policy makers can be advised on which of these sub sectors are likely to grow so that they can focus on them and whether policy change will attract entrepreneurs to these sub sectors. Academic institutions like IIM Bangalore can develop models for each of these sub sectors. Only then can we say that policy making is driven by analysis."
Listing the pivots to increase the thrust on manufacturing, Arun Chandavarkar, CEO & Joint Managing Director, Biocon, said India must take advantage of the demographic dividend by giving the youth skills and knowledge, ensure good governance and end bureaucratic delays, nurture entrepreneurial culture by taking it from services to manufacturing, bring in global alignment in corporate governance and leverage it to facilitate partnerships and investment. "It is only when we have enablers like talent, skill, infrastructure, guidelines and fiscal policies can we increase manufacturing's contribution to the country's GDP from 17 percent to 25-26 per cent," he said, declaring that "notions which say it is more glamorous to be in services, not in manufacturing must be busted."
Describing 'Make in India' as a relevant mission, Chris Rao, Vice President, UTC Aerospace System, UTAS, said the sector needed to develop a supply chain of vendors, down to tier 4 suppliers, so that the integrators could focus on technology and innovation. "India has huge engineering talent. We see huge opportunity here. What we also need is strong policy support and good government support. Else, Mexico, Brazil, China, Poland, Singapore and Taiwan could beat us in this game," he said, calling for professionally-run industry-focused organizations to create ecosystems that support manufacturing.
Earlier in the day, IIMB Director Sushil Vachani welcomed the distinguished panel. Moderating the discussion, he also took a few questions on new initiatives taken by IIM Bangalore to support entrepreneurial culture and social responsibility among its students.
The panel discussion was followed by an Open House on IIMB's Post Graduate Program in Enterprise Management, which caters to the needs of diverse industries, including manufacturing.
Professor Abhoy Ojha, Chairperson, Post Graduate Program in Enterprise Management (PGPEM), said: "IIM Bangalore designs its programs to cater to management education needs of different domains in India. The Post Graduate Program in Software Enterprise Management was launched in 1998 to partner the software and IT industry in its growth to global prominence by providing world class management education to middle and senior managers. The program has now been re-positioned to cater to the needs of diverse industries, including manufacturing, in Bangalore and neighboring cities. The panel discussion, 'Make in India', provides IIMB an opportunity to engage with captains of the industry to understand the opportunities and challenges of the manufacturing sector and fine tune its offerings to partner with the industry to make Bangalore (and India) the global hub for manufacturing."
About the program:
The Post Graduate Program in Enterprise Management (PGPEM) is a 22-month weekend residential management program. Classes are scheduled on Friday afternoons and Saturdays. The program is designed for the needs of high performing professionals from across industries who want to continue working even as they upgrade their management knowledge and skills. It provides them a strong grounding in general management through the core courses in the first year, and a rich choice of electives in the second year.
Candidates with over 3 years of work experience may apply. Selection is based on CAT/GMAT/GRE score. Those with over seven years of work experience can take the PGPEM entrance exam that will be conducted by IIMB on 8th February, 2015. The last date to apply online is 31st January, 2015. Visitwww.iimb.ernet.in/pgpem for details.
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