Strategizing is crucial
We all want to see India in a certain way. This transformation from our vision to reality is only possible when the resources needed for it are created. The fundamental issue is to have an economy with the capability to deploy these resources in the various growth sectors and do so efficiently. To address this and various other issues that act as hurdles in the way, well planned strategies are required.
GDP has three important contributors: agriculture, manufacturing and services. The growth that has happened in the last few decades can be attributed majorly to manufacturing and agriculture. Thoughts must be put to accelerating the growth trajectory by giving thrust to these two sectors.
An industrial output in the region of $1.25 trillion is required to double the current economy of $2.5 trillion to $5 trillion in the next few years. Hence, the need is to quantify ‘Make in India’. What we manufacture today may get redundant or be subject to various global changes. To increase the share of manufacturing to GDP, it is therefore important to ensure that it be must be modernized to make it relevant to tomorrow’s market. This process requires timely infusion of new ideas, which we are currently considering. Sectors that have not yet emerged as greenfield areas must also be identified.
China’s success can be attributed to state intervention. Contrastingly, India’s success story is private sector driven. Despite various issues the private sector faces today, it will be the growth engine for tomorrow as well. The ease of doing business is one of the many factors that we are working at to make that happen. The efforts have seen the light of day with the ranking coming up from 130 to 100. And we have already started gearing up to reach our present goal of 50. This is aimed at solving the issues entrepreneurs face today, which is our Prime Minister’s whole idea. It is to create an honest and transparent ecosystem that will allow entrepreneurs to work on their own with least interference and maximum facilitation from the Government. It is meant to detoxify the system.
Being part of global supply chain
Today the profile of manufacturing has changed. It is no more necessary to make everything in once place. We are to be part of global supply chain, which will lead to our total manufacturing to increase manifold. It was not a planned strategy to get linked with the auto component supply chain. But it worked and has succeeded. Ten such global supply chains are in the process to be identified for them to be the driving force for manufacturing. A new industrial policy will thus be framed. A mid term review of our foreign trade policies is also to happen. Industry must come ahead to put forth its ideas to help us improve on the policies and do away with regulations that impede its growth.
SMEs to benefit
A district development plan is getting chalked out, which will have its equal focus on the various parts of a state. The district administration will be trained in the ease of doing business so that the entrepreneurs of the area can encounter least of issues in being part of supply chain. This will majorly benefit SMEs.
Ease of trading
This is similar to the ease of doing business. The idea is to bring all the elements of export on one common digital platform. Slated to be a game changer, it will be linking even smaller places in the interiors of the country for exports. Talks are also on with the ASEAN leaders on our south east coastal strategy to create coastal zones.
For exports, we plan to bring in new commodities. Focussing on markets, we are in the process to plan separate strategies for different geographies for which I have been to various places like Latin America, South East Asia and East Asia. To state an example: We have FTA with Korea. We are the one of the largest exporters of marine products but we do not do any value add. If we do the value addition with the Korean money coming into India, we will be able to export more to Korea itself and also to the neighbouring countries due to the high Korean standard. Another thing that we must focus on is building trading houses that will be of huge benefit to SMEs. This is the model that Korea and Japan have adopted.