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Fostering Growth

Prime Minister Modi’s Vision for the Indian manufacturing is set to propel the country forward

12/31/2014 12:01:20 PM
written By : Ashali Varma Print

For Non Resident Indians it is a call to come Make in India.For the first time since Indian Independence we have a government that is serious about making Indian companies compete with the best in the world. Prime Minister Narendra Modi has spoken, in world forums for the need to upskill India’s vast pool of labour and to making India the hub of manufacturing. We need this not only for India to be first among equals but also to fulfill the aspirations of millions of young Indians who need jobs. 

For decades, India was isolated and shut off for business because we followed the Soviet socialist model where the state provided for most things and there was no competition.

For instance till the 1980s India had only two manufacturers that produced Fiat and Ambassador cars as government policies prevented foreign car manufacturers from entering the market. This was the case in almost all manufacturing sectors. Thus monopolies were created and there was no incentive for either the Fiats or the Ambassadors to improve and we had the same models for decades!  

Unfortunately, this happened across the board due to the License Raj and protectionism, which also affected the work ethos of Indian labour and management. There was no accountability or desire to improve a product because there was no competition. Socialism resulted in labour laws that were counterproductive. The workforce was so protected that it had little incentive to perform or be productive as people could not be fired even to save a company from going bankrupt!

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