Buoyed up by new government initiatives, India is stealing the spotlight from China as the place to manufacture marine equipment. Meanwhile, a thriving domestic market may not be far behind.
Faced with giving the 1.2 billion citizens of the world’s most populous democracy something to do, India’s government is looking at all avenues of wealth creation.
One of the most promising initiatives is called ‘Make in India’, (possibly sounding better as ‘Make it in India’) and is already opening the country to greater inward investment by foreign OEMs.
Prime Minister Narendra Modi launched the ‘Make in India’ initiative in September 2014 with the aim to transform the country into a global design and manufacturing hub. The move was also a timely response to the changes in the global economy. The official website explains:
“By 2013, the much-hyped ‘emerging markets’ bubble had burst, and India’s growth rate had fallen to its lowest level in a decade. The promise of the BRIC nations had faded, and India was tagged as one of the so-called ‘Fragile Five’.
Global investors debated whether the world’s largest democracy had become a risk, or an opportunity. India was on the brink of severe economic failure – was it too big to succeed, or too big to fail?”
Galvanized into action, the newly-elected government set about stripping away much of the red tape and multi-layered officialdom involved in attracting foreign investment. In addition to clearing a pathway to a skilled and inexpensive workforce, the government also provided some enticing incentives.
According to the website statement, ‘Make in India’ represents a comprehensive and unprecedented overhaul of out-dated processes and policies. Most importantly, it shows a change of the government’s mindset and a shift from being an issuing authority to more of a business partner.
Note: This is an excerpt of the country report published in the November issue of IBI magazine. IBI Plus subscribers can download the full report from our website.