Thursday, April 7, 2011

INDIA VS CHINA AND OTHERES: WHERE IS THE MASTER OF RING(MANUFACTURING) ?

Yes, the whole world is looking at India for their business 
opportunities. But let's not live in a dream, it is the time to face 
the reality. It seems that India's being trapped in the 
course of economic  slavery.

INDIA KNOWN FOR BPO SERVICE AND OTHER SUPPORT SERVICES.


 It seems that other foreign countries using the Indian knowledge and manpower from designing their product and services to selling their products. Also using our services and technologies for their products/services. All these things designed for a customer paying in United States  and other continents only.

A good example is the IT industry we all are so proud of, and what are we content with...Peanuts...!! Until and unless our businesses don’t go from the service orientation to manufacturing orientation .we will be living a lie.


Where  actually INDIA stand in this arena of global market. India is the fourth largest economy in the world (In terms of purchasing power parity), while on the other hand, it has the second largest group of software developers after U.S. if we focus on the other industries, 100 of the fortune 500 have R& D facilities in India .let’s talk little bit about our knowledge group, India sends the maximum number of students to the U.S. colleges than any other country in the world. In 2008, over 94,563 Indian students enrolled in the U.S.


Once the well-known management guru keinchi ohmae told to an reliable  Indian newspaper that Indians are not good at manufacturing. He told that even if they do what we tell them to do, they always need to understand why they are doing it that way,they are more inquisitive then the Chinese.

CHINA KNOW FOR MANUFACTURING UNITS AND JOBS

Do you think mr.keinchi ohamae was right? According to some other stats japan also coming under the same league before some decades ago…but now it’s totally changed and transformed…we just got the crack news about the divested earthquake and then smashed by tsunami. After all this happenings also, it’s ready to regain its status again with more surprises.


Now, just a quick look at India, let’s see some facts of Indian manufacturing industry contribution to the economy has lagged that of the service sector. As a result marginally from 25 % to 27% during 1990-2005.
While on the other hand services share of economy grew from 37% to a specular 52%.if we will talk about the some reports from BCG the manufacturing exports were 6% of GDP($37 billion) compared to 35% ($712 billion) for china. About 60% of china manufacturing exports are by firms based outside china.

Now, it’s a totally different story for India, as per the industrial output registered a robust growth of  8.6% year on year(2010-11).if you will watch the sectors like IIP ,mining or manufacturing  shows a record of 7.7% and 9-1% respectively. If you will check electricity index, it has registered 4.7 this year(2010-11). 

It has been emerged as one of the top ten industrial production country and ranked second in terms of manufacturing competencies also.(report UNIDO).

My friends always asking about the queries about SME’s and SZE’S, this report shows that export from SZE’s grew by 46.7% year on year Rs. 2,23,132 crore(us$ 49.09 billion)during apr-dec 10-11.  

I know what you want to hear from the post at the end that’s a well end.finally the country’s smart engineer’s, researchers and scientist together with its English speaking work force and democratic regime make it an attractive destination for manufacturing.it was since the last 50 years India was trying to doing so and finally fulfilled its dream partially.