Importance of Manufacturing and Does Mindset the real cause for Dismal Condition of Indian Manufacturing!!

Does Mindset is the real cause of Dismal Condition of Indian Manufacturing!! I believe Yes!!

The problem is that “There is too much Distance but too less Displacement” inside any manufacturing company in India.

Here of course I don’t challenge all companies but yes majority.

First we need to understand why “Manufacturing” is major concern and priority for the Govt. of India from last many years.

It is contributing somewhere around 15 – 16% of GDP in last few years against the target of at least making it to 25% under National Manufacturing Policy.

Why the Govt. wants to achieve this. Why simply we don’t focus on Service Industry which is already contributing healthy >50% of GDP in India. Whereas in China Mfg. is contributing 50% of their GDP.

So why we not simply leave it to Market Forces and let it be driven by pure business interests or environment.

Why Govt. wants to intervene and push Mfg. in India.

Long time back when Industrialization happened in UK and USA, a large Middle Class emerged out of it.

First Service Sector still is unable to absorb illiterate population or low education class. Which Mfg. absorbs.

One direct job in Mfg. can create 5-10 indirect jobs which mostly consists of labor class.

A country like India has a huge population of this segment which is the bottom of the pyramid.

So it makes huge sense that Mfg. revival will create a large lower middle class population. It can reduce the huge burden of MGNREGA project, etc. Because of Ripple Effect “Creation of Wealth” will happen on pure basis. See where China has gone today.

Now the other important reason qualifies is that no nation can stand on its feet or claim to be super power without ability to make on its own soil. I’m not against outsourcing. But again, a nation, can only feel proud, when it makes lots if not all of critical things on its own. It can be any of Defense, Space, Nuclear, Automobiles, etc.

Now understanding “”Does Mindset is the real cause of Dismal Condition of Indian Manufacturing!!””

Mfg. in India is dismal because of macro issues such as poor infra, poor electricity, port congestion, unskilled workforce, too many laws, govt. interference, lack of single window clearance, etc.

But Does Ever Indian Mfg. Companies Looked Inside Themselves and Analyzed Their Own Mindset. Do They Ever Introspect.

I feel they don’t. And it is really much larger problem instead of blaming every time policies and other issues.

There is Too much Distance and Too less Displacement.

Indian Mfg. companies hardly think Big. They run away from competition. They have inferiority complex.

Why can’t they switch to 5 days or 4 days working culture in order to attract good talent.

Why they come on campus placements always last, to attract the left overs.

Why they offer minimum packages on campus when they also need to work on their own market.

Why don’t they ever have Strategy Departments in their Org. structure.

Why they not encourage neat and clean rather comfortable working conditions.

On Contrast Service Sector aces all these above points. They are front runners in packages, talent hiring, strategy, etc.

Indian Mfg. rarely look at overseas market.

I know many who are reading this blog will not agree. Fair enough. Read below.

How many Brands really do we have on Global Arena. Other than Tata owned Jaguar and Land Rover, we don’t have any single Indian Brand in top 100. Do we ever think on this.

There are few Indian Corporate Houses who are doing really good. Such as Mahindra, Hero, Tata, Royal Enfield, etc.

But they are very few. Why don’t we have Toyota, Ford, Airbus, Boeing, Lock Heed Martin, Volvo, Mercedes, Audi, BMW, Ferrari, Lamborghini, Samsung, Apple, Thyssen Krupp, BAE, Bombardier, Harley Davidson, Louis Vuitton, etc. After all these are all Mfg. companies in different sectors.

I would humble urge to look at Mindset first and start working on Strategy to achieve something Big.

God Bless!!


Published by Rishabh Agarwal


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