Government's apathy towards industry, research and development has pushed manufacturers to become traders and component assemblers
Ever since this country gained independence the one area that has been, and continues to be totally neglected by successive Governments is without doubt the manufacturing sector. Be it granting of funds for research and development, promoting innovation, or providing a hassle-free environment and requisite infrastructure for setting up manufacturing units, the Government’s apathy in this regard has been incomparable.
Consider the scenario where a householder wanting to set up a home and equip it with the very basic household and electronic items, like television, refrigerator, geyser, cooler/air conditioner, a microwave and a washing machine, (more of a necessity than a luxury in the present times), ventures out shopping and is routinely offered a range of foreign brands like Sony, Haier, Samsung, Siemens, lG et al, to choose from with not a single Indian brand worth its name offering a creditable alternative. This makes one wonder whether any Indian brand is actually making its presence felt in the country and the world mart. The answer no doubt leaves one disappointed.
Most of the indigenously manufactured domestic appliances that are commonly used are ‘mature’ products. This means that these gadgets have been there for decades and have become obsolete because no innovation has taken place to either upgrade them or to offer any new patent. Over the years most of the top-of-the-line foreign brands have had a free run in the country. They have opened mini workshops in India, imported the main electronic components from the countries that manufacture them and using ‘screw-driver technology’ have assembled these items in this country with the help of inexpensive, semi-skilled workers, who, with some amount of training, have become adept in the art of assembling products.
Is it really so difficult to set up units that could manufacture the basic components of such productsIJ Is it really necessary to import all the parts that require latest innovative technological expertiseIJ Could we not become self-sufficient and do away with this dependence, and also offer a cost-effective and competitive product in the world marketIJ
Unfortunately, in the present scenario, this is a difficult proposition. The reason is not a dearth of talent or competent manpower, the reason is the Government’s neglect in providing an environment conducive to setting up and promoting an industry that is technologically advanced, innovative enough to meet the modern parameters and economically competitive. Also, the hurdles are numerous, starting from lack of sufficient funds for the research and development sector, crucial for attracting talent, competence and expertise, and also for buying technologies from developed nations, if need be.
Another problem that most States face is lack of basic infrastructure, like uninterrupted power supply, good roads and transport — vital for establishing and managing any manufacturing unit successfully.
But, besides infrastructure issues, the archaic labour laws, the vast army of labour unions and human rights activists are concerns that deter any honest enterprise.
There are numerous instances where land allotted for industry has been fraudulently transferred to the land mafia for other purposes. Unfortunately, there are no effective laws to punish these violators. Wide-spread corruption, politico-bureaucratic-corporate nexus resulting in inordinate delays and cost ineffectiveness, discourage many a prospective industrialist to venture into the area. Providing impetus to the manufacturing sector is even more pertinent for creating necessary jobs. It is, therefore, imperative to streamline the land acquisition mechanism in the country in a manner that balances the interests of affected families with industry affordability.
For the industrial sector to flourish, the Government needs to be more industry-friendly, which sadly it is not. The ever-increasing import budget far outweighs the exports which do not spell well for the economic health of the nation. It is high time that the Government formulate policies conducive to modernise the country’s technological expertise, one that keeps pace with latest innovations, so that people start looking at indigenously produced goods rather than patronise foreign brands. Such a move would also greatly help in generating much-needed employment for the country’s fast growing youth population.