PREPARING FOR THE NEXT WAVE OF MAKE IN INDIA

India needs to prepare for the next wave of Make in India

Innovators find new opportunities even in the challenges. The opportunities of the COVID 19 pandemic may help India accelerating towards the fulfillment of Make in India effort. 

Differentiation will help businesses

The COVID pandemic adds a new dimension to the supply chain. In addition, to supply chain efficiency and cost-effectiveness, supply chains also need to ensure that the products manufactured reach the customers even under extreme conditions.

 “China+1” 

Countries, including Japan, are asking their companies to move out of China amid the COVID 19.  The primary considerations of these countries include business continuity, effective operation, and resumptions.

The companies will focus on implementing a distributed supply chain and tapping the new market for their goods.  The South Asian countries, including Thailand, Vietnam and Myanmar, are already wooing the investments.

India needs strategic planning and execution to leverage the global manufacturing opportunity.

India’s capabilities 

• Domestic consumption market demand- The demand for B2B and B2C goods in the Indian market can generate additional value in comparison to the Chinese and other markets that may offer a production cost advantage.
• Economy  – The Indian economy will witness significant growth as the demand for the suppliers, vendors, and entrepreneurs will increase when companies bring their manufacturing base to India.  
• Infrastructure: India needs to build a plug-and-play infrastructure to ensure that companies entering India get seamless distribution and export services.
•  Technology, IT & service capabilities: India must also utilize its IT skills and capabilities to help companies go digital.
• Young Indian population –  The young Indian population constitutes a vibrant consumer base, and they also have an innovation sprit along with a zeal to work hard.  

Five actions items that will help India prepare for the opportunities offered by the COVID 19 pandemic: 

1. Target segmentation: Identify the target industries, companies and countries that suit the bill for the China+1 strategy for India, including the sectors like manufacturing components, medical devices etc.
2. Intense reach out strategy: India needs to reach out to the maximum in the shortest possible time frame by involving the policymakers, stakeholders and volunteers.

• EODB ( Enhanced Ease of doing business) – Rapid construction and production processes along with a Dashboard monitoring for real-time monitoring will help to enhance the ease of doing business.
• Attractive incentives – India needs to be aggressive in terms of offering incentives like lower tax rates and incentives for the new establishments.
• Portfolio of case studies – India must also create a portfolio representing the MNC’s that have gone line in the Indian market after diversifying from countries, including China and Europe, in the last 3-5 years.

India now needs to execute the Make in India strategic plan smartly by utilizing its strengths. An effective strategy execution will help India improving its GDP, employment generation, and economic prosperity. Make in India should focus on global MNC’s that are looking for new markets, diversified supply chains, and rapid product development.