India shares a minuscule 1% of the $8 tn world trade, more than 70% of which is in the area of processed manufacturing. China, on the other hand, shares around 3% of the world pie and continues to dominate the world with its newly acquired status as the manufacturing hub of the globe. However, the situation might change for the better, if India Inc.'s latest level playing with the dragon is any indication. But taking the dragon on its own turf, in a game in which it dominates the world, would not be an easy task for India. Is India Inc. ready?
Just
a couple of years ago when the manufacturing dragon
announced its plan to hit the Indian markets with products
at abnormally low prices (motorcycles at just Rs. 24,000!),
it sent shivers down the spine of the Indian industry.
Suddenly, there was a sense of gloom among local manufacturers,
as they knew competing with Chinese companies was virtually
impossible. For, they lacked the scale which the Chinese
manufacturers operated. However, two years down the
line, the situation has totally changed. The fear factor
has gone and has given way to a new way of thinkingChinese
manufacturers so far have been unable to crack the Indian
great bazaar India's manufacturing minnows can do it.
This change was all pervasive during the recent visit
of the Indian Prime Minister to China where he was accompanied
by a host of entrepreneurs from the country who wanted
to explore business opportunities in Mainland china.
China's
pre-eminence in manufacturing is indisputable today.
The country's rise in manufacturing however has not
been sudden. Rather, it is attributed to an articulated
strategy ably supported by well-executed reform processes
over the years. It was this, which helped China to emerge
as the world's new `workshop'. India, in contrast, embarked
on the services bandwagon and succeeded well by emerging
as one of the world's major IT powerhouses. However,
the country, in the meantime, did not pay adequate attention
on developing its manufacturing skills.
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