India ranked sixth among Top-Ten largest manufacturing countries in UNIDO report 2015

As per the UNIDO Report, India stands 6th among the world’s top 10 largest manufacturing countries. Of the top ten industrial producers, China is at the No. 1 position followed by the USA, Japan, Germany and South Korea. Indonesia stood at bottom of the list, at 10th position. The global growth rate of the manufacturing production has reduced to 2.8% in 2015. Due to the increased index of industrial production and Manufacturing Value Added (MVA), India has climbed ranking by three places. India’s MVA increased by 7.5% in comparison with previous year, as well as International Investment Position (IIP) of the country increased by 1% in the fourth quarter of 2015.

Significance, meaning and Impact of the Achievement:

• India is the largest democracy of the world, having huge economic potential but is commonly seen in perspective of the burgeoning gap between rich and poor. India has followed an idiosyncratic pattern of development, certainly compared with other fast-growing Asian economies like China, Japan and South Korea. The importance of the services rather than manufacturing industries, with respect to the GDP, has been widely noted. In accordance with further developmental process India has emphasized skill intensive rather than labour intensive manufacturing and industries with higher than average scale.

• This ensures improvement in standard of living of the people, promotes healthy lives & well being for all and of all ages, ensures inclusive and equitable quality education and promote lifelong learning opportunities for every individual. 

• It can boost up the mainframe policies and promote to build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. 

• It can also promote peaceful and inclusive societies with fast growing GDP, GNI bringing effective, accountable and inclusive institutions at all levels to truly help to become an emerging powerful economy of the world.

UNIDO (United Nations Industrial Development Organization) & it’s Objective: 

UNIDO headquartered in Vienna (Austria) with membership of total 171countries is a specialized agency of the UN tasked with promoting the industrial development in developing states and economies in transition with a particular emphasis granted to poverty reduction, inclusive globalization and sustainable development under United Nations Development Group (UNDG). 

The primary objectives of UNIDO are the promotion of industrial growth and technological progress, most effective use of human resources, equitable development through industrialization, industrial development and environmental protection, international cooperation in industrial investment and technology. The organisation believes that competitive and environmentally sustainable industry has a crucial role to play in accelerating economic growth, reducing poverty and achieving ‘Millennium Development Goals’. 

The organization therefore works towards improving the quality of life of the world’s poor by drawing on its combined global resources and expertise in the following three interrelated thematic areas:

i) Incorporation of Productive activities for poverty reduction

ii) Building of Trade capacity

iii) Environment and energy

Government Initiatives to Boost-up Manufacturing Sector:

Make in India and skill India:

According to the Report, India, by 2020 is set to become the world’s youngest country with 64% of its population in the working age group enabling the framework for setting up of 1500 institutes of skill development will help augment the number of those entering the labour market, ease-of-doing business and financial sectors reforms. Government initiates to implement a quality skill education and job creation under ‘Skill India’ and ‘Make in India’ with a knowledge based and productive economy. 

A major national initiative called ‘Make in India’ which is broadly focusing on making India a global manufacturing destination. The key thrust of the programme would be on cutting down in delays in manufacturing project clearance, develop adequate infrastructure and make it easier for companies to do business in India. The 25 key sectors highlighted under the programme contains bio-technology, chemicals, defence manufacturing, automobiles, electronic system, food processing, mining, leather, port and textile, railways, oil and gas etc.

The key motive of implementing different government initiated schemes is to ensure that manufacturing sector which contributes more than around 15% of the country’s GDP is increased to 25% in next few years, which will ultimately generate more employment opportunities for the poor and give greater purchasing power in their hands. 

‘Make in India’ endures with the following points with enhancing the reform in the manufacturing sector.

1. Cutting down the procedural delay: to create efficient administrative machinery which would cut down delays in project clearances.

2. Tax sops & focus on innovation: SMSE industries role in manufacturing could play a big role in urged for providing tax concession to any industry for setting up manufacturing unit in the country.

3. Skill development and thrust on education: Mapping a skill development demands for specific sectors along focusing objectives of government, academic world, industry, job seeker for ensuring industry specific skills. National Skill development Agency (NSDA) initiated work on creating a labor market information system.

4. Reforms in labor laws: Flexibility of labor laws, to provide sound safety net to workers, focus on physical infrastructure creation as well as creating a digital network for making India a hub for global manufacturing of goods ranging from cars to software’s, satellites to submarines and paper to power.

5. Demographic dividend: A state and centre solutions to work as a team to poised to reap rich dividend for being one of the youngest nation in the world.

SEZ (Special Economic Zone):

SEZ have generated interest in developing countries, for instance, countries pursuing an exported growth strategy expect SEZ to stimulate external trade and encourage economic activity in domestic market. SEZ is expected to translate into exponential growth in the manufacturing sector. The government of India granted several initiatives such as, tax incentives and world class physical infrastructure, to SEZ units to increase the production of manufactured goods. Government expected to provide a fillip to the manufacturing sector especially exports of manufacturing goods.

To attract substantial freight investment by allowing 100% Foreign Direct Investment (FDI) in the manufacturing sector. It gives boost to infrastructural development along with generate employment.

30% of operational SEZ are engage in manufacturing which significantly dominates India’s export from SEZs, export orientation, lower tax breaks and the fiscal environment has played an important role in attracting export-oriented foreign investment in area like, hardware, apparel and shoes etc. 

NMIZ (National Manufacturing & Investment Zones):

They are much more effective to offer a three important significance for SEZs vis-s-vis:  and would be autonomous and self regulated developed in partnership with the private sector, both the central as well as state government would fund trunk infrastructure in NMIZ.

i) Flexible labour policies, 

ii) Easier access to land and

 iii) Several concessions, 

Proposed by Department of Industrial Policies (DIPP) to implement in the manufacturing policies. Export-oriented units (EoUs) these units can be located within the NMIZ the application for setting-up of NIMZ will be forwarded by the state to the DIPP for approval. DIPP will constitute a Board of Approval, which has consider all applications for establishment of NIMZs and approve such proposals as are found feasible. Each NIMZ will be notified separately by DIPP. Central Government will also improve/provide external physical infrastructure linkages to the NIMZs including Rail, Road (National Highways), Ports, Airports, and Telecom, in a time bound manner. This infrastructure have created/upgraded through Public Private Partnerships to the extent possible. 

The State Government is responsible for selection of land suitable for development of the NIMZ including land acquisition if necessary. Government owned land or Private Lands falling within the proposed NIMZ, to be acquired by the State Government or Land under existing industrial areas/estates/sick and defunct units including PSUs. NIMZ would be preferably developed on waste lands; infertile and dry lands not suitable for cultivation. The use of the agricultural land will be kept to minimum. There should be reasonable access to basic resources like water. It should not be within any ecologically sensitive area or closer than the minimum distance specified for such an area. 

 The policies has envisaged fiscal sops to boost manufacturing, incentives of green manufacturing, relaxation in environmental regulations in its nature.

Traffic Corridors (Road & Rail):

T he government is increasing on road and rail infrastructure by making investment by making investment friendly policies. It has moved quickly to enable FDI in Railways to improve infrastructure for Freight and high speed trains.

Freight corridors, sea ports, dry ports are examples that government likely to invest in this project, as a result, goods will reach at their destinations in time, easy and rapid transportation to reduce time and cost of product and manpower, to attract the foreign investors in finished product and ultimately increase the export of the country.

Industry, Railways and Roadways are play important role to flexible their efforts. Exporters are easy to reach their consignment to destination within deadline while Road is far more expensive mode of transportation. It can connect the sea-ports in structure of to give easy and accessible transportation route for logistics in a nationwide spread.

Transportation from one place to another provides separate and exclusive tracks for freight train is to reverse the trend overtime. According to timetable as fast as express trains to enhance the capacity of freight handling of train is highly loaded and gives first preference for passing the express trains will resolved. The western corridors mostly exports and import containerized traffic and eastern corridor will be used most of the coal from mines in east India to power plants in North. It helps to handling capacity of Railways and decongests ports when consignment arrives.

After connecting the North-South corridor (Delhi-Chennai), and East-West corridor (Kolkata-Mumbai)  and east coast corridor connecting ( Vijaywada- Kharagpur)  and south corridor connecting (Chennai- Goa) making this venture more effective and profitable.

Traffic corridor generally a linear area that is defined by one or more mode of transportation such as, highways, rail-road or Public transport which shares a common course. Road corridors are improved to trade in all parts of the country linking with the ports to big manufacturing units to make the trade more smoothly and effectively as per the increasing demand of the market.

Rashtriya Avishkar Abhiyan:

The Rashtriya Aavishkar Abhiyan (RAA) envisages motivating and engaging children of the age group from 6-18 years in Science, Mathematics and Technology through observation, experimentation, inference drawing, model building, etc. both through inside and outside classroom activities and processes. It seeks to create curiosity, excitement and spirit of innovation and exploration amongst school children, by encouraging higher education institutions to assist secondary and elementary schools in the study of Science and Mathematics.  It impacts on the children to adopt the creative view and knowledgebase on the their ongoing development will help them in future to adopt the special skills and inbuilt dimension to widely help them into the coming young energetic and super skilled India.