Mr Narendra Modi’s historic speech from the Red Fort on 15th august 2014 made a lot of strong messages. The strongest message in Mr Modi’s speech was given to the business fraternity about ‘Zero Effect & Zero Defect’. It may sound simple, but it is a huge value for every Indian entrepreneur who is part of the manufacturing industry.
It is known to everyone that the economic conditions of Indian manufacturing industry, is not so glossy. On the contrary, manufacturers are even struggling to survive. The list of challenges that the manufacturing segment is facing is huge. For example, increasing raw material cost, ever growing prices of industrial land, non-availability of labour and delayed payments. A large chunk of manufacturers in India even believe that globalization is a myth for them and they consider global opportunities as threat for their domestic business, although I personally do not agree with this ideology.
No one can rule out the global opportunities which are knocking the doors of Indian economy. But, to capitalize this global opportunity Indian entrepreneur must have to achieve manufacturing excellence and have to carefully work upon competitive enhancement for their respective business.
On such tough economic backdrop for business, the urge of ‘Zero Effect & Zero Defect’ from Mr Modi is more like an open challenge rather than a motivational statement. By looking at the overall scenario and the status of Indian manufacturing, Mr Modi’s urge can also be termed as thumb rule to live up to the expectations of global opportunity.
Moreover, the list of challenges may remain as they are, but if the thumb rule is followed then the manufacturing segment of India will bring much awaited growth for the nation.
Glossy Side of Indian Manufacturing Sector
According to management consulting firm McKinsey & Co, India’s manufacturing sector could reach USD 1 trillion by 2025. This could be achieved on the back of the continually growing demand in the country and the inclination of multinational corporations to establish low-cost plants in India. Up to 90 million domestic jobs could be created by 2025, with the manufacturing sector contributing to about 25–30 per cent of India’s gross domestic product (GDP). However, manufacturing sector is the biggest employer for the country.
So, if we look at this picture, Prime Minister’s urge looks like a well timed challenge for the manufacturing segment. However, to capture these opportunities manufacturing SMEs in the manufacturing industry holds great amount of expectations. While urging the manufacturing sector, Mr Modi must extend a support mechanism which can enable the manufacturers to look beyond the regular growth.