Make in India: the global context

• Other Authors: Hội thảo quốc tế Ngân hàng và Tài chính thế giới 2015
• Format: Conference or Workshop Item
• Language: English
• Published: Trường Đại học Kinh tế 2020
• Subjects: GDP; Global Environment; Global Leadership.
• Online Access: http://repository.vnu.edu.vn/handle/VNU_123/97652
• Institution: Vietnam National University, Hanoi

The world is fast changing, with a rebalancing of manufacturing weight across the developed and developing economies. China, with its rising wages and increasing cost of production, is fast losing its cost advantage. Russia too is facing challenges in maintaining its competitiveness, with rising wages, increasing factor costs, and geo-political issues. The US and Mexico, on the other hand, are reclaiming their share of the global manufacturing pie on the back of declining factor costs and rising productivity. India, in this competitive global environment, is starting from a position that is far from advantageous. India’s manufacturing sector, with an I5% share of overall GDP, compares poorly with peers like Malaysia, Thailand and Indonesia. India also suffers from some critical drawbacks like a lack of an enabling infrastructure, poor perception of India in terms of ease of doing business, and a lack of proven ability to compete at a global scale. At the same time India’s long term prospects remain intact, with its core strength of human resource, a strong base of entrepreneurs, and a robust and growing domestic demand. In many ways, therefore, the stage is set for India to transform its manufacturing and seek global leadership. The paper draws heavily from secondary sources of data and is of exploratory in nature