For years together the world has witnessed acute competition between Asia's two biggest economies; viz, India and China. Undoubtedly China always had an upper hand in terms of growth, labour and capacity. However times seem to be changing. For India today has a new leader. A business-friendly leader! Perhaps the nation was devoid of one such since Nehru to Gandhi era. The interesting times are here. That's because innovators, investors and the Government will now come together to build a modern India.
Economists, investors and leaders worldwide are pretty enthusiastic about India's market potential and the manufacturing drive. David Frigstad, Chairman of global growth consulting firm Frost & Sullivan, amongst others has been quite buoyant about Indian economic and growth prospects. He is quite impressed with new Indian Prime Minister's aim to create a manufacturing foundation for the future. He believes connecting the India's rich information technology prowess with development in manufacturing will open new vistas for growth and prosperity for India. Therefore, India's role on manufacturing grounds could be a game changer. So much so that Mexico, America and Europe are looking to take factories back from China and bring them home. According to David, its not just manufacturing that requires a boost, but it is also about getting the right skill sets and linking education with Government support, policy and tax strategy which will prove as a catalyst.
India is strong in sectors like aviation, defence, healthcare and automotive. And these productive sectors can prove as a backbone for laying the foundation of India's manufacturing growth. However, while infrastructure story is turning around for India, the chronic bureaucracy is the biggest impediment. If India were to overcome this, then there is no reason as to why India cannot outshine China. "Make in India" concept can work wonders for India. Today, China is grappling with serious issues. Lack of transparency is the biggest grey area for China. While China boasts of a pro-business environment, there is lot of incentive to shift manufacturing base to India.
As David aptly puts, it is quite essential for the leader to invest in the future and develop inspirational ideas about where they want their citizens to be in 20 years. Laying down a proper roadmap with respect to development of key areas of infrastructure, education, human rights, clean water, energy, connectivity and healthcare will go a long way in building up the modern India. While the new government spearheaded by Modi seems to be on the right track, execution is all that matters the most. And we certainly hope that we do not face any disappointments in this regard.