The MakeInIndia pitch has been around for sometime and it has worked great to a larger extent with high value items and larger Manufacturers. Over the past 15 years we have newly managed to setup a fairly large and widespread Ecosystem for Mobile Phone Manufacturing Units, SMD Service Centers, additional Investments in Automotive Manufacturing etc.
In addition to that we have good number of Textile Units, Aerospace Units, Pharma Units. But there is a still a big gap with respect to MSME's adopting MakeInIndia approach for products outside the traditional ones that are already in India.
Before going to details we need to understand why the MSME segment needs these support.
The MSME Segment consists of many Small Scaled Industries which are driven by a Single person or limited number of people. Many are constrained with respect to Financial Management , Management Bandwidth, Long Term Planning, Exposure to Markets Scenario,Strategic Thinking, Process Design etc.
They are usually occupied with the Task in Hand and known source of Customer Requirement. They are self driven, self motivated , small scaled operations, many times confined to a region or state and often busy with their operations. So due to the limitations around the way how an MSME is setup or functioning they need that extra help or push to think wider and beyond the region. This is where the government can make a huge difference.
Here are some specific areas where I feel the Government should support for Small & Medium Sectors.
1. Entire Segment Focus & Drive - When we mean Entire focus - we need to take a segment and localize everything in India right from the raw material to the machines ( if possible ). When the technical knowhow is abundantly available why should we look outside. The MakeInIndia Strategy should cover the complete Supply Chain from Raw Materials to Finish Goods - then we have the complete Ecosystem in Place. For ex -if we take Mobile Phones Manufacturing - we should look at localizing from the Chipset to Electronic Components, LCDs and even to the basic Mobile Phone Covers. If we take Pharma then it should be from the Bulk Drugs to the end product.
2. Category Specific Guidance Bureau - Here the requirement is to have a Guidance Bureau or Team setup for Specific Categories with people from related Business. So that they have all knowledge with respect to Product, Process, Technology, Markets, Volumes, Exports, Imports, etc. They can have the Teams built with government officers and industry people who are more hands-on and accessible.
3. Internal Marketing & Communication- These Category Specific Guidance bureaus should be known to the people and the information should be easily available. Currently it is not easy to find the right source. By the time we go through multiple sources the energy is already drained. They can market themselves through trade shows, meetings or seminars or webinars , Some communication needs to happen regularly so people and MSMEs know that such a team exists for support.
4. Creating Awareness to Local & Global Markets - This is a very important piece of the Export from India Story. Most of the MSMEs are not aware of the potential of the business outside India. They are mostly looking inwards for their local needs.The mature and well established markets have a good system of communication and creating awareness but the other usually overlooked products need such awareness and access to Global Markets. In some cases these are happening through Chambers of Commerce or Privately run organization but those are specific to the already existing Industries and larger suppliers. We need to Scale it down for the millions of MSMEs and potential Manufacturers.
5. Ready to Run Infrastructure in Major Industrial Spots - One very important point in the whole aspect. When we are referring to Small Scale Industries they usually do not need a very large setup for running. Most can be operated from a smaller building. Here is where the Government can play a big role - why not setup ready to run buildings with the all manufacturing clearances, power supply, environmental clearances etc and Lease the Premises to the MSME. Imagine if an MSME has to invest in the Real Estate and get the clearances - we are losing 6 months to 1 year and quite a huge amount of upfront capital locked in.If the Government can setup these Cottage Industry Type Plug and Play Model for MSMEs- many would have the resources to focus on the machinery and technology rather than worrying about building and permissions.
6. Mentorship through Technical Support Centers for MSME's - As mentioned above MSMEs have a lot of Constrains with them - be it either Strategic vision, Resource Optimization, Cost Planning or Process Design etc - having a Government Driven Technical Center will help the MSMEs to get access to all the various fundamentals of running a Business so that they are able to Focus on the core operations and they can seek support from Domain Experts. Rather than them depending on private consultants who charge a ransom for all services , if Government ties up with Industry Experts and Domain Experts they can quickly help when there is a need. Many are willing to spend time to support a business grow for a very minimum charge or even free for a smaller period of time.
These are some of the essentials other than the regular ones like Subsidies, Loans etc. When these things happens through a Government Organization it makes it easier for smaller companies to get such essential services free or at subsidized cost and there is still that trust factor when it happens through Government Organizations. Private Organizations come with their own Agenda and Cost !!
#MakeInIndia, #BuyInIndia , #ExportfromIndia
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