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Tuesday, November 11, 2014

Make in India

I don't know if anyone can remember; but there was a time when Japan was laughed upon for its manufacturing abilities. It's hard to even find articles on the net referring to that period when Japan was notorious for cheap, badly made knock offs of almost everything under the sun from cars to cameras. Over time Japanese pride changed the image and soon "Made in Japan" stood out as a brand in itself. It overtook the world in technology and in the World War of economics; almost took over the entire world. Many smaller nation like Korea, Malaysia, Thailand and Taiwan tried to imitate the Japanese model but with limited success. China is probably the only nation that has succeeded in a variation of what the Japanese did by cloning and owning (as its own) ideas rather than coming up with path breaking new ideas. In time that too may change as is the fact that "Made in China" though not a brand in itself - is now a given for the entire manufacturing spectrum from bad to the best for everything made in the world.

India on the other hand; despite having a relatively freer economy as compared to the Chinese some 30 years back - lost out in the race to become a world manufacturing hub despite its so called low cost labour advantage. I have tried to search for answers and have come up with a conclusion (right or wrong) that India's failure stems from a lack of belief in the concept called "national pride". We are Maharashtrians or Punjabis or Tamil or Gujarati first - Indian second. Somehow; years of foreign rule has brainwashed us that "imported" is better and that has kind of become a self fulfilling prophecy. It's a different matter that the manufacturing policy is based on a system of entry-exit and operational hurdles that is the biggest put off for manufacturing anything in this Country; but those who do know how to bend the system and thrive in an environment that encourages evasion, cheating, sub standard and inconsistent quality among a list of several negatives. In general; being mediocre is fine - produce now and refine later is the manufacturing mantra - knowing well that the demand is limitless for the scarce goods produced as a result of which the consumer will lap up anything without recourse the very limited consumer protection systems in place.

The malaise is so contagious that even foreign brands that have set up shop in India are now getting used to accepting quality defects in their famed zero tolerance production lines as a part of life here. Consumers too for some reason have no will to complain about shoddy service or products being dished to them. Too busy to make the effort or too low down in the pecking order to be taken notice of.

Will a change of laws alone bring about a change in the Indian manufacturing context? Laws have no effect on the level of corruption in this nation and I am not referring to monetary corruption alone. Increase in productivity, management and labour attitude, adherence to quality standards, ethics, and a host of other measurable intangibles have to kick in to make "Make in India" a success. India does not lack in innovation or entrepreneurship - there are plenty of examples to substantiate it - right from our "Mission to Mars" to the several "Rags to Riches" heros. All we need to "Make ourselves in India" first and before you know it several Indian brands will be a household feature across the globe.

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