So Prime Minister Narendra Modi has flagged off the "Make In India" campaign and we are hearing of increasing levels of defense spending under this policy.
Big businesses from TATAs to Reliance have lined up to help the government make defense equipment in India. The Reliance dockyard in Gujarat at Pipavav has been chosen by Russia to build some of the largest naval warships Biggest warship project: Russia selects Anil Ambani's Pipavav to make frigates for Indian Navy Boeing and TATAs have tied up to make defense equipment in India Boeing, Tatas to make defence gear in India
Whilst these are great developments and will lead to more jobs and technology development in India, I think these are not sustainable means of developing "Make In India." After all, defense spending comes from the government and government spending comes from taxes on businesses and individuals. The logical conclusion of such high defense spending would be that the taxes are going up sometime in the future.
I think we need to develop a sustainable model for "Make In India" that leads to overall growth without high debt levels. One of the core focuses of the government in this regard has been electronics and semiconductor manufacturing. The government has been giving various degrees of benefits to the electronic manufacturing industry since after oil and gas, electronics are our next biggest import.
The electronics industry in India focuses on consumer electronics such as smart phones and tablets. To build a stronger industry in this sector, we need stronger products that the people would like to adopt into their lives.
One such product could be electric cars. Tesla Motors' Roadster, Toyota Prius Hybrid, Nissan Leaf and Chevrolet Volt Hybrid are some of the cars that have been developed to cater to the electric and hybrid car markets. What holds back the adoption of such cars is the availability of charging stations. The government could invest in the development of electric car charging stations in India and this could hasten the adoption of electric cars such as Mahindra's e20;. Government could encourage the industry participants to make more cars on similar lines and that could lead to the development of a new sector of automobile manufacturing industry in India.
On similar lines, the government could invest in high speed electric rail systems that transport goods and people in the most efficient manner at speeds and comfort levels that are unmatched across other categories, including air travel (if we include wait times at airports.) The strategic importance of such high speed rail systems would be priceless.
The government could further spend money on manufacturing high efficiency solar cells and panels in India and these could be deployed in roof top solar configurations that lead to distributed power generation models with revenue generation for small households.
I think these measures would lead to a sustainable "Make In India" movement that would pay for itself and give a positive Return on Investment in the long run.
What are your thoughts?
Big businesses from TATAs to Reliance have lined up to help the government make defense equipment in India. The Reliance dockyard in Gujarat at Pipavav has been chosen by Russia to build some of the largest naval warships Biggest warship project: Russia selects Anil Ambani's Pipavav to make frigates for Indian Navy Boeing and TATAs have tied up to make defense equipment in India Boeing, Tatas to make defence gear in India
Whilst these are great developments and will lead to more jobs and technology development in India, I think these are not sustainable means of developing "Make In India." After all, defense spending comes from the government and government spending comes from taxes on businesses and individuals. The logical conclusion of such high defense spending would be that the taxes are going up sometime in the future.
I think we need to develop a sustainable model for "Make In India" that leads to overall growth without high debt levels. One of the core focuses of the government in this regard has been electronics and semiconductor manufacturing. The government has been giving various degrees of benefits to the electronic manufacturing industry since after oil and gas, electronics are our next biggest import.
The electronics industry in India focuses on consumer electronics such as smart phones and tablets. To build a stronger industry in this sector, we need stronger products that the people would like to adopt into their lives.
One such product could be electric cars. Tesla Motors' Roadster, Toyota Prius Hybrid, Nissan Leaf and Chevrolet Volt Hybrid are some of the cars that have been developed to cater to the electric and hybrid car markets. What holds back the adoption of such cars is the availability of charging stations. The government could invest in the development of electric car charging stations in India and this could hasten the adoption of electric cars such as Mahindra's e20;. Government could encourage the industry participants to make more cars on similar lines and that could lead to the development of a new sector of automobile manufacturing industry in India.
On similar lines, the government could invest in high speed electric rail systems that transport goods and people in the most efficient manner at speeds and comfort levels that are unmatched across other categories, including air travel (if we include wait times at airports.) The strategic importance of such high speed rail systems would be priceless.
The government could further spend money on manufacturing high efficiency solar cells and panels in India and these could be deployed in roof top solar configurations that lead to distributed power generation models with revenue generation for small households.
I think these measures would lead to a sustainable "Make In India" movement that would pay for itself and give a positive Return on Investment in the long run.
What are your thoughts?
No comments:
Post a Comment