India is showing positive intent toward change, following the tried and tested methods of developed countries to initiate socio-economic transformation. By reducing time frame for construction, offering flexible financing solutions, protecting minority investors, skill development, resolving insolvency, enforcing contracts and creating favourable policy environment has helped India create a better position for itself in the world, encouraging investors.
Recent proceedings focusing toward manufacturing have helped India’s manufacturing sector to grow 7.32% at a CAGR of from FY12 to FY17. Growth in India’s manufacturing wholesale pricing index has been 2.4% from April 2016 to January 2017. Steel, fertilizer, cement, refinery products and energy sectors in India has shown incredible growth with new reforms and policies being enforced. To be exact, India’s energy industry has shown best turn around statistics with the country generating surplus of power for the first time in at least 13 years. Green energy revolution has played a major part in this achievement.
Supply side reforms, policy initiatives, mandate enforcements, green corridors program, and Make in India program have made great impact in changing the manufacturing scenario of India for the better. The results are seen in huge growth within solar module capacity (8400 MW) and installed capacity that has already reached 20 GW, making the 100 GW target a reality.
This incredible progress story revolving around the green energy sector is estimated to make India the fifth largest manufacturing country in the world by the end of 2020.
This clearly speaks of new opportunities and options for India to become one of the energy super powers of the world, improving economic, industrial, and social structures for the better.
Initiatives Have Shown Result
Recently India has claimed the 100th position in World Bank’s list of countries that have made considerable changes to become business compatible, drawing foreign investment. Last year India was 32 places below, and this year’s jump was possible due to country’s endorsement of economic reformation through welcoming industrial and technological adaptations.
Statistics show a total of 67% increase in FDI inflow into India in the last 3 years. And within August 2017, the country witnessed FDI inflow of near about $9.64 billion. This clearly signifies that the growth plan that Government of India supported, is working perfectly and leading the country towards growth. Focusing on manufacturing sector promises to create jobs, improve industrial structure, improve R&D structure, and ultimately support domestic manufacturing, allowing India to reduce forex outflow. And since solar industry is already in favour of the world, India should put more focus on this industry and use it to initiate industrial, infrastructural, economic, and social reform.
Dominant solar countries like- China and the US have aggressively expanded their domestic manufacturing capacity, which has helped them to control (lower) the price of manufactured products while improving quality. This simple equation has led China and the US to claim large portions of the global market through exports, and made them leaders in the global market. Manufacturing success of these countries can be replicated within India by focusing on manufacturing.
Boost in manufacturing sector in India can help the country grow. However, the focus should be on the most lucrative sectors such as- solar energy sector. Domestic manufacturing of Indian solar sector is able to offer energy security, position in the export market, and stands to save India huge amounts of money ($42 bn by 2030 from solar imports), kicking back the profits towards socio-economic growth. So, it is important for India to set priorities and take the right decisions in concentrating more efforts towards manufacturing within the best promising sectors for expected growth.