To shift focus on the recent emerging sectors such as genomic, commerce and industry minister Suresh Prabhu has indicated for a shift in India’s export and manufacturing strategy, especially on the goods that are not currently among the top 10 items that are being shipped out of the country. The new person in Udyog Bhavan is strategizing mainly on India’s political relationships to push Indian exports to new markets in countries like Cuba and many places in Africa.
Prabhu has informed that India has its own model, as it is looking forward to increasing from under 20% of GDP share from manufacturing to incline employment and also aid sectors like agriculture and their food processing.
"If India has to have a competitive advantage, we can't keep copying others because that has already been used and become redundant. We have to find India's own model and we are identifying that in consultation with global experts and our own industry”, Prabhu mentioned in one of his recent statements.
As the share of services is growing faster, it is definitely not an easy task to increase the share of manufacturing. We have to ensure that manufacturing also has to be kept up with the pace of growth in services, the minister exclaimed.
Prabhu is aiming at presenting India in the global arena, for these efforts are being made to launch “Make in India 2.0” along with other similar schemes.
Specific targets will be set up with additional steps to support the manufacturing sector and the new focused areas as genomic. For example, to cut down the reliance on imports from China, development and progress of basic chemicals has been identified as a priority.
"It is more like backward integration for the industry." The success of the plan hinges on investment by the domestic industry, which he admitted was grappling with idle capacity as well as financial stress. He said exports could help use up the excess production capacity and added that there were indications that the strain on the balance sheet was easing as companies de-leveraged.
To accelerate the economic growth, the government is looking forward to dealing with investments. Prabhu also mentioned that it is not necessary for an immediate review of the FDI regime.
The minister also added that he has marked some of the issues on the export side with Finance minister Arun Jaitley which also includes some issues related to GST, and signified that his ministry has called for more resources.
The move to get export promotion councils to sketch the business plans for India’s traditional focus areas like engineering, textiles, and plantations are pushed forward.
While the minister is bringing back the focus on project exports through advancing project financing especially in West Africa to handle the competition from China, he also acknowledged that nation did not possess deep pockets like our neighbour.
It is known that 'Pvt sector has driven India's growth story' and the concept here is to forge the partnerships. For instance, the minister has invited Korean companies to make investments in the marine space. "They will themselves import, so that will aid the economy”.
Also, the Korean companies are known for good brand equity, as a result, Japanese and others will be responsive in buying from them. Meanwhile, we can also use their technology and investments to make export to other countries.
Prabhu declared that China has agreed to study India’s sector-specific problems with Rita Teaotia, commence secretary who is handling the task from India side.
Prabhu stated, "India's growth story is a private sector-driven growth story as many of the restrictive practices which were impeding their growth were removed since 1991. We will allow this spirit to grow. I have appointed a regulatory review committee under the chairmanship of secretary, industrial policy and promotion. This will allow unleashing of entrepreneurial spirit. We will make software by removing hurdles, hardware by providing space and partnering with states."